International Petroleum Corp. (british Columbia) · OMXSTO:IPCO
International Petroleum Corp. (british Columbia) — International Petroleum — Q3 2024 Earnings Presentation
38 slides from International Petroleum Corp. (british Columbia)'s earnings presentation, Nov 5, 2024
Slide 1: Operations & Financial Update Third Quarter 2024
Q3 24 International Petroleum Corp. Operations & Financial Update Third Quarter 2024 William Lundin, President & CEO Christophe Nerguararian, CFO November 5, 2024 NCF00363
Slide 2: Q3 2024 Highlights
International Petroleum Corp. Q3 2024 Highlights Q3 average net production 45,000 boepd, in line with guidance Production Guidance 2024 average net production guidance range maintained at 46,000–48,000 boepd Operating costs Q3 operating costs below guidance at 17.9 USD/boe Full year forecast revised
Slide 3: 2024 Production
International Petroleum Corp. 2024 Production Production - all assets Canada International High Low Guidance Q3 2024 average net production of 45.0 Mboepd 60 Extreme cold weather Planned maintenance Planned maintenance Canada Reduced gas optimization Planned turnaround completed at Onion Lake Therma
Slide 4: 2024 Production Guidance
International Petroleum Corp. 2024 Production 2024 Production Guidance International, 14% 2024 year to date average net production of 47.4 Mboepd ent Br Canada Gas, 33% G as Well-positioned to deliver within guidance range of 46 to 48 Mboepd W CS Canada Crude, 53% Production (Mboepd) 51 50 48.6 50 4
Slide 5: 2024 Operating Cash Flow
International Petroleum Corp. 2024 Operating Cash Flow First 9 months 2024 OCF 2024 CMD guidance OCF 2024 Forecast OCF 376 MUSD 90 USD/bbl (5/15) 342 MUSD 80 USD/bbl (5/15) 335 MUSD 70 USD/bbl (5/15) 264 MUSD 257 MUSD 83 USD/bbl (5/16) 70 USD/bbl (5/15) Q3 73 MUSD 80 USD/bbl (5/14) NC00369 p04 10.24
Slide 6: 2024 Capital Expenditure
International Petroleum Corp. 2024 Capital Expenditure 2024 Capital Expenditure France, 1% Malaysia, 5% Canada Other, 11% 437 MUSD Canada 413 MUSD France • Blackrod Phase 1 3 MUSD Canada Blackrod Phase 1, 83% • Suffield Area drilling • Optimization activity • Ferguson drilling • Development studies
Slide 7: 2024 Free Cash Flow
International Petroleum Corp. 2024 Free Cash Flow First 9 months 2024 FCF 2024 CMD Guidance FCF 2024 Forecast FCF (excluding Blackrod) (excluding Blackrod) 268 MUSD 90 USD/bbl (5/15) 229 MUSD 80 USD/bbl (5/15) 222 MUSD 70 USD/bbl (5/15) 171 MUSD (excluding Blackrod) 83 USD/bbl (5/16) 144 MUSD 70 USD
Slide 8: Share Repurchase
International Petroleum Corp. Share Repurchase 69 million IPC shares repurchased since inception at an average price of SEK 71 / CAD 9.5 per share On track to complete 2023/2024 NCIB share repurchase program in November Board approval to renew NCIB in December 2024 -25.5 -8.4 -9.6 +75.8 -8.3 -9.3 -7
Slide 9: Net Asset Value (MUSD)
International Petroleum Corp. Net Asset Value (MUSD) 3,081 (244 SEK/sh) 32.1 CAD/sh Opening net cash +58 3,023 56% discount ded to NAV a d la ue D v S 1,360 nU li lio (120.5 SEK/sh) 15.8 CAD/sh .2 5 b 543 2017 YE 2023 IPCO NAV 8 NAV 10 Market Cap NC00363 p08 07.24 (End October 2024) See Notes and Re
Slide 10: IPC Canada Blackrod Phase 1 Progress Update
IPC Canada Blackrod Phase 1 Progress Update Blackrod Phase 1 development project progressing in line with schedule and budget Drilling ongoing (Drilling on Pad A) Inlet degasser at site Facility construction continuing on plan Major equipment delivery on track Site civil works and access road upgrad
Slide 11: IPC Canada Blackrod Phase 1 Schedule
IPC Canada Blackrod Phase 1 Schedule - Major Activity Year 2023 2024 2025 2026 TODAY Civil Plan Build Site Works Complete Facilities Workshop Manufacture Transport Construct CPF Construct CPF Commission Drilling Gas Pipeline 3 Party rd Transport Diluent Pipeline Lines Diluent Bitumen (Dilbit) Pipeli
Slide 12: Onion Lake Thermal
Well Path Reservoir IPC Canada OLT Main Facility Pads Onion Lake Thermal Onion Lake Thermal Area First 6 Pad L Wells L D’ E Planned maintenance shutdown succesfully completed A C Continue ramp up of latest production sustaining Pad L wells B F Oil pipeline Onion Lake Thermal Production Planned Maint
