International Petroleum (IPCO) Q1 2026 earnings summary

Executive summary

• Q1 2026 production averaged 43,000 BOE/day, at the high end of guidance, with strong operational performance and cost discipline; production mix was 52% heavy crude, 15% light/medium crude, and 33% natural gas.

• Full-year production guidance remains at 44,000–47,000 BOE/day, with Blackrod Phase I expected to drive a material increase in H2 2026; Blackrod Phase I is ahead of schedule, with first oil expected in Q3 2026.

• Capital expenditure guidance for 2026 increased to $163 million, mainly for accelerated drilling in Canada and France, with cumulative Blackrod spend at $842 million.

• No material safety or environmental incidents occurred in Q1 2026.

• Net debt rose to $513 million at quarter-end, mainly due to Blackrod project funding; Canadian credit facility expanded to $250 million and extended to 2028.

Financial highlights

• Q1 2026 revenue was $173 million, with operating cash flow of $67.7 million, EBITDA of $64.3 million, and gross profit of $37.2 million.

• Q1 free cash flow was negative $17.1 million due to front-loaded CapEx; positive free cash flow expected in H2 2026.

• Net profit for Q1 was $12.8 million.

• Operating costs per BOE were $17.6, below guidance.

• Net debt increased from $483.6 million at year-end 2025 to $513.5 million at March 31, 2026.

Outlook and guidance

• Full-year 2026 production guidance maintained at 44,000–47,000 BOE/day, with a significant increase expected in H2 as Blackrod comes online.

• Operating cost guidance unchanged at $18–20/BOE.

• OCF guidance raised to $220–340 million (Brent $70–90/bbl); FCF guidance revised to $0–120 million.

• Capital and decommissioning expenditure guidance increased to $163 million.

• Capital allocation will balance organic growth, M&A, and shareholder returns post-Blackrod.