Whitecap Resources Q3 Profit Jumps 60% as Proposed Federal Tax Break Could Add C$400 Million in Cash Flow

Canadian oil and gas producer Whitecap Resources (TSX: WCP) reported a nearly 60% increase in third-quarter profit, driven by elevated crude prices, and said a proposed federal tax incentive could generate an additional C$400 million ($286 million) in free cash flow next year. Net income rose to C$326.4 million from C$204.2 million a year earlier, according to the earnings release. Revenue climbed 45% to C$2.41 billion, while quarterly free funds flow reached C$640 million. Production averaged 390,720 barrels of oil equivalent per day, prompting Whitecap to raise full-year output guidance for the third time in 2026 to 392,000 boepd. The company also lifted its annual capital spending budget by C$100 million to approximately C$2.2 billion. Prime Minister Mark Carney's proposed Productivity Mega Deduction would allow companies to immediately deduct 100% of qualifying capital investments. If enacted, Whitecap expects the measure to raise projected 2027 free funds flow to C$2.5 billion from C$2.1 billion under current commodity-price assumptions. The company completed a C$15 billion merger with Veren in 2025 and expects condensate production to rise 10%–15% in 2027, supported by Montney and Duvernay investments. Net debt has fallen by C$1.3 billion since the end of 2025.