Slide 13: Suffield/Alderson/Brooks Assets
Suffield/Alderson/Brooks Assets IPC Canada Glauconitic extension Suffield Oil area Suffield Gas area Suffield Area Assets Suffield Brooks assets Suffield ay Pekisko field irw Historical decline rates offset through development and optimisation Fa er slie Ell End 2022 Ellerslie block Focus on Ellersl
Slide 14: Other Assets Overview
Major Oil pipeline Major Gas pipeline IPC Canada IPC asset Other Assets Overview Mooney Blackrod Continued strong performance from the three new Ferguson production wells Edmonton Onion Lake EOR polymer flood at Mooney Phase 2 performing ahead of expectation Alberta Canada Other Assets Ferguson infi
Slide 15: IPC Malaysia Operations Update
IPC Malaysia Operations Update Successful completion of planned maintenance shutdown in Q3 Operational excellence continues with high uptimes and Malaysia well rate optimization Bertam Further development potential in the north east structure Bertam Field Production (Net IPC) Base Infills 6,000 Well
Slide 16: IPC France Operations Overview
IPC France Paris Basin Operations Overview France Aquitaine Basin Stable operations in Q3 2024 Assessing additional undeveloped potential Building on the positive results from the 2023 campaign France Production New wells Wells online maintenance 3,000 2,000 bopd 1,000 NC00369 p19 10.24 Jan Feb Mar
Slide 17: Sustainability
International Petroleum Corp. Sustainability Scope 1 Net Emissions Intensity (kg CO2e/boe) Canadian 59 Committed to a strong safety culture • No material safety incidents YTD 2024 2019 40 2020 33 2021 28 Pursuing our climate strategy • On track to achieve 50% Scope 1 net 2022 25 emissions intensity
Slide 18: Financial Highlights Third Quarter 2024
Third Quarter 2024 Financial Highlights IPC - Q3 2024 Presentation 18
Slide 19: First Nine Months 2024 Financial Highlights
First Nine Months 2024 Financial Highlights Third Quarter First Nine Months 2024 2024 Production (boepd) 45,000 47,400 Average Dated Brent Oil Price (USD/boe) 80.1 82.7 Operating costs (USD/boe) 17.9 16.5 Operating cash flow (MUSD) 72.6 263.8 EBITDA (MUSD) 68.3 259.3 Capital and decommissioning expe
Slide 20: First Nine Months 2024 Realised Oil Prices
First Nine Months 2024 Realised Oil Prices 2024 2023 USD/bbl YTD Q3 Q2 Q1 Q4 Q3 Q2 Q1 Full Year Brent 82.7 80.1 85.0 83.2 84.3 86.8 78.1 81.2 82.6 Malaysia 89.6 (+6.9) 80.9 (+0.8) 93.3 (+8.3) 91.6 (+8.4) 85.2 (+0.9) 94.8 (+8.0) 92.0 (+13.9) 86.1 (+4.9) 91.0 (+8.4) France 82.8 (+0.1) 80.5 (+0.4) 85.0
Slide 21: First Nine Months 2024 Realised Gas Prices
First Nine Months 2024 Realised Gas Prices 2024 2023 CAD/mcf YTD Q3 Q2 Q1 Q4 Q3 Q2 Q1 Full Year AECO 1.45 0.67 1.17 2.49 2.29 2.56 2.41 3.17 2.61 Empress 1.49 0.68 1.17 2.59 2.30 2.55 2.35 3.28 2.61 Realised (to AECO) 1.48 (+0.03) 0.72 (+0.05) 1.17 (–) 2.52 (+0.03) 2.33 (+0.04) 2.62 (+0.06) 2.44 (+0
Slide 22: Operating Cash Flow & EBITDA
First Nine Months 2024 Financial Results – Operating Cash Flow & EBITDA Operating Cash Flow EBITDA 300 300 279 284 280 280 Q3 264 Q3 259 123 260 Q3 119 260 Q3 240 73 68 240 220 220 200 200 Million USD Q2 Q2 Million USD 180 180 102 104 160 160 Q2 Q2 140 84 85 140 120 120 100 100 80 Q1 Q1 80 89 Q1 87
Slide 23: First Nine Months 2024 Operating Costs
First Nine Months 2024 Operating Costs USD/boe Quarterly operating costs USD/boe 22 22 20 20 2024 Operating Costs 18 Revised Guidance: <18.0 USD/boe 16 16 14 14 12 12 10 10 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Actual Actual Actual Forecast NC00369 fin p02 1024 See Notes and Reader Advisory IPC - Q3 2024
Slide 24: First Nine Months 2024 Netback (USD/boe)
First Nine Months 2024 Netback (USD/boe) Third Quarter First Nine Months 2024 2024 Average Dated Brent oil price (80.1 USD/bbl) (82.7 USD/bbl) Revenue 41.9 46.1 Cost of operations -15.5 -14.1 Tariff and transportation -2.1 -2.1 Production taxes -0.3 -0.3 Operating costs -17.9 -16.5 Cost of blending
Slide 25: First Nine Months 2024 Net Debt (MUSD)
First Nine Months 2024 Net Debt (MUSD) 400 400 Operating Cash Flow 350 MUSD 263.8 350 300 300 Development capex & abex 250 MUSD -313.4 250 Blackrod Phase 1 200 MUSD -245.3 200 150 150 MUSD MUSD 100 100 Net Cash Financial Opening Net Cash Other items 1 Jan 2024 50 Share buyback 50 MUSD -68.1 MUSD -13
