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 previously indicated [3][21] - 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 (OCF) for Q3 2025 was USD 66.1 million, compared to USD 72.6 million in Q3 2024 [8] - Free cash flow (FCF) was negative USD 23.1 million for Q3 2025, an improvement from negative USD 38.3 million in Q3 2024 [8] - As of September 30, 2025, IPC's net debt increased to USD 435 million from USD 375 million at the end of Q2 2025 [18] Production and Operational Performance - IPC maintained its full-year 2025 average net production guidance range of 43,000 to 45,000 boepd [6][14] - The production composition for Q3 2025 was 53% heavy crude oil, 14% light and medium crude oil, and 33% natural gas [7][51] - Operating costs per boe for Q3 2025 were USD 17.9, slightly below guidance [15] Blackrod Development - The Blackrod Phase 1 development has a growth capital budget of USD 850 million, with USD 785 million incurred to date [3][20] - The project is expected to reach plateau production rates of 30,000 bopd [20] - IPC plans to fund remaining capital expenditures through operational cash flow and existing credit facilities [22] Shareholder Returns - IPC completed its 2024/2025 Normal Course Issuer Bid (NCIB), repurchasing approximately 7.5 million common shares, reducing outstanding shares by 6.2% [4][24] - The company plans to seek approval for the renewal of the NCIB in December 2025 [26] Market Context - The average Brent price for Q3 2025 was approximately USD 69 per barrel, stable compared to the previous quarter [8] - Global oil demand is expected to reach an all-time high in 2025, continuing to rise in 2026 [8][9] - IPC has hedged approximately 50% of its forecast 2025 oil production at prices around USD 76 for Dated Brent and USD 71 for WTI [10]