International Petroleum (IPCO) CMD 2025 summary

Strategic Overview and Growth

• Achieved record investment in 2024, with $442 million in capital and decommissioning expenditure, mainly for Blackrod Phase 1, which remains on schedule and budget.

• 2024 production was 47,400 BOE/day, in line with guidance; 2025 guidance is 43,000–45,000 BOE/day, with a five-year plan targeting ~57,000 BOE/day and >50% growth by 2028 as Blackrod ramps up.

• 2P reserves reached a record 493 million BOE at year-end 2024, a 17x increase since 2017, with a reserve life index of 31 years and a 251% reserve replacement ratio.

• Net asset value has grown 6x since 2017 to $3.1 billion (287 SEK/share), with major contingent resource additions, especially at Blackrod.

• Five accretive acquisitions since 2017 have generated $1.06 billion in free cash flow and have a point-forward value exceeding $2.7 billion.

Financial Guidance and Capital Allocation

• 2024 operating cash flow was $342 million; free cash flow was negative $135 million due to growth CapEx, but base business generated $216 million in free cash flow.

• Net debt stands at $209 million, with $247 million in cash and an undrawn CAD 180 million revolving credit facility, ensuring strong liquidity.

• 2025 CapEx is $320 million, with 70–73% allocated to Blackrod; operating costs are guided at $18–$19/BOE.

• Hedging covers roughly 40% of Brent and WTI exposure for 2025, reducing cash flow volatility.

• Free cash flow over 2025–2029 projected at >$2 billion, with $1.2–2 billion targeted for stakeholder returns and M&A; 10-year cumulative free cash flow is $2.8–4.6 billion.

Blackrod Project and Future Development

• Blackrod Phase 1 targets 30,000 BOE/day, with first steam in Q1 2026 and first oil later that year; plateau expected by 2028, maintaining for about a decade.

• CapEx for Phase 1 is $850 million, with 70–73% spent by end 2024; remaining spend in 2025–2026 is mainly for drilling and commissioning.

• 2P reserves at Blackrod Phase 1 increased from 218 to 259 million barrels; over 1 billion barrels of contingent resources remain.

• Project execution is on schedule and budget, with major engineering, site works, and drilling ahead of plan; third-party pipeline construction progressing.

• Phase 2 is under concept selection, considering a standalone 30,000 BOE/day facility, with potential synergies and timing likely before 2030.