IPC third quarter 2022 financial and operational results

November 1, 2022

International Petroleum Corporation (IPC or the Corporation) (TSX, Nasdaq Stockholm: IPCO) today released its financial and operational results and related management’s discussion and analysis (MD&A) for the three and nine months ended September 30, 2022.

Mike Nicholson, IPC’s Chief Executive Officer, comments: “We are very pleased to announce that IPC achieved record quarterly average net production of 50,000 barrels of oil equivalent per day during the third quarter, with very strong operational performance across all our areas of operation. We produced strong cash flows from our business, ending the quarter with a net cash position of MUSD 89. This was achieved with no material safety or environment incidents during the quarter, and as we continue to work toward our net emissions intensity reduction target. Pricing for oil and gas, though stepped back from second quarter levels, remained high during the third quarter. We are confident that given forecast demand and the continuing under-investment in the oil and gas industry, this strong pricing should continue. We continue to work toward adding shareholder value through our well-balanced portfolio of light and heavy oil and gas assets and the development potential of the Blackrod project in Canada as well as shareholder returns under our capital allocation framework.”

Q3 2022 Business and Financial Highlights

Q3 2022 Achievements

  • Successful conclusion of IPC’s first Substantial Issuer Bid (SIB) returning MUSD 100 to participating shareholders and approximately 8.3 million common shares being purchased and cancelled in early July 2022.
  • Record spot production rates achieved during the third quarter under IPC operatorship at the Onion Lake Thermal and Ferguson assets in Canada.
  • Front End Engineering Design (FEED) studies on the Blackrod project, Canada progressing for scheduled completion by end 2022.
  • Release of IPC’s third Sustainability Report in August 2022.

Q3 2022 Results

  • Record average net production of approximately 50,000 barrels of oil equivalent (boe) per day (boepd) for the third quarter of 2022, above high end guidance (45% heavy crude oil, 21% light and medium crude oil and 34% natural gas).(1)
  • Net result of MUSD 91 for the third quarter of 2022.
  • Operating costs per boe of USD 15.7 for the third quarter of 2022, below latest guidance.(2)
  • Strong operating cash flow (OCF) generation for IPC of MUSD 172 for the third quarter of 2022.(2)
  • Capital and decommissioning expenditures of MUSD 47 for the third quarter of 2022 and MUSD 119 for the first nine months of 2022.
  • Strong free cash flow (FCF) generation for IPC of MUSD 117 for the third quarter of 2022.(2)
  • Net cash of MUSD 89 as at September 30, 2022 (after the funding of a further MUSD 47 of share repurchases during the third quarter).(2)

2022 Annual Guidance

  • Full year 2022 average net production expected to be above the upper end of the guidance range of 48,000 boepd.(1)
  • Full year 2022 operating costs guidance retained at between USD 16 to 17 per boe.(2)
  • Full year 2022 OCF guidance tightened to between MUSD 620 to 655 (Brent USD 85 to 100 per barrel for the remainder of 2022).(2)
  • Full year 2022 capital and decommissioning expenditures guidance retained at MUSD 170.
  • Full year 2022 FCF guidance tightened to between MUSD 425 to 460 (Brent USD 85 to 100 per barrel for the remainder of 2022).(2)

Reserves and Resources

  • Proved plus probable (2P) reserves as at December 31, 2021 of 270 million boe (MMboe), with a reserves life index of 16 years.(1,3)
  • Contingent resources (best estimate, unrisked) as at December 31, 2021 of 1,410 MMboe.(1,3)


Three months ended September 30   Nine months ended September 30
USD Thousands 2022 2021   2022 2021
Revenue 300,770 172,551 879,479 451,113
Gross profit / (loss) 140,489 58,636 421,298 130,852
Net result 90,503 30,557 276,542 79,141
Operating cash flow(2) 171,654 91,365 509,279 226,045
Free cash flow(2) 116,681 76,607 364,954 175,924
EBITDA(2) 174,328 89,223