International Petroleum Corp. (british Columbia) · OMXSTO:IPCO
International Petroleum Corp. (british Columbia) — International Petroleum — Q2 2020 Earnings Presentation
28 slides from International Petroleum Corp. (british Columbia)'s earnings presentation, Aug 4, 2020
Slide 1: Operations and Financial Update Second Quarter 2020
Operations and Financial Update Second Quarter 2020 Mike Nicholson, CEO Christophe Nerguararian, CFO August 4, 2020 Q2 2020 NC00180 p01 04.20
Slide 2: Q2 2020 Highlights
International Petroleum Corp. Q2 2020 Highlights(1) Q2 average net production of 35,700 boepd Production Commenced progressive increase of curtailed Canadian oil production Revising full year guidance upwards to 37,000 to 40,000 boepd [Previously 30,000 to 37,000 boepd] Operating Costs(2) Q2 opex pe
Slide 3: 2020 Investment Strategy - Q2 Update
International Petroleum Corp. 2020 Investment Strategy - Q2 Update(1) CAPEX & Decommissioning OPEX Marginal increase of MUSD 3 No change to Q1 OPEX guidance Onion Lake Thermal D’ drilling completion Progressive production increases at major oil assets in Canada Progressive increase of Suffield N2N p
Slide 4: Production - Q2 Update
International Petroleum Corp. Production - Q2 Update Q1 Results Production Growth Through Time(1) 2020 guidance of 30,000 to 37,000 boepd(1) Low side: Canada oil fully curtailed 50 46 High side: Canada oil partially curtailed 2H 2020 Capital Projects 40 40 37 Q2 Results 34 37 2020 guidance increased
Slide 5: 2020 Production – Year to Date
International Petroleum Corp. 2020 Production – Year to Date Q2 2020 production of 35,700 boepd Production – all assets Canada 60 - Q2 production impacted by voluntary curtailments Low Pricing - Production increases through Q3 2020 Bertam A20 online Bertam rig heavy lifts and move 50 Bertam planned
Slide 6: Maximising Liquidity Headroom
International Petroleum Corp. Maximising Liquidity Headroom(1) RBL facilities International facility increased from 125 to 140 MUSD; maturity extended to December 2024 Canadian facility refinanced to 350 MCAD; maturity extended to May 2022 No leverage covenants French 13 MEUR facility secured Net in
Slide 7: Suffield Area Assets
Suffield Area Assets Suffield IPC Canada Suffield Asset(1) Continued optimisation of Suffield gas production Progressive ramp up of production at Suffield oil 2H 2020 2020 development activity on hold due to low pricing in Q1/Q2 2020 Alderson CFB Suffield 0 KM 20 Mature and high grade 2021 organic g
Slide 8: IPC Canada Onion Lake Thermal
IPC Canada Onion Lake Thermal(1) Facility upgrades completed in 2019 F Pad online, field production ~ 12,000 bopd capacity Progressive production ramp up 2H 2020 with improved WCS pricing Onion Lake Thermal D’ pad drilling in 2020 -> positioned for 2021 start-up R1W4 R27W3 No reservoir impact due to
Slide 9: IPC Malaysia Operations Update
IPC Malaysia Operations Update(1) Malaysia A15 activity suspended in 2020, side track planned for 2021 Maturing additional production opportunities Additional drilling target identification and maturation Base well rate optimisation A15 potential Bertam Field Gross Production 14,000 Phase 3 infill P
Slide 10: IPC France Operations Update
Villeperdue Facilities Paris Basin IPC France Operations Update(1) France Aquitaine Basin All development activity on hold due to low pricing environment in 2020 Production increased to pre-curtailment rates post Grandpuits refinery outage Proven track record of resource growth Horizontal wells unlo
Slide 11: Second Quarter 2020 Financial Highlights
Second Quarter 2020 Financial Highlights 11
Slide 12: First Six Months 2020 Financial Highlights
First Six Months 2020 Financial Highlights Second Quarter First Six Months 2020 2020 Production (boepd) 35,700 40,900 Average Dated Brent Oil Price (USD/boe) 29.6 40.1 Operating costs (USD/boe) (1) 10.7 11.7 Operating cash flow (MUSD) (1) 14.7 36.2 EBITDA (MUSD) (1) 12.2 31.2 Net result (MUSD) -1.5
Slide 13: First Six Months 2020 Realised Oil Prices
First Six Months 2020 Realised Oil Prices Q2 Q1 Full Year 2020 2020 2019 Brent 29.6 50.1 64.2 Malaysia 31.6 (+2.0) 48.9 (-1.2) 69.9 (+5.7) France 24.1 (-5.5) 33.6 (-16.5) 63.5 (-0.7) WTI 28.3 46.1 57.0 WCS (calculated) 16.9 25.5 44.2 Suffield 13.3 (-3.6) 27.0 (+1.5) 45.6 (+1.4) Onion Lake 9.9 (-7.0)
Slide 14: First Six Months 2020 Realised Gas Prices
