International Petroleum Corporation Announces Third Quarter 2025 Financial and Operational Results and Blackrod Phase 1 Development Progressing Ahead of Schedule

Executive Summary

• IPC reported Q3 2025 average net production of 45,900 boepd, beating guidance and supporting a raised outlook for first steam at Blackrod by year‑end 2025 and first oil in Q3 2026.
• Financial results showed operating cash flow of US$66 M, free cash flow of –US$23 M (pre‑Blackrod capex + US$36 M), net income of US$4 M, and a net debt position of US$435 M.
• The company refinanced its US$450 M unsecured bond issue, extending maturity to Oct 2030 at a 7.5% coupon, and confirmed continued access to a CAD 250 M revolving credit facility.

Key Details

• Production: Avg. 45,900 boepd (53% heavy crude, 14% light/medium crude, 33% natural gas).
• Operating Costs: US$17.9 per boe for Q3 2025, marginally below guidance.
• Operating Cash Flow (OCF): US$66 M for the quarter, in line with guidance.
• Free Cash Flow (FCF): –US$23 M (pre‑Blackrod capex + US$36 M).
• Capital & Decommissioning Expenditures: US$82 M for Q3 2025; full‑year 2025 capex guidance revised to US$340 M (up from US$320 M) due to accelerated Blackrod drilling.
• Net Debt / Cash: Net debt US$435 M (up from US$375 M); gross cash US$45 M as of Sep‑30‑2025.
• Bond Refinancing: Re‑issued US$450 M unsecured bonds, maturity Oct 2030, coupon 7.5% (vs prior 7.25%). No change to overall leverage; refinancing captured favorable market conditions.
• Credit Facility: Canadian revolving credit facility CAD 250 M (~US$180 M) with CAD 37 M drawn as of Sep‑30‑2025.
• Blackrod Phase 1: Construction of CPF near completion, commissioning ahead of schedule; first steam now expected by Dec 2025, first oil by Q3 2026 (a quarter earlier than previously guided). Remaining growth capex US$850 M remains unchanged; US$785 M spent to date (~92% of guidance).
• Onion Lake Thermal: Final two of four planned production infill wells and final Pad L sustaining well pair brought online.
• Share Repurchase (NCIB): Completed 2024/2025 normal course issuer bid, repurchasing ~7.5 M shares (≈6.2% of outstanding). Board seeks TSX approval to renew NCIB for Dec 2025‑Dec 2026, targeting up to another ≈6.5 M shares (~5.8% of float).
• Guidance Updates (Full Year 2025):
• Production: 43,000–45,000 boepd (unchanged).
• Operating Costs: US$18‑19 per boe (unchanged).
• OCF: US$245‑255 M (tightened).
• Capital Expenditures: US$340 M (up from US$320 M).
• FCF: –US$170 to –US$160 M (revised lower due to higher capex and bond refinancing).
• Hedging: ~50% of forecast 2025 oil production hedged at USD 76/boe (Dated Brent) and USD 71/boe (WTI); WTI collar USD 65‑75/boe. Canadian gas price hedge covering ~50% of net long exposure at CAD 2.4/MCf to Oct 2025, plus additional short‑term hedges.

Notable Quotes

• William Lundin, President & CEO: “We are pleased to report another strong quarter for IPC…first steam by year end 2025 and first oil by Q3 2026, a quarter earlier than originally guided.”

All forward‑looking statements are subject to the usual risks and uncertainties disclosed in the MD&A.