International Petroleum Corporation Announces Third Quarter 2025 Financial and Operational Results and Blackrod Phase 1 Development Progressing Ahead of Schedule

Core Insights - International Petroleum Corporation (IPC) reported strong operational performance with an average production of 45,900 barrels of oil equivalent per day (boepd) in Q3 2025, exceeding guidance [2][7] - The Blackrod Phase 1 development is ahead of schedule, with first steam expected by the end of 2025 and first oil by Q3 2026, a quarter earlier than initially planned [3][18] - Financial results for Q3 2025 showed revenue of USD 172.3 million, gross profit of USD 32.1 million, and a net result of USD 3.8 million [8][14] Financial Highlights - Q3 2025 revenue was USD 172.3 million, slightly down from USD 173.2 million in Q3 2024 [8] - Gross profit decreased to USD 32.1 million from USD 39.5 million year-over-year [8] - Operating cash flow for Q3 2025 was USD 66.1 million, compared to USD 72.6 million in Q3 2024 [8] - Free cash flow was negative at USD -23 million for Q3 2025, improving from USD -38.3 million in Q3 2024 [15] - As of September 30, 2025, IPC's net debt increased to USD 435 million from USD 375 million at the end of Q2 2025 [15] Production and Operational Highlights - Average net production for Q3 2025 was 45,900 boepd, with 53% from heavy crude oil, 14% from light and medium crude oil, and 33% from natural gas [7][50] - The Blackrod Phase 1 project has incurred capital expenditures of USD 785 million, approximately 92% of the USD 850 million budgeted for first oil [17] - Operating costs per boe were USD 17.9, slightly below guidance [14] Debt and Shareholder Returns - IPC successfully refinanced USD 450 million of unsecured bonds, extending maturity to October 2030 with a coupon of 7.5% [16] - The company completed its 2024/2025 Normal Course Issuer Bid (NCIB), repurchasing approximately 7.5 million common shares, reducing outstanding shares by 6.2% [20][22] Market Outlook - The average Brent price for Q3 2025 was approximately USD 69 per barrel, with expectations for global oil demand to reach an all-time high in 2025 [8][9] - IPC has hedged around 50% of its forecast 2025 oil production at prices of USD 76 and USD 71 per barrel for Dated Brent and WTI, respectively [10]