International Petroleum Corp. (british Columbia) · OMXSTO:IPCO
International Petroleum Corp. (british Columbia) — International Petroleum — FY2020 Earnings Presentation
28 slides from International Petroleum Corp. (british Columbia)'s earnings presentation, Feb 9, 2021
Slide 1: Operations and Financial Update Year End 2020
Operations and Financial Update Year End 2020 Q4 Mike Nicholson, CEO Christophe Nerguararian, CFO February 9, 2021 2020 NC00199 op p01 04.20
Slide 2: 2020 Highlights
International Petroleum Corp. 2020 Highlights Q4 average net production of 44,900 boepd Production (1) Full year average production at 42,100 boepd; in line with Q3 guidance Operating Costs (2) Full year and Q4 average operating costs of 12 USD/boe; in line with Q3 guidance 2020 capital expenditure
Slide 3: 2020 Production
International Petroleum Corp. 2020 Production Production – all assets Canada International Q4 2020 production of 44,900 boepd (1) 60 Low Pricing - Above forecast Bertam A20 Bertam rig heavy online lifts and move 50 Canada Bertam planned shutdown 2020 Paris Basin - Oil: Suffield and Onion Lake Therma
Slide 4: Production - Q4 Update
International Petroleum Corp. Production - Q4 Update Production Growth Through Time 50 46 >41 42 40 40 Full year production >42 Mboepd 34 37 37 Mboepd 30 30 20 10 10 0 2017 2018 2019 Q1 2020 Q2 2020 Q3 2020 2020 Update Update Update NC00199 op p17 02.21 4
Slide 5: 2020 Cash Flow
International Petroleum Corp. 2020 Cash Flow Operating Cash Flow(1) Free Cash Flow(1) 325 70 USD/bbl 29 23 9 MUSD Q1 1 119 125 50 USD/bbl Q2 Q3 Q4 2020 MUSD 42 USD/bbl -43 2020 2020 Actual CMD Guidance NC00199 op p16 02.21 1) See Reader Advisory. Non-IFRS measures, see MD&A. 5
Slide 6: Suffield Area Assets
Suffield Area Assets Suffield IPC Canada Suffield Asset(1) Steady performance from the Suffield gas asset Oil production ramped back up to above pre-curtailment rates CFB Suffield Alderson 0 KM 20 N2N EOR pool production ramp up ahead of expectation (2) IPC Licences Redcliff Operated / Shallow Gas H
Slide 7: IPC Canada Onion Lake Thermal
IPC Canada Onion Lake Thermal(1) Strong reservoir performance at Onion Lake Thermal D’ pad drilling completed in 2020 -> positioned for 2021 start-up Onion Lake Thermal R1W4 R27W3 16,000 D’ Pad F-Pad Low ramp up pricing 14,000 D’ E L 12,000 T56 A C T56 B 10,000 F bopd 8,000 F Pad 6,000 T55 T55 4,000
Slide 8: IPC Malaysia Operations Update
IPC Malaysia Operations Update(1) Malaysia High facility uptime and strong base well performance Additional 25% interest from PSCB from April 2021 expected A15 side track potential >1,500 bopd Bertam Field Gross Production 14,000 Phase 3 infill Phase 2 infill Planned 12,000 maintenance Phase 1 infil
Slide 9: IPC France Operations Update
Villeperdue Facilities Paris Basin IPC France Operations Update(1) France Stable production from all major producing fields Aquitaine Basin All development activity on hold Total to discontinue crude oil refining at the France Grandpuits facility in Q1 2021 Contract in place to end 2021 Future Paris
Slide 10: Financial Highlights
Year End 2020 Financial Highlights 10
Slide 11: Financial Highlights
Year End 2020 Financial Highlights Fourth Quarter Year End 2020 2020 Production (boepd) 44,900 42,100 Average Dated Brent Oil Price (USD/boe) 44.2 41.8 Operating costs (USD/boe) (1) 11.9 11.9 Operating cash flow (MUSD) (1) 46.0 119.4 EBITDA (MUSD) (1) 43.0 108.5 Net result (MUSD) (2) -45.3 -77.9 (1)
Slide 12: Realised Oil Prices
Year End 2020 Realised Oil Prices Full Year 2020 Q4 2020 Q3 2020 Q2 2020 Q1 2020 2019 2018 Brent 41.8 44.2 42.9 29.6 50.1 64.2 71.3 Malaysia 44.6 (+2.7) 47.0 (+2.8) 45.6 (+2.7) 31.6 (+2.0) 48.9 (-1.2) 69.9 (+5.7) 74.9 (+3.6) France 35.8 (-6.0) 45.7 (+1.5) 40.2 (-2.7) 24.1 (-5.5) 33.6 (-16.5) 63.5 (-
Slide 13: Realised Gas Prices
Year End 2020 Realised Gas Prices Full Year Q4 Q3 Q2 Q1 Full Year CAD/mcf 2020 2020 2020 2020 2020 2019 Realised Price CAD/Mcf AECO 2.23 2.64 2.24 1.99 2.03 1.80 Empress 2.22 2.64 2.23 1.99 2.03 2.49 Empress / AECO differential Realised 2.28 (+0.06) 2.72 (+0.08) 2.16 (-0.07) 1.93 (-0.06) 2.28 (+0.25
Slide 14: Financial Results – Operating Cash Flow & EBITDA
