International Petroleum Corporation (IPC or the Corporation) (TSX, Nasdaq
Stockholm: IPCO) today released its financial and operational results and
related management's discussion and analysis (MD&A) for the three and six months
ended June 30, 2025. IPC also released its sixth annual Sustainability Report
detailing IPC's sustainability approach and initiatives.
William Lundin, IPC's President and Chief Executive Officer, comments: "IPC
continued to achieve strong operational and financial performance during Q2
2025 across all of our operations in Canada, Malaysia and France. Our operating
and financial results during the quarter were in line with the 2025 guidance
announced at our Capital Markets Day in February as we continue to execute
according to our budget and planned work program. The Blackrod Phase 1
development project in Canada continues to progress as planned. We have
completed around 85% of the current normal course issuer bid to the end of July
2025, having repurchased and cancelled over 5.3% of our outstanding shares since
December 2024. IPC now has fewer outstanding shares than at inception in April
2017 and we have not only grown our production and asset base substantially
since that time, but we also look forward to the upcoming completion of the
transformational Blackrod Phase 1 project."
Q2 2025 Business Highlights
* Average net production of approximately 43,600 boepd for the second quarter
of 2025, within the guidance range for the period (52% heavy crude oil, 14%
light and medium crude oil and 34% natural gas).(()(1))
* Continued progressing Phase 1 development activity as well as future phase
resource maturation works at the Blackrod asset in Canada.
* At Onion Lake Thermal, Canada, two of four planned production infill wells
and the eighth Pad L sustaining well pair were brought online.
* Successfully completed the drilling and workover program at the Bertam
Field, Malaysia during July 2025.
* 1.8 million IPC common shares repurchased and cancelled during Q2 2025 under
the normal course issuer bid (NCIB) and continuing with target to complete
the full 2024/2025 NCIB this year.
Q2 2025 Financial Highlights
* Operating costs per boe of USD 17.8 for Q2 2025, marginally below
guidance.(()(3)())
* Operating cash flow (OCF) generation of MUSD 55 for Q2 2025, in line with
guidance.(()(3)())
* Capital and decommissioning expenditures of MUSD 100 for Q2 2025, in line
with guidance.
* Free cash flow (FCF) generation for Q2 2025 amounted to MUSD -58 (MUSD 6
pre-Blackrod capital expenditures).(()(3)())
* Gross cash of MUSD 79 and net debt of MUSD 375 as at June 30, 2025.(()(3)())
* Net result of MUSD 14 for Q2 2025.
Reserves and Resources
* Total 2P reserves as at December 31, 2024 of 493 MMboe, with a reserve life
index (RLI) of 31 years.((1)()()(2)())
* Contingent resources (best estimate, unrisked) as at December 31, 2024 of
1,107 MMboe.((1)()(2)())
* 2P reserves net asset value (NAV) as at December 31, 2024 of MUSD 3,083 (10%
discount rate).(()(1)()()(2)())
2025 Annual Guidance
* Full year 2025 average net production guidance range forecast maintained at
43,000 to 45,000 boepd.((1)())
* Full year 2025 operating costs guidance range forecast maintained at USD 18
to 19 per boe.(()(3)())
* Full year 2025 OCF revised guidance estimated at between MUSD 245 and 260
(assuming Brent USD 60 to 75 per barrel for the remainder of 2025) from
previous guidance of between MUSD 240 and 270.(()(3)())((4))
* Full year 2025 capital and decommissioning expenditures guidance forecast
maintained at MUSD 320 (including MUSD 230 for the Blackrod asset).
