International Petroleum (IPCO) Q2 2024 earnings summary

Executive summary

• Q2 2024 net production averaged 48,400 boepd, in line with guidance; H1 2024 average was 48,600 boepd.

• Operating costs in Q2 were $14.7/boe, below guidance; H1 2024 averaged $15.9/boe.

• Operating cash flow for Q2 was $102M, with H1 2024 at $191M; free cash flow for Q2 was $7.6M.

• Net result for Q2 was $45.2M, and net debt at June 30, 2024, stood at $88M; gross cash: $369M.

• Share repurchase program continued, with 4.9M shares bought back in H1 2024 and 66M since inception.

Financial highlights

• Q2 2024 revenue was $219M; H1 2024 revenue reached $425.5M.

• Q2 2024 EBITDA was $104M; H1 2024 EBITDA totaled $191M.

• First half CapEx: $212M, with $163M allocated to Blackrod; full-year CapEx guidance at $437M.

• Q2 2024 free cash flow: $7.6M; H1 2024: $(35.8)M; full-year FCF guidance (including Blackrod): $(146)M to $(123)M at $70–$90 Brent.

• Operating costs below CAD 15/BOE in Q2; full-year OpEx expected at low end of $18–$19/BOE range.

Outlook and guidance

• 2024 production and CapEx guidance unchanged; robust cash flow expected to continue.

• Blackrod Phase I on track for first oil in late 2026, with $850M budget to first oil; nearly half spent to date.

• Free cash flow guidance narrowed and improved at the high end due to lower OpEx and deferred maintenance.

• Full-year OCF guidance revised to $327–350M, assuming Brent $70–90/bbl.