IPC First Quarter 2021 Financial Results
May 5, 2021
International Petroleum Corporation (IPC or the Corporation) (TSX, Nasdaq Stockholm: IPCO) today released its financial and operating results and related management’s discussion and analysis (MD&A) for the three months ended March 31, 2021.
|Q1 2021 Financial and Operational Highlights|
|•||Average net production of approximately 43,700 barrels of oil equivalent (boe) per day (boepd) for the first quarter of 2021 (44% heavy crude oil, 19% light and medium crude oil and 37% natural gas)(1).|
|•||Average net production is above the high end of the 2021 Capital Markets Day (CMD) guidance range for the first quarter of 2021, with exceptional operational performance and high uptimes recorded across IPC’s portfolio.|
|•||Full year 2021 average net production is expected to be towards the high end of the forecast 41,000 to 43,000 boepd range(1).
|•||Operating costs(2) per boe of USD 14.4 for the first quarter of 2021, in line with CMD guidance.
|•||Capital and decommissioning expenditures of MUSD 12.0 for the first quarter of 2021, in line with CMD guidance.
|•||Exceptionally strong free cash flow (FCF)(2) generation of MUSD 49 for the first quarter of 2021, representing close to 10% of IPC’s market capitalization as at March 31, 2021.
|•||Increased working interest in the Bertam field, Malaysia to 100% from April 10, 2021.|
|•||Production sustaining Pad D’ at Onion Lake Thermal, Canada is on budget and scheduled to come on-line during the second quarter of 2021.|
|•||Proved plus probable (2P) reserves as at December 31, 2020 of 272 million boe (MMboe), with a reserves life index of 18 years(1).
|•||Contingent resources (best estimate, unrisked) as at December 31, 2020 of 1,102 MMboe(1).|
|•||Forecast cumulative FCF(2) for 2021 to 2025 of approximately MUSD 600 to MUSD 900, generating estimated average annual free cash flow yield over the five year period of between 24% and 36%(3).
|•||Operating cash flow (OCF)(2) generation for the first quarter of 2021 amounted to MUSD 68, above the higher end of the CMD guidance.
|•||Net debt(2) of MUSD 286 as at March 31, 2021.
|•||Net result of MUSD 27 for the first quarter of 2021.
|Three months ended March 31|