* Full year 2025 FCF revised guidance estimated at between MUSD -135 and -120
(assuming Brent USD 60 to 75 per barrel for the remainder of 2025) from
previous guidance of between MUSD -135 and -110.(()(3)())((4))
Three months ended June Six months ended June
30 30
------------------------------------------------------------------------------
USD Thousands 2025 2024 2025 2024
------------------------------------------------------------------------------
Revenue 158,892 219,040 337,384 425,459
Gross profit 23,663 72,708 67,812 127,892
Net result 13,850 45,210 30,081 78,929
Operating cash flow (()(3)()) 54,873 101,941 129,663 191,242
Free cash flow (()(3)()) (58,252) 7,559 (101,424) (35,752)
EBITDA (()(3)()) 51,519 103,971 122,465 190,991
Net cash/(debt) (()(3)()) (374,977) (88,220) (374,977) (88,220)
------------------------------------------------------------------------------
During the second quarter of 2025, oil prices were volatile with Brent prices
ranging from lows of USD 60 per barrel to highs of over USD 77 per barrel. The
average Brent price for the quarter was approximately USD 68 per barrel, as
compared to just below USD 76 per barrel for the first quarter of 2025. This
second quarter volatility was driven by announcements early in the quarter by
OPEC and the OPEC+ group to increase supply in excess of expectations, at the
same time as the United States proposing high tariffs to countries deemed in a
trade surplus of US goods. The US then delayed implementation of these tariffs
which, combined with the increased conflicts in the Middle East, influenced
higher world oil prices in early June. From the end of the quarter and into July
2025, Brent prices have remained more stable in a range just below USD 70 per
barrel. Beyond the short-term shocks during the second quarter, global oil
inventories remain below the 5-year average, high geopolitical tensions
continue, and non-OPEC oil production (in particular in the US) is unlikely to
grow at current prices. These factors should be positive for future oil prices.
During this large expenditure year for the Blackrod Phase 1 project, IPC
continued to hedge oil prices in the second quarter of 2025 through zero cost
collars. IPC's oil hedges in total represent around 50% of our aggregate
forecast 2025 oil production at around USD 76 and USD 71 per barrel for Dated
Brent and West Texas Intermediate (WTI), respectively, as well as a WTI collar
between USD 65 and USD 75 per barrel, for the remainder of 2025.
In Canada, WTI to Western Canadian Select (WCS) crude price differentials during
the second quarter of 2025 averaged USD 10.2 per barrel. The WTI to WCS
differential has benefited from the TMX pipeline expansion and tightened as the
pipeline provides an alternative transportation route away from the US Gulf
Coast. There are currently no tariffs on Canadian crude oil exports to the
United States, which are covered by the US Mexico Canada free trade agreement.
IPC has hedged the WTI to WCS differential for approximately 50% of our forecast
2025 Canadian oil production at USD 14 per barrel for 2025.
Natural gas markets in Canada for the second quarter of 2025 remained weak. The
average AECO gas price was CAD 1.7 per Mcf for the second quarter of 2025 and
IPC achieved an average realized price of CAD 1.8 per Mcf during the quarter.
There is a potential for improved pricing for Canadian gas benchmark prices
following the start-up of the LNG Canada project in British Columbia, which may
relieve elevated Canadian gas inventories. Approximately 50% of our net long
exposure is hedged at CAD 2.4 per Mcf to end October 2025, dropping to around
15% for November and December at CAD 2.6 per mcf.
Second Quarter 2025 Highlights and Full Year 2025 Guidance
During the second quarter of 2025, our portfolio delivered average net
production of 43,600 boepd, in line with guidance. At Onion Lake Thermal, two
infill wells and a Pad L sustaining well pair were brought online in the
quarter. In Malaysia, the extended reach drilling and workover program was
successfully completed with the new infill well A21 and worked over well A15
brought on stream at the end of July. Early indications are in line with
expectations as the production wells go through an initial clean up and
stabilisation period. We maintain the full year 2025 average net production
guidance range of 43,000 to 45,000 boepd.((1))
Our operating costs per boe for the second quarter of 2025 was USD 17.8,
marginally below guidance. Full year 2025 operating expenditure guidance of USD
18.0 to 19.0 per boe remains unchanged.(()(3)())
Operating cash flow (OCF) generation for the second quarter of 2025 was MUSD
55. Full year 2025 OCF guidance is tightened to MUSD 245 to 260 (assuming Brent
USD 60 to 75 per barrel for the remainder of 2025).(()(3)())((4))
Capital and decommissioning expenditure for the second quarter of 2025 was MUSD
100 in line with guidance. Full year 2025 capital and decommissioning
expenditure of MUSD 320 is maintained.
