International Petroleum Corporation Announces 2025 Year-End Financial and Operational Results and 2026 Budget, Reserves and Guidance

Core Insights - International Petroleum Corporation (IPC) reported strong operational and financial results for 2025, with a focus on the Blackrod Phase 1 project in Canada, forecasting first oil in Q3 2026, a quarter earlier than previously expected [1][4][10] - The company achieved an average net production of 44,900 barrels of oil equivalent per day (boepd) for the full year 2025, at the high end of its guidance range [4][14] - IPC's 2026 budget is set at USD 122 million, with production guidance between 44,000 and 47,000 boepd, and a forecast of USD 1 to 2 billion in free cash flow generation from 2026 to 2030 [1][6][25] Business Highlights - IPC's average net production for Q4 2025 was approximately 45,600 boepd, consistent with guidance [4][14] - The company completed the acquisition of lands adjacent to the Blackrod project, adding 64 million barrels of contingent resources [4][10] - IPC's operating costs per boe were USD 17.8 for the full year 2025, below the guidance range [4][14] Financial Highlights - IPC generated operating cash flow of USD 259 million for the full year 2025, despite weaker oil prices [3][14] - The company reported a net result of USD 28.9 million for 2025, with a negative free cash flow of USD 153 million [3][9] - As of December 31, 2025, IPC's net debt stood at USD 484 million [3][15] Reserves and Resources - IPC's proved plus probable (2P) reserves as of December 31, 2025, were 521 million boe, with a reserve life index of 31 years [1][9][24] - The company replaced 277% of its annual production with new reserves in 2025 [24][54] - Contingent resources (unrisked) were reported at 1,224 million boe, with significant contributions from the Blackrod project [1][24] 2026 Annual Guidance - IPC forecasts average net production for 2026 to be between 44,000 and 47,000 boepd, with operating costs expected to be between USD 18 and 20 per boe [6][25] - The capital and decommissioning expenditure budget for 2026 is set at USD 122 million, primarily focused on the Blackrod project [6][25] - Free cash flow for 2026 is projected to range from negative USD 70 million to positive USD 85 million, depending on oil prices [6][10]