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In a shock turn of events, despite OPEC announcing , along with its allies, that they would reduce their collective oil production by 1.2 million barrels daily, the price of crude has collapsed. The North American benchmark West Texas Intermediate (WTI) is trading at well below US$50 per barrel to be down by 19% for the year to date. This has had a marked impact on the value of oil stocks with many plunging sharply in recent weeks. One quality upstream oil stock that has fallen substantially to be down by 56% for the year to date is intermediate oil producer Whitecap Resources (TSX:WCP) . Attractive light oil assets Whitecap is focused on light as well as medium oil production from the Viking and Cardium plays in southwestern Canada, which means that, unlike oil sands companies, the driller isn’t impacted by the crisis surrounding Canadian heavy oil. The driller has oil reserves of 483 million barrels, which have an after-tax value of $5.4 billion, or roughly $13 per share, which is more than three times its current market price. This highlights the considerable upside available to investors once oil prices bounce back, which they undoubtedly will do when OPEC […]