Free cash flow (FCF) generation was MUSD -58 (MUSD 6 pre-Blackrod capital
expenditures) during the second quarter of 2025. Full year 2025 FCF guidance is
tightened to MUSD -135 to -120 (assuming Brent USD 60 to 75 per barrel for the
remainder of 2025) after taking into account MUSD 320 of forecast full year
2025 capital expenditures (including MUSD 230 relating to the Blackrod
asset).(()(3)())((4))
As at June 30, 2025, IPC's net debt position increased to MUSD 375, from a net
debt position of MUSD 314 as at March 31, 2025, mainly driven by the funding of
capital expenditures and the continuing share repurchase program (NCIB). Gross
cash as at June 30, 2025 amounts to MUSD 79 and IPC has access to a Canadian
revolving credit facility of greater than MUSD 180 (fully committed, available
and undrawn as at June 30, 2025), following the increase of that facility from
MCAD 180 to MCAD 250 during the second quarter. The access to liquidity supports
IPC to follow through on its key strategic objectives of enhancing stakeholder
value through organic growth, stakeholder returns, and pursuing value adding
M&A.((3))
Blackrod
The Blackrod asset is 100% owned by IPC and contains 259 MMboe of 2P reserves
and 1,025 MMboe of contingent resources (best estimate, unrisked) with
regulatory approval to produce up to 80,000 bopd. In early 2023, IPC sanctioned
the Phase 1 development targeting plateau production rates of 30,000 bopd with a
growth capital expenditure guidance of MUSD 850 and first oil expected in late
2026, marking the first major commercial Steam Assisted Gravity Drainage (SAGD)
development undertaken in Alberta since the mid to late 2010s. The multi-year
Phase 1 development guidance is maintained, with significant progress achieved
to date. Since the Phase 1 project sanction to the end of Q2 2025, capital
expenditures of MUSD 729 have been spent, or approximately 86% of the MUSD 850
growth capital guidance to first oil.((1))
All major work activities continued to advance in accordance with plan at the
Blackrod asset during the second quarter. The final Central Processing Facility
(CPF) module was delivered to site during the quarter, marking a significant
milestone achievement for the project. Mechanical, electrical and
instrumentation installations remain the key areas of focus for the CPF and well
pad facilities prior to start-up. IPC remains strongly positioned to deliver the
transformational Phase 1 development as planned. In parallel, with the
responsible Phase 1 development activity, IPC is progressing future resource
maturation works at Blackrod.
IPC intends to fund the remaining Blackrod capital expenditure with forecast
cash flow generated by its operations, cash on hand and drawing under the
existing Canadian credit facility if needed.((3))
Stakeholder Returns: Normal Course Issuer Bid
In Q4 2024, IPC announced the renewal of the NCIB, with the ability to
repurchase up to approximately 7.5 million common shares over the period of
December 5, 2024 to December 4, 2025. Under the 2024/2025 NCIB, IPC repurchased
and cancelled approximately 0.8 million common shares in December 2024, 5.5
million common shares during the first half of 2025, and a further 0.2 million
common shares purchased under other exemptions in Canada. The average price of
common shares repurchased under the 2024/2025 NCIB during the first half of
2025 was around SEK 140 / CAD 19 per share.
As at June 30, 2025, IPC had a total of 113,354,532 common shares issued and
outstanding and IPC held no common shares in treasury. As at July 31, 2025, IPC
had a total of 113,278,532 common shares issued and outstanding and IPC held no
common shares in treasury.
Notwithstanding the final major capital investment year at Blackrod in 2025, IPC
has purchased and cancelled approximately 85% of the maximum 7.5 million common
shares allowed under the 2024/2025 NCIB by the end of July 2025 and intends to
purchase and cancel the remaining 1.1 million common shares under that program
in 2025. This would result in the cancellation of 6.2% of common shares
outstanding as at the beginning of December 2024. IPC continues to believe that
reducing the number of shares outstanding in combination with investing in long-
life production growth at the Blackrod project will prove to be a winning
formula for our stakeholders.
