International Petroleum Corp. (british Columbia) · OMXSTO:IPCO

International Petroleum Corp. (british Columbia) — International Petroleum — Investor Presentation (January 2023)

49 slides from International Petroleum Corp. (british Columbia)'s investor presentation, January 2023

  1. Slide 1: Internationally Focused Upstream Company

    International Petroleum Corp. Internationally Focused Upstream Company January 2023 NC000251 02.22

  2. Slide 2: Strongly Positioned to Create Stakeholder Value

    International Petroleum Corp. Strongly Positioned to Create Stakeholder Value 2022-2026 137% Stakeholder Returns 95 USD 27% p.a. Debt reduction, share buybacks & dividends >1,800 MUSD FCF (1,2,3) M&A ~47 Mboepd (1) 4 transactions in 4 years 75 91% USD 18% p.a. Organic Growth >1.4 billion boe of cont

  3. Slide 3: 2P Reserves Growth

    International Petroleum Corp. 2P Reserves Growth (1) Net 2P Reserves and Production (MMboe) Eleven times 2P reserves growth since inception Granite 270 300 272 2P reserves of 270 MMboe 288 Reserves life index (RLI) of 16 years 275 BlackPearl Reserves Life Index (years) 1x >1 YE 2016 8 129 YE 2021 16

  4. Slide 4: Contingent Resources Growth

    International Petroleum Corp. Contingent Resources Growth (1) Net Contingent Resources (MMboe) 1,410 128 Material increase in contingent resource base to 1.4 billion boe 1,089 1,102 +300 MMboe in Blackrod contingent resources 102 115 849 Potential to mature resources in all countries 105 Canada - Bl

  5. Slide 5: Production Guidance

    International Petroleum Corp. 2022 Production Guidance Production Guidance (1) International, 17% sia lay Ma Canada Gas, 33% ce 2 quarters in succession achieving record average production Suffield Fra n Canada Other Gas First nine months production 48,400 boepd Ferguson Onion Lake 2022 average net

  6. Slide 6: 2022 Operating Cash Flow

    International Petroleum Corp. 2022 Operating Cash Flow (1) 655 MUSD 100 USD/bbl (5/20) 600-635 MUSD 620 MUSD 85 USD/bbl (5/20) 100 USD/bbl 509 MUSD 485-505 MUSD 106 USD/bbl 85 USD/bbl (8/16) 360-375 MUSD 70 USD/bbl 220-230 MUSD 55 USD/bbl 2022 CMD OCF 9 Months Full year revised NC00276 p05 10.22 gui

  7. Slide 7: 2022 Capital Expenditure

    International Petroleum Corp. 2022 Capital Expenditure (1) Canada 116 MUSD France - Onion Lake Thermal 23 MUSD - Ferguson development - Conventional oil drilling - Villeperdue West - Blackrod FEED development - Optimisation projects (accelerated) - Suffield gas recompletes - Aquitaine well optimisat

  8. Slide 8: 2022 Free Cash Flow

    International Petroleum Corp. 2022 Free Cash Flow (1) 460-480 MUSD 35% yield (2) 460 MUSD 100 USD/bbl (5/20) 100 USD/bbl 32% yield (2) 425 MUSD 85 USD/bbl (5/20) 365 MUSD 330-345 MUSD 106 USD/bbl (8/16) 85 USD/bbl 205-210 MUSD 70 USD/bbl 60-65 MUSD 55 USD/bbl 2022 CMD FCF 9 Months Full year revised

  9. Slide 9: Share Repurchase

    International Petroleum Corp. Share Repurchase Blackrod R19 Normal Course Issuer Bid (NCIB) Capital Allocation Framework Restarted NCIB immediately on completion of SIB Framework Potential FCF (1) to Distribute in 2022 9.3 million shares bought back and cancelled to end October Cost of 76 MUSD at 82

  10. Slide 10: Forecast Capital Expenditure

    International Petroleum Corp. Forecast 2P Reserves Capital Expenditure (1) 5 Year Business Plan CAPEX = ~400 MUSD / 4.65 USD/boe Sustains production at approximately 5 Year Business Plan OPEX = 15-16 USD/boe(2) 47,000 boepd Full discretion on forward plan MUSD Strongly positioned for significant fre

  11. Slide 11: Canadian Supply and Egress Update

    International Petroleum Corp. Canadian Supply and Egress Update(1) Western Canada oil supply vs pipeline Egress (2) (Million bopd) 8.0 Enbridge Line 3 370,000 bopd 7.5 Replacement Q4 2021 7.0 In service Q4 2021 6.5 6.0 Trans Mountain 590,000 bopd TransMountain expansion 5.5 Expansion Q3 2023 W. CDA

  12. Slide 12: Resilience of Free Cash Flow Generation

    International Petroleum Corp. Resilience of Free Cash Flow Generation(1,2) CMD2022–2026 IPC 2017–2021 95 CMD2017–2021 IPC 2017–2021 USD >1,800 MUSD FCF 27% p.a. FCF >660 MUSD ~47 75 USD Mboepd 35.5 61 >1,200 MUSD FCF Mboepd USD 18% p.a. 55 USD >600 MUSD FCF 9% p.a. NCF00251 p27 01.23 1) See Reader A

  13. Slide 13: Enterprise Value Liquidation

    International Petroleum Corp. Enterprise Value Liquidation (1,2) >1,800 MUSD 95 1,224 MUSD Market Cap 1,313 MUSD >900 MUSD January 6, 2023 65 Net Cash 89 MUSD 5 year forecast FCF Enterprise value 1) See Reader Advisory and MD&A, including “Non-IFRS Measures”. Net cash is as at September 30, 2022. NC

