When looking for a Canadian stock with real growth potential in 2025, Whitecap Resources (TSX:WCP) is tough to ignore. It has quietly become one of the strongest names in the Canadian energy sector, combining consistent financial results, a growing dividend, and strategic expansion. For investors looking to ride the wave of Canada’s energy rebound, Whitecap offers an appealing mix of value, yield, and growth. Let’s get into why.
The stock
Whitecap is based in Calgary and focuses on light oil and natural gas production. That may not sound flashy, but what sets it apart is how efficiently it operates and how disciplined it is with cash. In the first quarter of 2025, the energy stock reported net income of $162.6 million. That’s nearly triple what it brought in during the same period last year. Cash flow from operations climbed to $446.3 million, showing that the business is humming along even amid a volatile oil market.
Its production tells a similar story. Whitecap produced 179,051 barrels of oil equivalent per day in Q1. That’s up 6% from last year. What’s more, much of that growth came from the Montney and Duvernay plays, which are rich, well-positioned oil and gas zones in Alberta. The energy stock focused its investment on these areas because they offer lower costs and higher returns. New wells in the Montney are exceeding expectations, and that’s giving management even more confidence in its 2025 outlook.
Where Whitecap really shines is how it handles its cash. In a world where some energy stocks chase growth at any cost, Whitecap has taken a more balanced approach. It uses free cash flow to reduce debt, reward shareholders, and fund its capital program. The energy stock cut net debt to $986.9 million by the end of Q1 2025, down from about $1.5 billion the year before. It puts Whitecap in a stronger position if energy prices drop again, which gives investors peace of mind.
Value, income, and growth
Dividends are also part of the story. Whitecap pays a monthly dividend of $0.0608 per share, which works out to an annual payout of roughly $0.73. At the current share prices, that’s a yield of around 8.4%. With its strong balance sheet and rising cash flow, there’s room for more increases in the near future.
Then there’s the energy stock’s big merger with Veren, which closed in early 2025. This was a major move, creating one of the largest light oil and condensate producers in Canada. Veren brought with it premium assets, especially in the Duvernay formation, and added both scale and efficiency to Whitecap’s operations. The combined company expects to find cost savings through shared infrastructure and drilling technology. It also expects to unlock even more growth opportunities through this partnership.
The merger also allows Whitecap to lean into its strengths: concentrated, high-return projects that it can scale up efficiently. Investors can expect the company to remain focused on high-quality, low-cost production while continuing to reward shareholders with dividends and share buybacks. In fact, Whitecap launched a new normal course issuer bid this year, allowing it to repurchase up to 5% of its outstanding shares, showing that it believes its stock is undervalued.
Foolish takeaway
Looking at the bigger picture, Whitecap is in the right place at the right time. Global oil demand remains strong, and while prices may fluctuate, Canadian producers like Whitecap benefit from long-term global supply challenges. Plus, its Canadian-based production reduces exposure to geopolitical risk that international producers face. Whitecap also continues to invest in technology and carbon reduction strategies, making it a more responsible choice in an industry under pressure to clean up.
So if you’re looking for a top Canadian growth stock in 2025 that also pays you to wait, Whitecap fits the bill. It offers rising income, disciplined management, and smart expansion at a time when energy is in focus again. Whether you’re building a retirement portfolio or just want more exposure to Canadian oil and gas, Whitecap Resources deserves serious consideration this year.