Environmental, Social and Governance (ESG) Performance
Alongside the publication of our second quarter 2025 financial report, IPC
releases its sixth annual Sustainability Report. The Sustainability Report
provides details on IPC's approach to sustainability and material sustainability
topics highlighting specific initiatives and progress. The Sustainability Report
is available on IPC's website at www.international-petroleum.com.
During the second quarter of 2025, IPC recorded no material safety or
environmental incidents.
As previously announced, IPC targets a reduction of our net GHG emissions
intensity by the end of 2025 to 50% of IPC's 2019 baseline and IPC remains on
track to achieve this reduction. IPC has also made a commitment to maintain
2025 levels of 20 kg CO(2)/boe through to the end of 2028.(()(5)())
Notes:
(1) See "Supplemental Information regarding Product Types" in "Reserves and
Resources Advisory" below. See also the annual information form for the year
ended December 31, 2024 (AIF) available on IPC's website at www.international-
petroleum.com and under IPC's profile on SEDAR+ at www.sedarplus.ca.
(2) See "Reserves and Resources Advisory" below. Further information with
respect to IPC's reserves, contingent resources and estimates of future net
revenue, including assumptions relating to the calculation of net present value
(NPV), are described in the AIF. NAV is calculated as NPV less net debt of MUSD
209 as at December 31, 2024.
(3) Non-IFRS measures, see "Non-IFRS Measures" below and in the MD&A.
(4) OCF and FCF forecasts at Brent USD 60 and 75 per barrel assume Brent to
WTI differential of USD 3 and 5 per barrel, respectively, and WTI to WCS
differential of USD 10 and 15 per barrel, respectively, for the remainder of
2025. OCF and FCF forecasts assume gas price on average of CAD 1.25 per Mcf for
the third quarter of 2025 and CAD 2.50 per Mcf for the fourth quarter of 2025.
(5) Emissions intensity is the ratio between oil and gas production and the
associated carbon emissions, and net emissions intensity reflects gross
emissions less operational emission reductions and carbon offsets.
International Petroleum Corp. (IPC) is an international oil and gas exploration
and production company with a high quality portfolio of assets located in
Canada, Malaysia and France, providing a solid foundation for organic and
inorganic growth. IPC is a member of the Lundin Group of Companies. IPC is
incorporated in Canada and IPC's shares are listed on the Toronto Stock Exchange
(TSX) and the Nasdaq Stockholm exchange under the symbol "IPCO".
For further information, please contact:
Rebecca Gordon Robert Eriksson
SVP Corporate Planning and Investor Relations Media Manager
rebecca.gordon@international-petroleum.com reriksson@rive6.ch
Tel: +41 22 595 10 50 Or Tel: +46 701 11 26 15
This information is information that International Petroleum Corporation is
required to make public pursuant to the EU Market Abuse Regulation and the
Securities Markets Act. The information was submitted for publication, through
the contact persons set out above, at 07:30 CEST on August 5, 2025. The
Corporation's unaudited interim condensed consolidated financial statements
(Financial Statements) and management's discussion and analysis (MD&A) for the
three and six months ended June 30, 2025 have been filed on SEDAR+
(www.sedarplus.ca) and are also available on the Corporation's website
(www.international-petroleum.com).
Forward-Looking Statements
This press release contains statements and information which constitute
"forward-looking statements" or "forward-looking information" (within the
meaning of applicable securities legislation). Such statements and information
(together, "forward-looking statements") relate to future events, including the
Corporation's future performance, business prospects or opportunities. Actual
results may differ materially from those expressed or implied by forward-looking
statements. The forward-looking statements contained in this press release are
expressly qualified by this cautionary statement. Forward-looking statements
speak only as of the date of this press release, unless otherwise indicated. IPC
does not intend, and does not assume any obligation, to update these forward-
looking statements, except as required by applicable laws.
