InPlay Oil Corp. Announces 2025 Financial, Operating and Reserves Results Highlighted by Light Oil Production Growth of 131% and Total Proved and Probable Reserve Replacement of 1,084%

Executive Summary

• InPlay Oil Corp. reported a transformational 2025 year with light‑oil production up 131% YoY to 8,143 bbl/d and total average production of 17,043 boe/d (+96%).
• Adjusted Funds Flow (AFF) rose 67% to $114.4 M ($4.68 per basic share); free‑adjusted funds flow (FAFF) was $62 M, yielding an 18% FAFF yield and a $27.1 M dividend payout.
• The company completed the accretive April 2025 acquisition of Pembina Cardium assets, added 48,002 mboe PDP reserves (+179%) and achieved a total proved‑plus‑probable (TPP) reserve replacement rate of 1,084%, with NAV per share of $44.02 for TPP.

Key Details

• Acquisition: April 2025 purchase of Pembina Cardium light‑oil assets; metrics: +45% AFF/share, +65% FAFF/share; funded via credit facility increase, common‑share issuance and a $33.8 M equity raise.
• Shareholder Base: Delek Group Ltd. became a 32.7% shareholder, providing strategic capital flexibility.
• Financing: February 2026 senior unsecured bond offering – C$242 M gross proceeds, 6.23% coupon, maturing Dec 15 2030; term loan retired; $190 M undrawn revolving credit capacity remains.
• Production Highlights (2025):
• Average production: 17,043 boe/d (61% light oil & NGLs).
• Light‑oil output: 8,143 bbl/d (+131% YoY; +160% Q4 vs. Q4 2024).
• Cardium wells delivered initial rates ~429 boe/d (72% light oil) – ~66% above internal forecasts.
• Financial Highlights (FY 2025):
• Revenue: C$291,407 k (↑ 90%).
• Operating income: C$144,131 k; margin 49% (down from 54% FY 2024).
• Net debt: C$218 M (≈ 1.5× EBITDA).
• Capital expenditures: C$52 M (slightly below budget).
• Reserve Highlights (as of Dec 31 2025):
• PDP reserves: 48,002 mboe (↑ 179%).
• Total proved (TP) reserves: 90,987 mboe (↑ 107%).
• TPP reserves: 119,937 mboe (↑ 104%).
• NPV‑BT10 values: PDP $594 M ($14.69/share), TP $1,025 M ($30.16/share), TPP $1,411 M ($44.02/share).
• FD&A costs: PDP $9.22/boe (2.5× recycle); TP $12.96/boe (1.8×); TPP $10.65/boe (2.2×).
• 2026 Outlook: Board approved a $66‑$74 M capital budget for 12‑14 net Cardium wells, targeting 18,600‑19,200 boe/d average production (11% YoY increase) and FAFF yield of 11‑15%.
• Dividends: FY 2025 dividend payout $27.1 M ($0.97/share), cumulative since Nov 2022 = $69.7 M.

Notable Quotes

“InPlay has never been better positioned to advance this two‑pronged growth strategy.” – Doug Bartole, President & CEO
“Delek’s investment enhances our financial strength and strategic flexibility, providing access to additional capital and alternative funding sources.” – Doug Bartole

Materiality: Material – Positive (significant operational growth, strong cash generation, major acquisition, and financing that materially affect the company’s valuation and future outlook).