International Petroleum (IPCO) Q4 2024 earnings summary

Executive summary

• Achieved record investment in 2024 with $442 million total capex, including $351 million for Blackrod Phase I, advancing the project on schedule and budget.

• Annual production averaged 47,400 boepd, above guidance, with 51% heavy crude, 15% light/medium crude, and 34% natural gas.

• Operating cash flow reached $342 million, while free cash flow was negative $135 million due to major project investments.

• Net income for 2024 was $102.2 million, with year-end net debt of $209 million and gross cash of $247 million.

• Completed repurchase of 8.3 million shares under NCIB, with further buybacks ongoing and 24% reduction in shares since 2022.

Financial highlights

• 2024 revenue was $797.8 million, with EBITDA of $335.5 million and net profit of $102.2 million.

• Operating costs averaged $17.0/boe for the year and $18.2/boe in Q4, both within or below guidance.

• Netback for 2024 was $19.3/boe EBITDA and $19.7/boe operating cash flow.

• Free cash flow from base business was $216 million, a 15% yield.

• Earnings per share for 2024 were $0.82 (basic) and $0.81 (diluted).

Outlook and guidance

• 2025 production guidance is 43,000–45,000 boepd, with operating costs forecast at $18–19/boe.

• 2025 capital and decommissioning expenditure budgeted at $320 million, with $230 million for Blackrod.

• 2025 OCF guidance: $210–280 million (Brent $65–85/bbl); FCF before Blackrod capex: $80–150 million.

• On track to achieve a 50% net emissions intensity reduction by 2025, with targets extended to 2028.

• 2025–2029 business plan targets average production of 57,000 boepd and FCF of $1.2–2.0 billion (Brent $75–95/bbl).