International Petroleum (IPCO) Q2 2026 earnings summary

Executive summary

• Q2 2026 average net production was 42,200 BOE/D, in line with guidance; 1H 2026 average was 42,600 BOE/D, with stable operations across all regions.

• Full-year 2026 production guidance remains at 44,000–47,000 BOE/D, with production growth forecast for 2H 2026.

• Achieved first oil at Blackrod Phase 1 ahead of schedule and on budget, marking a major organic growth milestone with phased ramp-up through 2H 2026.

• Revenue for Q2 2026 was $185.7 million, up 17% year-over-year; six-month revenue reached $358.7 million, a 6% increase from the prior year.

• Net income for Q2 2026 was $9.9 million, down from $13.9 million in Q2 2025; six-month net income was $22.7 million.

Financial highlights

• Q2 2026 operating cash flow was $67 million; 1H 2026 OCF totaled $134.3 million.

• Q2 2026 free cash flow was $3.9 million; 1H 2026 FCF was $9.9 million.

• Q2 2026 operating costs were $19.10/BOE; 1H 2026 at $18.4/BOE; full-year OpEx guidance remains $18–$20/BOE.

• Q2 2026 gross profit was $38.1 million, up from $23.7 million in Q2 2025; six-month gross profit was $75.3 million.

• Net debt at June 30, 2026, was $509 million, with over $150 million in undrawn credit available.

Outlook and guidance

• Full-year 2026 production and cost guidance maintained; production ramp-up expected in H2 and into 2027, driven by Blackrod and investments in existing assets.

• 2026 OCF forecast is $230–330 million, and FCF forecast is $10–110 million, assuming Brent at $70–90/bbl.

• CapEx flexibility retained for H2; full-year CapEx guidance at $163 million.

• 2027 budget details to be released at Capital Markets Day, with ongoing review of incremental value-adding activities.

• Preparing for IFRS 18 adoption in 2027; no material impact from recent IFRS 9 amendments expected.