Whitecap Resources CEO bets on an uptrend
    
    
      
    
  

  
    
        American mobility outside
the home
        ramped up after its
mid-April low,
        but it has levelled off,
        only grinding slightly
higher since mid-June.
        The Canadian Energy sector
        has had the same kind of
recovery,
        hitting a peak on June
8th,
        but unlike out-of-home
activity,
        Energy stocks have fallen
off.
        The S&P/TSX Capped Energy
Index
        is down 28.5% since June
8th.
        While many natural gas
names like
        Pine Cliff Energy have
        bucked the trend and shot
higher,
        oil-weighted names have
generally lagged.
        Whitecap Resources (WCP)
is
        weighted towards crude
(87% in
        Q2) and is down 9.8% since
June 8th,
        but it has outpaced
        many of its oil-focused
peers.
        In Q2, Whitecap funds
        flow was $0.19 per share.
        That left it with enough
cash even
        after dividends to reduce
        debt by $32 million.
        Now it is back to focusing
on
        oil patch buying
opportunities
        as evidenced by
        a recent small acquisition
in
        the Peace River Arch
region of Alberta for
        $5.2 million and a larger
deal announced in
        August involving assets
        in Alberta and
Saskatchewan.
        The next hurdle for
Whitecap
        stock will be to try
        and overtake its 200-day
moving average.
        The CEO seems to be
betting
        that it's only a matter of
time.
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        This report is not
        a recommendation to buy or
sell securities.