In This Article:
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Average Production: 45,000 barrels of oil equivalent per day in Q3; full-year guidance maintained at 46,000 to 48,000 barrels per day.
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Operating Cost: Q3 OpEx per BOE was $17.90; full-year operating expenditure revised to below $18 per BOE.
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Capital Expenditure: $437 million USD expected for the full year; $313 million USD spent year-to-date.
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Operating Cash Flow: $73 million USD in Q3; year-to-date OCF is $264 million USD; full-year forecast between $335 to $342 million USD.
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Free Cash Flow: Minus $38 million USD in Q3; positive $44 million USD excluding Blackrod growth spend; full-year forecast between minus $140 to minus $133 million USD.
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Net Debt: $157 million USD.
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Gross Cash Resources: Just shy of $300 million USD.
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Share Repurchase: $7.5 million shares purchased under the normal course issuer bid program by end of September.
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Net Income: In excess of $100 million USD for the first nine months.
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Total Assets: Just above $2 billion USD at the end of September.
Release Date: November 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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International Petroleum Corp (IPCFF) delivered an average production of 45,000 barrels of oil equivalent per day, aligning with their forecast range.
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The company maintained its full-year production guidance at 46,000 to 48,000 barrels of oil equivalent per day.
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Operating costs for Q3 were slightly below guidance, leading to a revised full-year operating expenditure forecast of below $18 per BOE.
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The company has a strong balance sheet with net debt at $157 million USD and gross cash resources just shy of $300 million USD.
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No material safety incidents were reported in the quarter, and the company is on track to achieve its net emissions intensity reduction target by 2025.
Negative Points
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Q3 free cash flow was negative $38 million USD, although it was positive $44 million USD excluding Blackrod growth spend.
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Gas prices remained weak, impacting revenues and reducing optimization activity at the Suffield gas assets.
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The company experienced a slight build in net debt relative to the prior quarter, attributed to growth spend at Blackrod and share buybacks.
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Operating cash flow for the first nine months was $264 million USD, lower than the previous year.
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The company anticipates a significant CapEx spend in 2025, with around $250 million USD expected for the Blackrod project alone.
Q & A Highlights
Q: How should we think about 2025 capital expenditures compared to 2024, which is a peak investment year? A: William Lundin, CEO, mentioned that specific 2025 CapEx guidance has not been provided yet. However, the majority of the Blackrod project CapEx will be spent by the end of 2024, with around $250 million USD remaining. The 2025 CapEx is likely to be around this amount, but formal approval is pending.