All statements other than statements of historical fact may be forward-looking
statements. Any statements that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, forecasts, guidance,
budgets, objectives, assumptions or future events or performance (often, but not
always, using words or phrases such as "seek", "anticipate", "plan", "continue",
"estimate", "expect", "may", "will", "project", "forecast", "predict",
"potential", "targeting", "intend", "could", "might", "should", "believe",
"budget" and similar expressions) are not statements of historical fact and may
be "forward-looking statements".
Forward-looking statements include, but are not limited to, statements with
respect to:
* 2025 production ranges (including total daily average production),
production composition, cash flows, operating costs and capital and
decommissioning expenditure estimates;
* Estimates of future production, cash flows, operating costs and capital
expenditures that are based on IPC's current business plans and assumptions
regarding the business environment, which are subject to change;
* IPC's financial and operational flexibility to navigate the Corporation
through periods of volatile commodity prices;
* The ability to fully fund future expenditures from cash flows and current
borrowing capacity;
* IPC's intention and ability to continue to implement its strategies to build
long-term shareholder value;
* The ability of IPC's portfolio of assets to provide a solid foundation for
organic and inorganic growth;
* The continued facility uptime and reservoir performance in IPC's areas of
operation;
* Development of the Blackrod project in Canada, including estimates of
resource volumes, future production, timing, regulatory approvals, third
party commercial arrangements, breakeven oil prices and net present values;
* Current and future production performance, operations and development
potential of the Onion Lake Thermal, Suffield, Brooks, Ferguson and Mooney
operations, including the timing and success of future oil and gas drilling
and optimization programs;
* The potential improvement in the Canadian oil egress situation and IPC's
ability to benefit from any such improvements;
* The ability to maintain current and forecast production in France and
Malaysia;
* The intention and ability of IPC to acquire further Common Shares under the
NCIB, including the timing of any such purchases;
* The return of value to IPC's shareholders as a result of the NCIB;
* IPC's ability to implement its greenhouse gas (GHG) emissions intensity and
climate strategies and to achieve its net GHG emissions intensity reduction
targets;
* IPC's ability to implement projects to reduce net emissions intensity,
including potential carbon capture and storage;
* Estimates of reserves and contingent resources;
* The ability to generate free cash flows and use that cash to repay debt;
* IPC's continued access to its existing credit facilities, including current
financial headroom, on terms acceptable to the Corporation;
* IPC's ability to identify and complete future acquisitions;
* Expectations regarding the oil and gas industry in Canada, Malaysia and
France, including assumptions regarding future royalty rates, regulatory
approvals, legislative changes, tariffs, and ongoing projects and their
expected completion; and
* Future drilling and other exploration and development activities.
Statements relating to "reserves" and "contingent resources" are also deemed to
be forward-looking statements, as they involve the implied assessment, based on
certain estimates and assumptions, that the reserves and resources described
exist in the quantities predicted or estimated and that the reserves and
resources can be profitably produced in the future. Ultimate recovery of
reserves or resources is based on forecasts of future results, estimates of
amounts not yet determinable and assumptions of management.
The forward-looking statements are based on certain key expectations and
assumptions made by IPC, including expectations and assumptions concerning: the
potential impact of tariffs implemented in 2025 by the U.S. and Canadian
governments and that other than the tariffs that have been implemented, neither
the U.S. nor Canada (i) increases the rate or scope of such tariffs, or imposes
new tariffs, on the import of goods from one country to the other, including on
oil and natural gas, and/or (ii) imposes any other form of tax, restriction or
prohibition on the import or export of products from one country to the other,
including on oil and natural gas; prevailing commodity prices and currency
exchange rates; applicable royalty rates and tax laws; interest rates; future
well production rates and reserve and contingent resource volumes; operating
costs; our ability to maintain our existing credit ratings; our ability to
achieve our performance targets; the timing of receipt of regulatory approvals;
the performance of existing wells; the success obtained in drilling new wells;
anticipated timing and results of capital expenditures; the sufficiency of
budgeted capital expenditures in carrying out planned activities; the timing,
location and extent of future drilling operations; the successful completion of
acquisitions and dispositions and that we will be able to implement our
standards, controls, procedures and policies in respect of any acquisitions and
realize the expected synergies on the anticipated timeline or at all; the
benefits of acquisitions; the state of the economy and the exploration and
production business in the jurisdictions in which IPC operates and globally; the
availability and cost of financing, labour and services; our intention to
complete share repurchases under our normal course issuer bid program, including
the funding of such share repurchases, existing and future market conditions,
including with respect to the price of our common shares, and compliance with
respect to applicable limitations under securities laws and regulations and
stock exchange policies; and the ability to market crude oil, natural gas and
natural gas liquids successfully.
