CALGARY, July 31, 2013 /CNW/ – Whitecap Resources Inc. (“Whitecap” or the “Company“) (TSX: WCP) is pleased to announce the successful completion of its
previously announced acquisition of certain strategic light oil assets
located predominantly in its core Valhalla and Garrington operated
areas of Alberta for total consideration of $173.6 million (the “Acquisition“) as previously detailed in our June 27, 2013 press release. The
Acquisition adds 2,900 boe/d (56 percent oil and NGLs) of high netback,
low base decline production (16 percent current decline rate) in areas
where Whitecap already operates 96 percent of the production.

We continue to focus on maximizing total shareholder return and the
Acquisition solidifies Whitecap as a premier intermediate oil-weighted,
dividend paying company focused on per share growth in cash flow,
production and reserves. Whitecap has demonstrated the sustainability
of its dividend-growth strategy in the first half of 2013 and will
continue to do so for the balance of the year and into 2014 and 2015.
We anticipate average production of 20,000 – 21,000 boe/d in the second
half of 2013 which will generate cash flow of $145 – $150 million based
on a cash flow netback of $39.50/boe. After development capital
spending of $75 million and dividend payments of $50.2 million, this
will leave Whitecap with $24.8 million of excess free cash flow in the
second half of 2013. Our total payout ratio for the second half of 2013
is estimated to be 83 percent and 97 percent for the full year.

The Acquisition was partially funded through a bought deal public
financing (the “Offering“) which closed on July 18, 2013, through a syndicate of underwriters
co-led by GMP Securities L.P. and National Bank Financial Inc. and
including Dundee Securities Ltd., FirstEnergy Capital Corp., Macquarie
Capital Markets Canada Ltd., TD Securities Inc., CIBC World Markets
Inc., Raymond James Ltd., Scotia Capital Inc., Peters & Co. Limited and
RBC Capital Markets. Pursuant to the Offering, Whitecap issued
17,172,000 Subscription Receipts of Whitecap at a price of $9.90 per
Subscription Receipt to raise gross proceeds of approximately $170
million. In accordance with their terms, each Subscription Receipt was
exchanged for one Common Share on July 31, 2013 upon the closing of the
Acquisition and the proceeds from the sale of the Subscription Receipts
were released from escrow. Holders of Subscription Receipts issued
under the Offering are now holders of Common Shares and as a result,
will be entitled to the $0.05 per share dividend payable to
shareholders of record as of July 31, 2013, which Whitecap previously
announced would be payable on August 15, 2013. Holders of Subscription
Receipts are not required to take any action in order to receive the
Common Shares and dividends to which they are entitled.

Whitecap Resources Inc. is a dividend paying, oil-weighted company
focused on providing sustainable monthly dividends to its shareholders
and per share growth through a combination of accretive oil-based
acquisitions and organic growth on existing and acquired assets. For
further information about Whitecap please visit our website at www.wcap.ca.

Forward-Looking Statements and Other Advisories
This press release contains forward-looking statements and
forward-looking information (collectively “forward-looking
information”) within the meaning of applicable securities laws relating
to the Company’s plans and other aspects of Whitecap’s anticipated
future operations, management focus, objectives, strategies, financial,
operating and production results and business opportunities, including
expected 2013 and 2014 production, product mix, cash flow, and
operating netbacks. In addition, and without limiting the generality of
the foregoing, this press release contains forward-looking information
regarding the benefits to be acquired from the Acquisition including
anticipated rates of return, operating costs, netbacks and other
economics, production levels, and the impact of the Acquisition on
Whitecap and its results and development plans, including, on its
production, cash flow, production weighting, netbacks, development
capital spending and free cash flow.

Forward-looking information typically uses words such as “anticipate”,
“believe”, “project”, “expect”, “goal”, “plan”, “intend” or similar
words suggesting future outcomes, statements that actions, events or
conditions “may”, “would”, “could” or “will” be taken or occur in the
future. The forward-looking information is based on certain key
expectations and assumptions made by Whitecap’s management, including
expectations and assumptions concerning prevailing commodity prices,
exchange rates, interest rates, applicable royalty rates and tax laws;
future production rates and estimates of operating costs; performance
of existing and future wells; reserve and resource volumes; anticipated
timing and results of capital expenditures; the success obtained in
drilling new wells; the sufficiency of budgeted capital expenditures in
carrying out planned activities; the timing, location and extent of
future drilling operations; the state of the economy and the
exploration and production business; results of operations;
performance; business prospects and opportunities; the availability and
cost of financing, labor and services; the impact of increasing
competition; and the ability to market oil and natural gas
successfully.

Although the Company believes that the expectations and assumptions on
which such forward-looking information is based are reasonable, undue
reliance should not be placed on the forward-looking information
because Whitecap can give no assurance that they will prove to be
correct. Since forward-looking information addresses future events and
conditions, by its very nature they involve inherent risks and
uncertainties. The Company’s actual results, performance or achievement
could differ materially from those expressed in, or implied by, the
forward-looking information and, accordingly, no assurance can be given
that any of the events anticipated by the forward-looking information
will transpire or occur, or if any of them do so, what benefits that
the Company will derive there from. Management has included the above
summary of assumptions and risks related to forward-looking information
provided in this press release in order to provide securityholders with
a more complete perspective on Whitecap’s future operations and such
information may not be appropriate for other purposes.

Readers are cautioned that the foregoing lists of factors are not
exhaustive. Additional information on these and other factors that
could affect our operations or financial results are included in
reports on file with applicable securities regulatory authorities and
may be accessed through the SEDAR website (www.sedar.com).

These forward-looking statements are made as of the date of this press
release and Whitecap disclaims any intent or obligation to update
publicly any forward-looking information, whether as a result of new
information, future events or results or otherwise, other than as
required by applicable securities laws.

Non-GAAP Measures
This document contains the terms “cash flow”, “free cash flow” and
“operating netbacks” which do not have a standardized meaning
prescribed by Canadian GAAP and therefore may not be comparable with
the calculation of similar measures by other companies. Whitecap uses
cash flow, free cash flow and operating netbacks to analyze financial
and operating performance. Whitecap feels these benchmarks are key
measures of profitability and overall sustainability for the Company.
Each of these terms is commonly used in the oil and gas industry. Cash
flow, free cash flow and operating netbacks are not intended to
represent operating profits nor should they be viewed as an alternative
to cash flow provided by operating activities, net earnings or other
measures of financial performance calculated in accordance with GAAP.
Cash flows are calculated as cash flows from operating activities less
changes in non-cash working capital. Free cash flows are calculated as
cash flow minus development capital expenditures. Operating netbacks
are determined by deducting royalties, production expenses and
transportation and selling expenses from oil and gas revenue.

Note: “Boe” means barrel of oil equivalent on the basis of 6 mcf of
natural gas to 1 bbl of oil. Boe’s may be misleading, particularly if
used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on
an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead.
Given the value ratio based on the current price of crude oil as
compared to natural gas is significantly different from the energy
equivalency of 6 Mcf: 1 Bbl, utilizing a conversion ratio at 6 Mcf: 1
Bbl may be misleading as an indication of value.

SOURCE Whitecap Resources Inc.