First Six Months 2020 Realised Gas Prices Q2 Q1 Full Year CAD/mcf 2020 2020 2019 Realised Price CAD/Mcf AECO 1.99 2.03 1.80 Empress 1.99 2.03 2.49 Empress / AECO differential Realised 1.93 (-0.06) 2.28 (+0.25) 2.77 (+0.28) AECO Day Ahead Index 9 8 7 3.07 6 5 3.86 CAD/Mcf 2.11 2.29 2.73 4 2.70 2.43 2
Slide 15: Second Quarter 2020 Financial Results – Operating Cash Flow & EBITDA
Second Quarter 2020 Financial Results – Operating Cash Flow & EBITDA (1) Operating Cash Flow (1) EBITDA(1) 100 100 80 80 76.5 74.6 60 60 Million USD Million USD 40 40 20 20 14.7 12.2 0 0 Q2 Q2 Q2 Q2 NC00180 p13 08.20 2020 2019 2020 2019 (1) Non-IFRS Measure, see MD&A 15
Slide 16: First Six Months 2020 Operating Costs
First Six Months 2020 Operating Costs (1) USD/boe USD/boe operating costs 20 20 16 16 2020 Operating Costs: 12 12 12-13 USD/boe guidance 8 8 4 4 0 0 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Actual Actual Forecast Forecast NC00180 p17 08.20 (1) Non-IFRS Measure, see MD&A 16
Slide 17: First Six Months 2020 Netback
First Six Months 2020 Netback (1) (USD/boe) Second Quarter First Six Months 2020 2020 Average Dated Brent oil price (29.6 USD/bbl) (40.1 USD/bbl) Revenue 13.8 16.9 Cost of operations -9.1 -10.0 Tariff and transportation -1.3 -1.3 Production taxes -0.3 -0.4 Operating costs (2) -10.7 -11.7 Cost of ble
Slide 18: First Six Months 2020 Cash Flows and Closing Net Debt
First Six Months 2020 Cash Flows and Closing Net Debt(1) (MUSD) 0 0 -200 -200 Operating Cash Flow Development capex -250 MUSD 36.2 MUSD -59.4 -250 -300 -300 Opening Net Debt G&A 1 Jan 2020 MUSD -5.1 Fx on net debt MUSD -304.5(2) MUSD 10.4 Closing Net Debt -350 Exploration & evaluation -350 30 Jun 20
Slide 19: First Six Months 2020 G&A / Financial Items
First Six Months 2020 G&A / Financial Items MUSD Q2 2020 First Six Months 2020 G&A 2.7 5.1 G&A – Depreciation 0.4 0.8 G&A Expense 3.1 5.9 Q2 2020 First Six Months 2020 Interest expense 2.6 6.4 Loan facility commitment fees 0.2 0.5 Amortisation of loan fees 0.4 0.8 Foreign exchange loss (gain), net (
Slide 20: First Six Months 2020 Financial Results
First Six Months 2020 Financial Results 140 Revenue 140 MUSD 125.4 40,900 boepd 120 120 Production costs MUSD -89.2 Operating costs (1) 11.7 USD/boe 100 100 Million USD 80 80 Million USD 60 60 40 40 Cash Margin MUSD 36.2 Depletion 20 MUSD -59.6 20 0 0 Net result G&A MUSD -41.5 -20 MUSD -5.9 -20 Gros
Slide 21: First Six Months 2020 Balance Sheet
First Six Months 2020 Balance Sheet MUSD 30 Jun 2020 31 Dec 2019 Assets Oil and gas properties 1,114.6 1,105.5 Other non-current assets 166.8 147.1 Current assets 75.9 112.0 1,357.3 1,364.6 Liabilities Financial liabilities 319.8 244.7 Provisions 185.5 180.0 Other non-current liabilities 44.1 49.5 C
Slide 22: Maximising Liquidity Headroom
International Petroleum Corp. Maximising Liquidity Headroom(1) RBL facilities International facility increased from 125 to 140 MUSD; maturity extended to December 2024 Canadian facility refinanced to 350 MCAD; maturity extended to May 2022 No leverage covenants French 13 MEUR facility secured Net in
Slide 23: Oil Hedging in Canada
30 June 2020 Oil Hedging in Canada Weighted average WCS price of 28 USD/bbl for Q3 (67% forecast Canadian production) and 25 USD/bbl for Q4 (50% forecast Canadian production) Period Volumes per day Type Weighted average July 1, 2020 - September 30, 2020 700 SWAP 70.67 WTI - CAD October 1, 2020 - Dec
Slide 24: Q2 2020 Highlights
International Petroleum Corp. Q2 2020 Highlights(1) Q2 average net production of 35,700 boepd Production Commenced progressive increase of curtailed Canadian oil production Revising full year guidance upwards to 37,000 to 40,000 boepd [Previously 30,000 to 37,000 boepd] Operating Costs(2) Q2 opex pe
Slide 25: 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 26: Reader Advisory
Reader Advisory The Corporation uses non-IFRS measures to provide investors with supplemental measures to assess cash generated by and the financial performance and condition of the Corporation. Management also uses non-IFRS measures internally in order to facilitate operating performance comparison
Slide 27: Reader Advisory
Reader Advisory 2P reserves and contingent resources included in the reports prepared by Sproule and ERCE in respect of IPC’s oil and gas assets in Canada, France and Malaysia have been aggregated by IPC and may also be aggregated by IPC with the 2P reserves and contingent resources attributable to
Slide 28: as, International Petroleum
as, International 1 Petroleum Corp.
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