International Petroleum (IPCO) CMD 2026 summary

Strategic outlook and growth plans

• Blackrod Phase 1, a major oil sands project in Alberta, achieved first steam in December 2025 and is set for first oil in Q3 2026, ramping to 30,000 barrels/day by end-2027, with future phases and regulatory approval for an additional 50,000 barrels/day under evaluation.

• Production guidance for 2026 is 44,000–47,000 barrels of oil equivalent/day, with a five-year average target of 62,000 barrels/day and over 50% production growth by 2028, primarily driven by Blackrod’s ramp-up.

• The company maintains flexibility for future expansions at Blackrod and other assets, balancing capital allocation between growth, buybacks, and potential dividends, and evaluating significant unbooked projects.

• M&A remains a strategic pillar, with a preference for cash-flowing, low-leverage assets in existing or adjacent geographies.

• Share repurchase programs have reduced outstanding shares by over 27% since 2022, with the NCIB renewed for up to 6.5 million shares and more than $1 billion in value created.

Financial guidance and capital allocation

• 2025 saw $344 million in capex, with Blackrod Phase 1 nearly complete and only $30 million left for 2026; total 2026 capex is $122 million, mostly for Blackrod, with 77% allocated to the project.

• Operating costs are guided at $18–20/BOE for 2026, expected to decline as Blackrod ramps up; long-term sustaining capex is projected at $5/BOE.

• Bond refinancing in late 2025 extended maturity to 2030, with $450 million refinanced and a CAD 200–250 million revolving credit facility available.

• Break-even for Blackrod Phase 1 is $47 WTI, with NAV for 2P reserves at $2.2–3.1 billion and NPV10 at $2.7 billion, with significant upside from contingent resources.

• Hedging for 2026 includes Brent, WTI, WCS differentials, and AECO gas, providing downside protection on key price exposures.

Operational performance and asset development

• 2025 production was 44.9 thousand BOE/day, near the high end of guidance, with strong cost control and $259 million in operating cash flow.

• 2P reserves increased to 521 million BOE at end-2025, with a 277% reserves replacement ratio and a reserve life index of 31 years; contingent resources rose to 1,224 million BOE.

• Blackrod’s development uses steam-assisted gravity drainage (SAGD), with 40 well pairs and six sustaining wells, targeting 60% oil recovery and leveraging modular construction for efficiency.

• Other Canadian assets (Onion Lake, Suffield, Mooney, Ferguson) and international assets in Malaysia and France continue to deliver stable production and high uptime, with infill drilling and EOR projects.

• Blackrod Phase 1 is fully sanctioned, with staged commissioning and progressive ramp-up; future expansion options include tie-backs and new processing facilities.