International Petroleum Q4 Earnings Call Highlights

Core Insights - IPC has accelerated its drilling schedule at Blackrod, raising its 2025 capital guidance to $340 million from $320 million, with drilling expected to continue into 2026 [1] - The company reported substantial spending of $228 million on growth capital at Blackrod Phase 1 in 2025, bringing cumulative spending to $820 million, with first oil expected in Q3 2026 [2] - IPC achieved first steam delivery at Blackrod ahead of schedule, around a quarter earlier than initially planned, and highlighted production support activities at other fields [3] Capital Expenditure and Cash Flow - Total capital expenditure for 2025, including decommissioning, was $344 million, aligning with IPC's guidance of $340 million, resulting in a free cash flow of -$153 million for the year [9] - Operating cash flow was reported at $63 million in Q4 and approximately $259–$260 million for the full year, with a full-year average Brent price of $69 [8] - The company ended 2025 with net debt of $484 million, reflecting heavy spending at Blackrod and share buybacks, with net debt increasing by around $280 million over the year [10] Production and Operating Costs - IPC reported average production of 45.6 thousand barrels of oil equivalent per day in Q4 and 44.9 thousand BOE per day for the full year, near the top end of its guidance range [5] - Operating costs were stable, with Q4 costs at $18.40 per BOE and full-year costs at $17.80 per BOE, slightly below the guidance range of $18–$19 per BOE [4] Pricing and Hedging - Average benchmark prices for 2025 were $69 for Brent and $65 for WTI, with a WTI/WCS differential averaging -$11, supporting profitability [13] - Hedging contributed positively to IPC's financial results in 2025, generating gains on WTI, Brent, and gas hedges, while incurring losses on differential protection and some FX hedges [15] Shareholder Returns - IPC completed its 2024–2025 NCIB by repurchasing 7.7 million shares, reducing shares outstanding by approximately 6.5%, with a total of 77 million shares repurchased since inception [16] Safety and Environmental Performance - The company reported no material health, safety, or environmental incidents in 2025, highlighting strong safety performance at Blackrod [17]