Although IPC believes that the expectations and assumptions on which such
forward-looking statements are based are reasonable, undue reliance should not
be placed on the forward-looking statements because IPC can give no assurances
that they will prove to be correct. Since forward-looking statements address
future events and conditions, by their very nature they involve inherent risks
and uncertainties. Actual results could differ materially from those currently
anticipated due to a number of factors and risks.
These include, but are not limited to: general global economic, market and
business conditions; the risks associated with the oil and gas industry in
general such as operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or development projects
or capital expenditures; the uncertainty of estimates and projections relating
to reserves, resources, production, revenues, costs and expenses; health, safety
and environmental risks; commodity price fluctuations; interest rate and
exchange rate fluctuations; marketing and transportation; loss of markets;
environmental and climate-related risks; competition; innovation and
cybersecurity risks related to our systems, including our costs of addressing or
mitigating such risks; the ability to attract, engage and retain skilled
employees; incorrect assessment of the value of acquisitions; failure to
complete or realize the anticipated benefits of acquisitions or dispositions;
the ability to access sufficient capital from internal and external sources;
failure to obtain required regulatory and other approvals; geopolitical
conflicts, including the war between Ukraine and Russia and the conflict in the
Middle East, and their potential impact on, among other things, global market
conditions; political or economic developments, including, without limitation,
the risk that (i) one or both of the U.S. and Canadian governments increases the
rate or scope of tariffs implemented in 2025, or imposes new tariffs on the
import of goods from one country to the other, including on oil and natural gas,
(ii) the U.S. and/or Canada imposes any other form of tax, restriction or
prohibition on the import or export of products from one country to the other,
including on oil and natural gas, and (iii) the tariffs imposed by the U.S. on
other countries and responses thereto could have a material adverse effect on
the Canadian, U.S. and global economies, and by extension the Canadian oil and
natural gas industry and the Corporation; and changes in legislation, including
but not limited to tax laws, royalties, environmental and abandonment
regulations. Readers are cautioned that the foregoing list of factors is not
exhaustive.
Additional information on these and other factors that could affect IPC, or its
operations or financial results, are included in the MD&A (See "Risk Factors",
"Cautionary Statement Regarding Forward-Looking Information" and "Reserves and
Resources Advisory"), the Corporation's Annual Information Form (AIF) for the
year ended December 31, 2024, (See "Cautionary Statement Regarding Forward-
Looking Information", "Reserves and Resources Advisory" and "Risk Factors") and
other reports on file with applicable securities regulatory authorities,
including previous financial reports, management's discussion and analysis and
material change reports, which may be accessed through the SEDAR+ website
(www.sedarplus.ca) or IPC's website (www.international-petroleum.com).
Management of IPC approved the production, operating costs, operating cash flow,
capital and decommissioning expenditures and free cash flow guidance and
estimates contained herein as of the date of this press release. The purpose of
these guidance and estimates is to assist readers in understanding IPC's
expected and targeted financial results, and this information may not be
appropriate for other purposes.
Estimated production and FCF generation are based on IPC's current business
plans over the periods of 2025 to 2029 and 2030 to 2034, less net debt of USD
209 million as at December 31, 2024, with assumptions based on the reports of
IPC's independent reserves evaluators, and including certain corporate
adjustments relating to estimated general and administration costs and hedging,
and excluding shareholder distributions and financing costs. Assumptions include
average net production of approximately 57 Mboepd over the period of 2025 to
2029, average net production of approximately 63 Mboepd over the period of 2030
to 2034, average Brent oil prices of USD 75 to 95 per bbl escalating by 2% per
year, and average Brent to Western Canadian Select differentials and average gas
prices as estimated by IPC's independent reserves evaluator and as further
described in the AIF. IPC's current business plans and assumptions, and the
business environment, are subject to change. Actual results may differ
materially from forward-looking estimates and forecasts.
