International Petroleum Corporation Announces 2025 Year-End Financial and Operational Results and 2026 Budget, Reserves and Guidance

Executive Summary

• IPC released FY 2025 financial and operating results together with MD&A, showing full‑year average net production of 44,900 boepd (high end of guidance) and a positive full‑year net result of $29 M.
• The company announced its 2026 budget: capital & decommissioning spend of US$122 million (≈ US$90 M for Blackrod Phase 1), production guidance of 44,000–47,000 boepd, and operating‑cost guidance of US$18–20 per boe.
• IPC highlighted the Blackrod Phase 1 development – first steam injection completed Dec 2025, first oil expected Q3 2026 (a quarter ahead of prior guidance) and a remaining US$30 M growth‑capital budget to reach first oil.

Key Details

• Financial Highlights FY 2025
• Revenue: US$176.2 M (down from US$199.1 M YoY).
• Gross profit: US$28.2 M (down from US$42.8 M).
• Net result: US$29 M positive (vs. a loss of US$4.5 M in Q4).
• Operating cash flow: US$259 M for the year (above guidance range US$245‑255 M).
• Free cash flow: negative US$153 M, better than the guidance range of –US$160 to –US$170 M.
• Capital & decommissioning spend: US$344 M (in line with guidance).

• Net debt at 31 Dec 2025: US$484 M; revolving credit facility CAD 250 M (≈ CAD 200 M undrawn).

• Production Highlights FY 2025

• Average net production Q4 2025: 45,600 boepd (in line with guidance).
• Full‑year average net production: 44,900 boepd, at the top of the 43,000–45,000 boepd range.

• Production mix: 52% heavy crude, 15% light/medium crude, 33% natural gas.

• Reserves & Resources (as of 31 Dec 2025)

• 2P reserves: 521 MMboe (RLI ≈ 31 years).
• Reserves replacement ratio: 277 %.
• Proved developed producing (PDP) reserves up 28% YoY to 125 MMboe.

• Contingent resources (unrisked): 1,224 MMboe (including 1,142 MMboe tied to Blackrod).

• Blackrod Phase 1 Development

• First steam injection achieved Dec 2025 – a quarter ahead of schedule.
• Cumulative growth‑capital spend to date: US$820 M of the planned US$850 M.
• Remaining capital needed to first oil (2026): ≈ US$30 M for growth capex + US$60 M for sustaining/accelerated capex.

• Phase 1 2P reserves increased by 52 MMboe YoY to 311 MMboe; contingent resources rose by 117 MMboe to 1,142 MMboe.

• 2026 Budget & Guidance

• Average net production: 44,000–47,000 boepd.
• Operating costs: US$18–20 per boe.
• Capital & decommissioning spend: US$122 M (≈ US$90 M allocated to Blackrod).
• Expected OCF: US$100–250 M (assuming Brent $55‑75).

• Forecast FCF range: −US$70 M to +US$85 M (Brent $55‑75).

• Shareholder Returns

• Normal Course Issuer Bid (NCIB) repurchased & cancelled 7.7 M shares in FY 2025 at an average price of SEK 144 / CAD 20 per share.

• Total buybacks since inception: > USD 600 M, cancelling ~77 M shares.

• Financing Activity

• Refinanced USD 450 M unsecured bonds (Q4 2025), extending maturity to Oct 2030.

• Amended & extended CAD 250 M revolving credit facility (maturity May 2027).

• ESG Highlights

• No material safety or environmental incidents in Q4 2025 or full year.

• Net GHG emissions intensity reduced to 20 kg CO₂/boe, meeting the 2025 target of a 50 % reduction vs. 2019 baseline.

• Forward‑Looking Statements – company provided extensive forward‑looking guidance on production, cash flow, capital spending, commodity price assumptions, and ESG targets (see release for full disclaimer).

Notable Quotes

“We are pleased to announce another year of strong production performance… we forecast USD 1–2 billion in free cash flow generation from 2026‑2030 at Brent $65‑85 per barrel.” – William Lundin, President & CEO

All material figures are taken directly from the press release; non‑material boilerplate and forward‑looking disclaimer text have been omitted.