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

Core Viewpoint - International Petroleum Corporation (IPC) reported strong operational and financial results for 2025, with a focus on advancing the Blackrod Phase 1 project in Canada, forecasting significant cash flow generation starting in 2026 [1][2][3]. Financial Highlights - IPC's average net production for 2025 was 44,900 barrels of oil equivalent per day (boepd), at the high end of the guidance range [6][18]. - Total revenue for 2025 was USD 685.9 million, down from USD 797.8 million in 2024 [10]. - Operating cash flow (OCF) for 2025 was USD 258.9 million, while free cash flow (FCF) was negative USD 153.1 million [10][20]. - IPC's net debt as of December 31, 2025, was USD 484 million, following the refinancing of USD 450 million in unsecured bonds [21]. Operational Highlights - The Blackrod Phase 1 project achieved first steam injection in December 2025, with first oil expected in Q3 2026, a quarter earlier than previously guided [1][24]. - Development activities for Blackrod Phase 1 were completed ahead of schedule and on budget, with a total of USD 820 million spent on growth capital since project sanction [24][25]. - IPC's 2026 average daily production guidance is set between 44,000 and 47,000 boepd, with operating costs forecasted at USD 18 to 20 per boe [12][37]. Reserves and Resources - As of December 31, 2025, IPC's proved plus probable (2P) reserves were 521 million barrels of oil equivalent (MMboe), with a reserve life index of 31 years [12][34]. - Contingent resources (unrisked) were reported at 1,224 MMboe, with significant increases attributed to the Blackrod asset [12][36]. - The reserves replacement ratio for 2025 was 277%, indicating strong reserve additions relative to production [34]. Strategic Focus - IPC aims to generate USD 1 to 2 billion in free cash flow from 2026 to 2030, assuming Brent oil prices between USD 65 and 85 per barrel [3][9]. - The company emphasizes prudent capital allocation towards organic growth, stakeholder returns, and mergers and acquisitions to enhance shareholder value [3][11]. Shareholder Returns - In 2025, IPC returned USD 100 million to shareholders through share buybacks, purchasing approximately 7.7 million common shares [2][28]. - The company has committed to a new normal course issuer bid (NCIB) for the period of December 2025 to December 2026, allowing for the repurchase of up to 6.5 million shares [30]. Environmental, Social, and Governance (ESG) Performance - IPC recorded no material safety or environmental incidents in 2025, reflecting its commitment to operational excellence and responsible development [32]. - The company is on track to achieve a 50% reduction in net greenhouse gas emissions intensity by the end of 2025 compared to its 2019 baseline [33].