CALGARY, May 25, 2026, 11:53 MDT
- Whitecap shares dropped 3.45% to C$16.21 in delayed TSX trade, tracking lower crude prices.
- Canada’s main index set a record high. Energy was the only sector in the red.
- Whitecap’s new buyback program is set to start Monday and includes up to 120.7 million shares.
Whitecap Resources Inc. shares dropped Monday, moving lower against the Toronto market’s new highs, after crude prices tumbled. That pressured Canadian energy stocks as Whitecap’s updated buyback plan started.
The Calgary-based oil and gas producer traded down 3.45% at C$16.21 in delayed action, moving between C$16.15 and C$16.55. NYMEX crude was off 6.73% and Brent futures lost 6.99%, according to Reuters/LSEG data, hitting producer cash flows that follow crude prices.
Whitecap shares had been on a tear over the past year, with the stock trading close to its 52-week high at C$17.33. The drop on Monday was a big reversal and signals how fast investors can dump even the stronger Canadian oil stocks when commodity prices drop.
Canada’s S&P/TSX composite climbed 0.7% to 34,778.98 at 10:21 a.m. ET, hitting a record high, according to Reuters. Energy was the only big TSX group that dropped, down 2.1% after U.S. oil prices slid to near $91 a barrel on hopes U.S.-Iran talks might curb supply worries.
Whitecap dropped about as much as the rest of the sector. Canadian Natural Resources shed 3.55% to C$64.85, with Cenovus Energy down 4.06% at C$39.80, delayed Reuters/LSEG data shows. Reuters Japan
Whitecap got the nod from the Toronto Stock Exchange last week for its normal course issuer bid, clearing the way for open-market share buybacks. The approval lets Whitecap purchase as many as 120.7 million common shares, equal to 10% of its public float, over a 12-month span starting May 25.
Whitecap said share buybacks can help the stock by cutting the share count, but this only works if they’re paid for with cash and don’t hurt the balance sheet. The company said any shares bought will be cancelled. Repurchases are part of Whitecap’s plan to allocate free funds flow.
Whitecap posted a strong quarter, with record first-quarter output hitting 391,416 boe/d. The company, which uses the boe/d metric to count oil, gas and liquids in one unit, also lifted its full-year production forecast by 7,500 boe/d to a range of 378,000 to 382,000 boe/d.
Whitecap posted C$1.03 billion in funds flow and C$349 million in free funds flow for the quarter. Free funds flow, which is what’s left after capital spending, is tracked by energy investors since it pays for dividends, buybacks, and paying down debt.
Whitecap CEO Grant Fagerheim told analysts on its May earnings call the company isn’t planning to raise its 2026 capital program and remains focused on cutting debt with oil prices up, MarketBeat said. Fagerheim added that “small-scale consolidation” near its current assets is still “part of our DNA.” MarketBeat
Whitecap is holding its monthly dividend steady. The company is paying a C$0.0608 cash dividend per share for May, with payment set for June 15 to holders on record at May 31.
Oil is the risk to watch. If peace talks make headway and crude drops again, Whitecap’s buyback and production growth might not be enough to defend cash flow forecasts. If talks break down and crude jumps, Whitecap faces another set of unknowns—more price swings, renewed inflation questions and maybe new thinking on drilling plans and costs.
Canadian exchanges traded Monday, while U.S. markets stayed shut for Memorial Day. CDS data listed Canadian markets open, U.S. markets closed for the holiday. That can thin out cross-border liquidity and may leave energy shares more sensitive to moves in commodities.