Slide 26: G&A / Financial Items
First Nine Months 2024 G&A / Financial Items MUSD Third Quarter 2024 First Nine Months 2024 Net financing costs 5.3 13.2 Amortisation of capitalised financing fees 0.5 1.5 Unwinding of asset retirement obligation discount 3.6 10.9 Foreign exchange loss (gain), net -5.3 -1.7 Net Financial Items 4.1 2
Slide 27: First Nine Months 2024 Financial Results
First Nine Months 2024 Financial Results Revenue MUSD 598.6 47,400 boepd 600 600 550 550 500 500 Production costs MUSD -328.1 450 16.5 USD/boe 450 400 400 Million USD Million USD 350 350 Depletion 300 MUSD -102.8 300 Cash Margin MUSD 270.5 250 250 G&A 200 MUSD -12.2 Financial items 200 MUSD -23.9 Gr
Slide 28: Balance Sheet September 2024
30 September 2024 Balance Sheet MUSD 30 Sep 2024 31 Dec 2023 Assets Oil and gas assets 1,493.1 1,303.9 Other non-current assets 57.8 68.5 Current assets 157.1 173.5 Cash 299.2 517.1 2,007.2 2,063.0 Liabilities Financial liabilities 2.8 5.4 Bonds (net of capitalised fees) 438.6 435.0 Provisions 257.5
Slide 29: Capital Structure
International Petroleum Corp. Capital Structure Bonds MUSD 450 Maturity February 2027 7.25% coupon Interest payable February 1st and August 1st Canadian RCF MCAD 180 Maturity May 2026 Fully undrawn and available Letter of Credit Facility (entered into September 2024) Existing MCAD 40 letters of cred
Slide 30: Hedging
International Petroleum Corp. Hedging 2024 Hedges 2025 Hedges Oil WTI Q2-Q4 2024: 12,250 bbl/d @ 80 USD/bbl Q1 2025: 2,500 bbl/d @ 70 USD/bbl Oil WTI-WCS 2024: 17,700 bbl/d @ -15 USD/bbl 2025: 11,000 bbl/d @ -14 USD/bbl differential Oil Brent Q2-Q4 2024: 3,000 bbl/d @ 85 USD/bbl Gas Aug-Dec 2024: 14
Slide 31: First Nine Months 2024 Highlights
International Petroleum Corp. First Nine Months 2024 Highlights Record Investment Year Production Stable Operating Costs 313 MUSD 9M 2024 47.4 Mboepd 16.5 USD/boe (437 MUSD FY2024) Strong Cash Flow Robust Balance Sheet Sustainability Focus Share Repurchase 264 MUSD OCF Net Debt 157 MUSD No material
Slide 32: Notes
Notes Page 2: Q3 2024 Highlights • For production figures, see Reader Advisory, including “Supplemental Information regarding Product Types” in “Reserves and Resources Advisory” and the annual information form for the year ended December 31, 2023 (AIF) available on IPC’s website at www.international
Slide 33: Notes
Notes Page 16: France Operations Overview • For production figures, see Reader Advisory and AIF, including “Reserves and Resources Advisory”. Page 17: Sustainability • Scope 1 net emissions intensity target is compared to IPC’s 2019 net emissions intensity baseline. • Emissions intensity is the rati
Slide 34: Reader Advisory
Reader Advisory Forward-Looking Statements This presentation contains statements and information which constitute “forward-looking statements” or “forward-looking information” (within the meaning of applicable securities legislation). Such statements and information (together, “forward-looking state
Slide 35: Reader Advisory
Reader Advisory Additional information on these and other factors that could affect IPC, or its operations or financial results, are included in the financial statements (Financial Statements) and the management’s discussion and analysis for the three and nine months ended September 30, 2024 (MD&A)
Slide 36: Reader Advisory
Reader Advisory References to “unrisked” contingent resources volumes means that the reported volumes of contingent resources have not been risked (or adjusted) based on the chance of commerciality of such resources. In accordance with the COGE Handbook for contingent resources, the chance of commer
Slide 37: Reader Advisory
Reader Advisory This presentation includes oil and gas metrics including “cash margin netback”, “taxation netback”, “operating cash flow netback”, “cash taxes”, “EBITDA netback” and “profit netback”. Such metrics do not have a standardized meaning under IFRS or otherwise, and as such may not be reli
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