Non-IFRS Measures
References are made in this press release to "operating cash flow" (OCF), "free
cash flow" (FCF), "Earnings Before Interest, Tax, Depreciation and Amortization"
(EBITDA), "operating costs" and "net debt"/"net cash", which are not generally
accepted accounting measures under International Financial Reporting Standards
(IFRS) and do not have any standardized meaning prescribed by IFRS and,
therefore, may not be comparable with similar measures presented by other public
companies. Non-IFRS measures should not be considered in isolation or as a
substitute for measures prepared in accordance with IFRS.
The definition of each non-IFRS measure is presented in IPC's MD&A (See "Non-
IFRS Measures" therein).
Operating cash flow
The following table sets out how operating cash flow is calculated from figures
shown in the Financial Statements:
Three months ended June Six months ended June
30 30
------------------------------------------------
USD Thousands 2025 2024 2025 2024
-------------------------------------------------------------------------------
Revenue 158,892 219,040 337,384 425,459
Production costs and net sales
of diluent to third party(1) (103,682) (111,381) (206,870) (227,126)
Current tax (337) (5,718) (851) (7,091)
------------------------------------------------
Operating cash flow 54,873 101,941 129,663 191,242
-------------------------------------------------------------------------------
(1) Includes net sales of diluent to third party amounting to USD 228 thousand
for the second quarter of 2025 and USD 419 thousand for the first six months of
2025.
Free cash flow
The following table sets out how free cash flow is calculated from figures shown
in the Financial Statements:
Three months ended June Six months ended June
30 30
------------------------------------------------
USD Thousands 2025 2024 2025 2024
-------------------------------------------------------------------------------
Operating cash flow - see
above 54,873 101,941 129,663 191,242
Capital expenditures (97,925) (84,101) (196,811) (209,357)
Abandonment and farm-in
expenditures(1) (2,097) (2,241) (2,418) (2,363)
General, administration and
depreciation expenses before
depreciation(2) (3,691) (3,689) (8,049) (7,342)
Cash financial items(3) (9,412) (4,351) (23,809) (7,932)
------------------------------------------------
Free cash flow (58,252) 7,559 (101,424) (35,752)
-------------------------------------------------------------------------------
(1 )See note 16 to the Financial Statements
(2 )Depreciation is not specifically disclosed in the Financial Statements
(3 )See notes 4 and 5 to the Financial Statements
EBITDA
The following table sets out the reconciliation from net result from the
consolidated statement of operations to EBITDA:
Three months ended June Six months ended June
30 30
------------------------------------------------
USD Thousands 2025 2024 2025 2024
-------------------------------------------------------------------------------
Net result 13,850 45,210 30,081 78,929
Net financial items (159) 10,048 18,696 19,818
Income tax 6,167 13,470 10,846 21,216
Depletion and decommissioning
costs 29,321 32,661 58,337 65,814
Depreciation of other tangible
fixed assets 1,461 2,218 3,378 4,480
Exploration and business
development costs 537 72 568 147
Sale of assets(1) (10) - (104) -
Depreciation included in
general, administration and
depreciation expenses(2) 352 292 663 587
------------------------------------------------
EBITDA 51,519 103,971 122,465 190,991
-------------------------------------------------------------------------------
(1) Sale of assets is included under "Other income/(expense)" but not
specifically disclosed in the Financial Statements
(2) Item is not shown in the Financial Statements
Operating costs
The following table sets out how operating costs is calculated:
Three months ended June Six months ended June
30 30
------------------------------------------------
USD Thousands 2025 2024 2025 2024
-----------------------------------------------------------------------------
Production costs 103,910 111,381 207,289 227,126
Cost of blending (33,269) (41,675) (70,995) (86,881)
Change in inventory position (119) (4,872) 3,381 405
------------------------------------------------
Operating costs 70,522 64,834 139,675 140,650
-----------------------------------------------------------------------------
Net cash/(debt)
The following table sets out how net cash / (debt) is calculated from figures
shown in the Financial Statements:
USD Thousands June 30, 2025 December 31, 2024
----------------------------------------------------------------
Bank loans (3,863) (5,121)
Bonds(1) (450,000) (450,000)
Cash and cash equivalents 78,886 246,593
------------------------------------
Net cash/(debt) (374,977) (208,528)
----------------------------------------------------------------
(1 )The bond amount represents the redeemable value at maturity (February 2027).
