International Petroleum (IPCO) Q1 2025 earnings summary

Executive summary

• Q1 2025 net production averaged 44,400 BOE/day, in line with guidance; full-year guidance maintained at 43,000–45,000 BOE/day.

• Operating costs for Q1 were $17.3/BOE, below guidance; full-year OpEx guidance remains $18–$19/BOE.

• Q1 operating cash flow was $74.8 million; free cash flow was -$43.2 million, reflecting front-loaded Blackrod Phase 1 CapEx.

• Net debt stood at $314 million as of March 31, 2025, with $140 million in gross cash and a fully undrawn CAD 180 million credit facility.

• No material safety or environmental incidents reported in Q1; share buyback program 73%–75% complete.

Financial highlights

• Q1 2025 revenue was $178.5 million, gross profit $44.2 million, and net profit $16.2 million.

• EBITDA for Q1 was $70.9 million, down from $87.0 million in Q1 2024.

• Q1 operating cash flow was $74.8 million, down from $90 million year-over-year due to lower production and prices.

• Q1 free cash flow before Blackrod CapEx was just under $40 million; after Blackrod CapEx, -$43.2 million.

• Capital and decommissioning expenditure in Q1 totaled $99.2 million, with $77 million for Blackrod Phase 1.

Outlook and guidance

• Full-year 2025 production guidance maintained at 43,000–45,000 BOE/day.

• Full-year OpEx guidance per BOE is $18–$19.

• 2025 CapEx forecast is $320 million, with nearly one-third spent in Q1; Blackrod Phase 1 is the main growth driver.

• Full-year operating cash flow expected between $240–$270 million at Brent $60–$75.

• Full-year free cash flow forecast (including Blackrod CapEx) is -$110 to -$135 million at Brent $60–$75.