International Petroleum Corporation Announces Second Quarter 2025 Financial and Operational Results and Releases Sustainability Report

Executive Summary

• International Petroleum Corporation (IPC) released its financial and operational results for the three and six months ended June 30, 2025, reporting a net result of MUSD 14 for Q2 2025 and maintaining full-year 2025 production guidance.
• The company reported average net production of approximately 43,600 boepd for Q2 2025, with operating costs of USD 17.8 per boe and operating cash flow of MUSD 55.
• Significant progress was noted on the Blackrod Phase 1 development project in Canada, with 86% of the MUSD 850 growth capital guidance spent to date, and the final Central Processing Facility (CPF) module delivered.

Key Details

• Q2 2025 Financial Performance:
  • Net result: MUSD 14 (Q2 2025) vs MUSD 45,210 (Q2 2024).
  • Operating Cash Flow (OCF): MUSD 55 (Q2 2025) vs MUSD 101,941 (Q2 2024).
  • Free Cash Flow (FCF): MUSD -58 (Q2 2025) vs MUSD 7,559 (Q2 2024).
  • EBITDA: MUSD 51,519 (Q2 2025) vs MUSD 103,971 (Q2 2024).
  • Revenue: MUSD 158,892 (Q2 2025) vs MUSD 219,040 (Q2 2024).
  • Gross Profit: MUSD 23,663 (Q2 2025) vs MUSD 72,708 (Q2 2024).
• Q2 2025 Operational Metrics:
  • Average net production: ~43,600 boepd (52% heavy crude, 14% light/medium crude, 34% natural gas).
  • Operating costs: USD 17.8 per boe.
  • Capital and decommissioning expenditures: MUSD 100.
  • Net debt: MUSD 375 as of June 30, 2025 (up from MUSD 314 at March 31, 2025).
  • Gross cash: MUSD 79.
  • Available credit facility: >MUSD 180 (undrawn).
• 2025 Annual Guidance:
  • Production: Maintained at 43,000 to 45,000 boepd.
  • Operating Costs: Maintained at USD 18 to 19 per boe.
  • Operating Cash Flow: Revised down to MUSD 245–260 (previously MUSD 240–270).
  • Capital & Decommissioning: Maintained at MUSD 320 (including MUSD 230 for Blackrod).
  • Free Cash Flow: Revised down to MUSD -135 to -120 (previously MUSD -135 to -110).
• Blackrod Project Update:
  • 100% owned asset with 259 MMboe 2P reserves and 1,025 MMboe contingent resources.
  • Phase 1 development targeting 30,000 bopd plateau production; first oil expected late 2026.
  • Capital expenditures to end of Q2 2025: MUSD 729 (86% of MUSD 850 guidance).
  • Final CPF module delivered to site; mechanical, electrical, and instrumentation installations ongoing.
• Share Repurchases (NCIB):
  • 1.8 million shares repurchased and cancelled in Q2 2025.
  • Total repurchased under 2024/2025 NCIB: ~6.3 million shares (approx. 85% of the 7.5 million limit).
  • Average repurchase price in H1 2025: ~SEK 140 / CAD 19 per share.
  • Shares outstanding as of July 31, 2025: 113,278,532.
• Reserves and Resources (as of Dec 31, 2024):
  • Total 2P reserves: 493 MMboe (Reserve Life Index: 31 years).
  • Contingent resources (best estimate): 1,107 MMboe.
  • 2P reserves NAV: MUSD 3,083 (10% discount rate).
• Market Context & Hedging:
  • Brent average price Q2 2025: ~USD 68/bbl (range USD 60–77).
  • Oil hedges: ~50% of 2025 production hedged at ~USD 76 (Dated Brent) and ~USD 71 (WTI).
  • WTI/WCS differential hedged at USD 14/bbl for ~50% of 2025 Canadian production.
  • Natural gas hedged at CAD 2.4/Mcf for ~50% of net long exposure to end-Oct 2025.

Notable Quotes

• William Lundin, President and CEO: “IPC continued to achieve strong operational and financial performance during Q2 2025 across all of our operations in Canada, Malaysia and France. Our operating and financial results during the quarter were in line with the 2025 guidance announced at our Capital Markets Day in February as we continue to execute according to our budget and planned work program.”
• William Lundin, President and CEO: “The Blackrod Phase 1 development project in Canada continues to progress as planned... IPC now has fewer outstanding shares than at inception in April 2017 and we have not only grown our production and asset base substantially since that time, but we also look forward to the upcoming completion of the transformational Blackrod Phase 1 project.”