Reserves and Resources Advisory
This press release contains references to estimates of gross and net reserves
and resources attributed to the Corporation's oil and gas assets. For additional
information with respect to such reserves and resources, refer to "Reserves and
Resources Advisory" in the MD&A. Light, medium and heavy crude oil
reserves/resources disclosed in this press release include solution gas and
other by-products. Also see "Supplemental Information regarding Product Types"
below.
Reserve estimates, contingent resource estimates and estimates of future net
revenue in respect of IPC's oil and gas assets in Canada are effective as of
December 31, 2024, and are included in the reports prepared by Sproule
Associates Limited (Sproule), an independent qualified reserves evaluator, in
accordance with National Instrument 51-101 - Standards of Disclosure for Oil and
Gas Activities (NI 51-101) and the Canadian Oil and Gas Evaluation Handbook (the
COGE Handbook) and using Sproule's December 31, 2024 price forecasts.
Reserve estimates, contingent resource estimates and estimates of future net
revenue in respect of IPC's oil and gas assets in France and Malaysia are
effective as of December 31, 2024, and are included in the report prepared by
ERC Equipoise Ltd. (ERCE), an independent qualified reserves auditor, in
accordance with NI 51-101 and the COGE Handbook, and using Sproule's December
31, 2024 price forecasts.
The price forecasts used in the Sproule and ERCE reports are available on the
website of Sproule (sproule.com) and are contained in the AIF. These price
forecasts are as at December 31, 2024 and may not be reflective of current and
future forecast commodity prices.
The reserve life index (RLI) is calculated by dividing the 2P reserves of 493
MMboe as at December 31, 2024 by the mid-point of the 2025 CMD production
guidance of 43,000 to 45,000 boepd.
IPC uses the industry-accepted standard conversion of six thousand cubic feet of
natural gas to one barrel of oil (6 Mcf = 1 bbl). A BOE conversion ratio of 6:1
is based on an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead. As the
value ratio between natural gas and crude oil based on the current prices of
natural gas and crude oil is significantly different from the energy equivalency
of 6:1, utilizing a 6:1 conversion basis may be misleading as an indication of
value.
Supplemental Information regarding Product Types
The following table is intended to provide supplemental information about the
product type composition of IPC's net average daily production figures provided
in this press release:
Light and
Medium Crude Conventional Natural
Heavy Crude Oil Oil Gas Total
(Mbopd) (Mbopd) (per day) (Mboepd)
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Three months
ended
89.8 MMcf
June 30, 2025 22.7 5.9 (15.0 Mboe) 43.6
96.5 MMcf
June 30, 2024 24.3 8.0 (16.1 Mboe) 48.4
Six months ended
89.0 MMcf
June 30, 2025 23.0 6.2 (14.8 Mboe) 44.0
96.2 MMcf
June 30, 2024 24.6 8.0 (16.0 Mboe) 48.6
Year ended
December 95.1 MMcf
31, 2024 23.9 7.7 (15.8 Mboe) 47.4
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This press release also makes reference to IPC's forecast total average daily
production of 43,000 to 45,000 boepd for 2025. IPC estimates that approximately
52% of that production will be comprised of heavy oil, approximately 15% will be
comprised of light and medium crude oil and approximately 33% will be comprised
of conventional natural gas.
Currency
All dollar amounts in this press release are expressed in United States dollars,
except where otherwise noted. References herein to USD mean United States
dollars and to MUSD mean millions of United States dollars. References herein to
CAD mean Canadian dollars.