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Pumpjacks at work pumping crude oil near Stettler, Alta., June 20, 2007.Larry MacDougal/The Canadian Press

Whitecap Resources Inc. has repeated recent equity-issue success with its latest financing, a $125-million deal to fund its acquisition of Alberta light oil assets.

The bought-deal offering of subscription receipts, led by National Bank Financial, was a hot seller, according to several investment-industry sources. "Amazing demand," was how one described it.

Whitecap issued 7.5-million receipts at $16.55 each, to be exchanged for shares when the $267-million acquisition of conventional light oil properties in the Elnora area of Alberta, announced on Wednesday, closes around the end of October.

Whitecap shares surged 7 per cent to $18.42 on the Toronto Stock Exchange on Thursday.

In March, Whitecap's $500-million acquisition financing also flew off the shelves. Both deals came complete with a dividend increase and bump in annual production and financial targets.

The company, led by CEO Grant Fagerheim, is one of a handful of small dividend-paying energy producers that have had little problem raising money, even during last year's lean times.

In its latest deal, Whitecap is buying assets producing 2,500 barrels of oil equivalent a day, most of it light oil from the Nisku geological formation. It will add an estimated $6.1-million of free cash flow this year and nearly $50-million next year, the company said.

At the same time, it is selling non-core assets pumping 600 barrels a day to an unnamed private company for $57-million.

For 2014, Whitecap expects to boost cash flow and production 1 per cent above its previous targets. Output is now pegged at 32,050 barrels of oil equivalent a day and cash flow at $501.4-million.

Whitecap boosted its monthly payout by 12 per cent to 7 cents a share.

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 28/03/24 4:00pm EDT.

SymbolName% changeLast
WCP-T
Whitecap Resources Inc
+0.59%10.25

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