International Petroleum (IPCO) Q3 2024 earnings summary

Executive summary

• Q3 2024 average production was 45,000 BOE/day, in line with guidance; year-to-date average is 47,400 BOE/day, supporting full-year guidance of 46,000–48,000 BOE/day.

• Production mix is 49% heavy crude, 17% light/medium crude, and 34% natural gas; 14% Brent-weighted.

• No material safety or environmental incidents year-to-date; on track for 50% net emissions intensity reduction by 2025, extended through 2028.

• Q3 operating costs were $17.9/boe, below guidance; full-year forecast revised to below $18/boe.

• Q3 operating cash flow was $73M; free cash flow was -$38M, mainly due to Blackrod Phase 1 funding; net debt at quarter-end was $157M, with gross cash of $299M.

Financial highlights

• Q3 2024 revenue was $173.2M; nine-month revenue was $598.7M.

• Q3 2024 net result was $22.9M; nine-month net result was $101.8M.

• Q3 2024 EBITDA was $68.3M; year-to-date EBITDA $259.3M.

• Q3 capital and decommissioning expenditure was $101.7M; year-to-date $313M.

• Q3 free cash flow was -$38.3M; year-to-date FCF is -$74M, mainly due to Blackrod CapEx.

Outlook and guidance

• 2024 production and CapEx guidance maintained at 46,000–48,000 BOE/day and $437M, respectively.

• Full-year 2024 OCF guidance is $335–342M, assuming Brent $70–80/bbl.

• Full-year 2024 FCF guidance is -$140M to -$133M including Blackrod, or $220–$230M excluding it.

• 2025 CapEx expected to be lower, with ~$250M remaining for Blackrod; formal guidance pending board approval.

• Operating cost per BOE re-guided to below $18 for 2024.