Year End 2020 Financial Results – Operating Cash Flow & EBITDA (1) Operating Cash Flow EBITDA 350 250 300 307.9 302.5 200 250 200 150 Million USD Million USD 150 100 119.4 100 108.5 50 50 0 0 NC00199 fin p14 04.20 Year End Year End Year End Year End 2020 2019 2020 2019 (1) Non-IFRS measures, see MD&
Slide 15: Fourth Quarter 2020 Financial Results – Operating Cash Flow & EBITDA
Fourth Quarter 2020 Financial Results – Operating Cash Flow & EBITDA (1) Operating Cash Flow EBITDA 100 100 80 80 78.9 77.4 60 60 Million USD Million USD 46.0 40 43.0 40 20 20 0 0 NC00199 fin p13 08.20 Q4 Q4 Q4 Q4 2020 2019 2020 2019 (1) Non-IFRS measures, see MD&A 15
Slide 16: Operating Costs
Year End 2020 Operating Costs (1) USD/boe USD/boe operating costs 20 20 16 16 2020 Operating Costs: 2020 Operating Costs: 12-13 USD/boe guidance 12 12 11.9 USD/boe average 8 8 4 4 0 0 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Actual Actual Actual Actual NC00199 fin p17 08.20 (1) Non-IFRS measure, see MD&A 16
Slide 17: Netback (USD/boe)
Year End 2020 Netback (1) (USD/boe) Fourth Quarter Year End 2020 2020 Average Dated Brent oil price (44.2 USD/bbl) (41.8 USD/bbl) Revenue 25.0 21.0 Cost of operations -9.8 -10.0 Tariff and transportation -1.6 -1.4 Production taxes -0.5 -0.5 Operating costs (2) -11.9 -11.9 Cost of blending -1.6 -1.3
Slide 18: Cash Flows and Closing Net Debt (MUSD)
Year End 2020 Cash Flows and Closing Net Debt(1) (MUSD) 0 0 -150 -150 Operating Cash Flow Development capex MUSD 119.4 MUSD -72.4 -200 -200 G&A -250 MUSD -11.1 -250 Fx on net debt Exploration & evaluation MUSD -8.4 MUSD -5.2 -300 -300 Opening Net Debt Financial items 1 Jan 2020 MUSD -18.1 Closing Ne
Slide 19: G&A / Financial Items
Year End 2020 G&A / Financial Items MUSD Fourth Quarter 2020 Year End 2020 G&A 3.2 11.1 G&A – Depreciation 0.4 1.7 G&A Expense 3.6 12.8 Fourth Quarter 2020 Year End 2020 Interest expense 3.9 13.4 Loan facility commitment fees 0.3 1.2 Amortisation of loan fees 0.6 2.0 Foreign exchange loss (gain), ne
Slide 20: Financial Results
Year End 2020 Financial Results Revenue 350 MUSD 324.2 350 42,100 boepd 300 300 Production costs MUSD 204.6 Operating costs (1) 11.9 USD/boe 250 250 Million USD 200 200 Million USD 150 150 Cash Margin MUSD 119.6 100 100 Depletion MUSD -123.6 50 50 0 0 Exploration costs Impairment MUSD -6.8 MUSD -73.
Slide 21: Balance Sheet
31 December 2020 Balance Sheet MUSD 31 Dec 2020 31 Dec 2019 Assets Oil and gas properties 1,070.9 1,105.5 Other non-current assets 169.7 147.1 Current assets 92.5 112.0 1,333.1 1,364.6 Liabilities Financial liabilities 301.1 244.7 Provisions 197.0 180.0 Other non-current liabilities 29.4 49.5 Curren
Slide 22: Financial Hedging in Canada
31 December 2020 Financial Hedging in Canada Oil Hedges Period Volumes Type Weighted bbls per day average per bbl January 1, 2021 - March 31, 2021 2,200 WCS Swap USD 27.28 April 1, 2021 - June 30, 2021 2,150 WCS Swap USD 27.99 January 1, 2021 - June 30, 2021 300 WTI Collar USD 35 - 45.83 February 1,
Slide 23: 2020 Highlights
International Petroleum Corp. 2020 Highlights Q4 average net production of 44,900 boepd Production (1) Full year average production at 42,100 boepd; in line with Q3 guidance Operating Costs (2) Full year and Q4 average operating costs of 12 USD/boe; in line with Q3 guidance 2020 capital expenditure
Slide 24: 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 25: Reader Advisory
Reader Advisory Although IPC believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because IPC can give no assurances that they will prove to be correct. Since forward-lo
Slide 26: Reader Advisory
Reader Advisory Reserve estimates, contingent resource estimates and estimates of future net revenue in respect of IPC’s oil and gas assets in France and Malaysia are effective as of December 31, 2020, and are included in the report prepared by ERC Equipoise Ltd. (ERCE), an independent qualified res
Slide 27: Reader Advisory – Supplemental Information regarding Product Types
Reader Advisory Supplemental Information regarding Product Types The following table is intended to provide supplemental information about the product type composition of IPC’s net average daily production figures provided in this document: Heavy Crude Oil Light and Medium Crude Oil Conventional Nat
Slide 28: www.international-petroleum.com
www.international-petroleum.com 28
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