  14. Slide 14: Value Created from Acquisition

    International Petroleum Corp. Value Created from Acquisition(1,2) ~1.7 billion USD in value added from 4 acquisitions Suffield - Jan 2018 BlackPearl - Dec 2018 Granite - Mar 2020 Bertam 25% WI - Apr 2021 1,549 48 793 168 + 374 MUSD 38 value added + 1,147 MUSD + 113 MUSD value added value added + 48

  15. Slide 15: Net Asset Value (MUSD)

    International Petroleum Corp. Net Asset Value (MUSD) (1) 2,522 2,428 -94 46% discount to NAV ed add lue 1,313 (102.1 SEK/share) va USD lion Bil 8 > 1. 543 2017 YE 2021 Net Debt(2) YE 2021 IPCO Net Present Net Asset Market Cap(3) Value Value NC00276 p09 01.23 1) As at December 31, 2021. See Reader Ad

  16. Slide 16: Blackrod Contingent Resources

    IPC Canada Blackrod Contingent Resources(1) Capital Resources Expenditure Knowledge MMbbl Full field 7 years 1,283 development ~540 MUSD Successful pilot Pre production 217 MMbbl Phase 1 Local expertise development in SAGD operations Production Profitability Mbopd development 80 regulatory approved

  17. Slide 17: Sustainability & ESG

    International Petroleum Corp. Sustainability & ESG Health and safety No material safety incidents year to date Climate strategy On track to achieve 50% net emissions intensity reduction by 2025(1) Third annual Sustainability Report released in 2022 Compliant with Global Reporting Initiative (GRI) Al

  18. Slide 18: Appendix: Growth through Inception

    Appendix Growth through Inception 18

  19. Slide 19: 2022 Production

    International Petroleum Corp. 2022 Production High IPC Production Canada International Low Guidance 60 Onion Lake Thermal and Ferguson Q3 2022 average production of 50,000 boepd (1) maintenance and facility upgrade Second consecutive quarterly production record 50 High production uptimes and benefit

  20. Slide 20: Resource Maturation Strategy

    International Petroleum Corp. Resource Maturation Strategy Canada 300 250 200 +186% MMboe 150 100 Focus on undeveloped reserves and contingent resources 50 0 2017 2020 2021 Proven track record of maximising resource base through organic and inorganic growth Malaysia 25 20 +69% Proved plus probable r

  21. Slide 21: Reserves – Year End 2021

    International Petroleum Corp. Reserves – Year End 2021 (1) Light & Medium Oil Malaysia, 2% France, 4% Canada, 5% Gas, 26% 2P Reserves life index (RLI) of 16 years Total 270 MMboe(1) Undeveloped IPC YE 2021 Reserves Developed 350 Heavy Oil, 63% 300 250 MMboe 200 2P Reserves MMboe 150 End 2020 272 100

  22. Slide 22: Organic Growth

    International Petroleum Corp. Organic Growth Mature opportunity set allows flexibility to accelerate projects Future 2022 Opportunities Projects Canada » Onion Lake Thermal expansion » Conventional oil drilling » Mooney EOR expansion » Ferguson field development » Suffield N2N EOR Phase 2 » Onion La

  23. Slide 23: 2C Contingent Resources – Year End 2021

    International Petroleum Corp. 2C Contingent Resources – Year End 2021 (1) Contingent Resources History 1,410 Contingent resource position 5x reserves 1,089 1,102 128 MMboe of contingent resources excluding Blackrod 849 Light and medium oil, 30 Gas, 40 0 63 Heavy oil, 57 IPC YE17 YE18 YE19 YE20 YE21(

  24. Slide 24: Appendix Canada

    Alberta Saskatchewan Appendix Mooney Blackrod Heavy oil Heavy oil Canada Edmonton Conventional Assets Onion Lake Heavy oil Heavy oil Calgary Regina Suffield Medicine Hat Gas & Heavy oil Ferguson 0 KM 200 Light oil IPC Northern Assets IPC Southern Assets Major oil sands deposits 24

  25. Slide 25: IPC Canada Suffield Oil Production

    Alberta Saskatchewan IPC Canada Suffield Oil (1) Blackrod Edmonton Onion Lake Stable production performance in Q3 Historic declines offset through development and optimisation Calgary Regina Medicine Hat Suffield 2022 development drilling activity ongoing Ferguson 2 production and 2 ASP injection we

  26. Slide 26: Suffield Gas Production

    Suffield Area Assets IPC Canada Suffield Suffield Gas (1) Strong Canadian gas prices realised for IPC in Q3 Offsetting natural declines with low cost optimisation activity CFB Suffield Alderson 0 KM 20 Increased capital expenditure includes 127 gas well recompletes IPC Licences Redcliff Operated / S

  27. Slide 27: Onion Lake Thermal

    IPC Canada Onion Lake Thermal - Net Pay Onion Lake Thermal (1) Pad L Pad D’ Record production achieved in Q3 Daily rates in excess of 14,000 bopd name plate capacity 2022 drilling program ongoing Pad L Pad D’ 2 new infills drilled, rates exeeding expectations Pad L drilling on track with schedule Ad

  28. Slide 28: Ferguson 2022 Drilling Program

    IPC Canada Ferguson - 2022 Drilling Program Ferguson(1) R18 R17 R16 R15W4 T4 N Production growth as new wells are brought online T3 2022 development program complete 16 new wells completed Ferguson Daily production of 3,000 boepd achieved for first time 2022 wells Oil wells under IPC operatorship Mi

  29. Slide 29: Mooney and Conventional Assets Overview

    Major Oil pipeline Major Gas pipeline IPC Canada IPC asset Mooney and Conventional Assets Overview Mooney Conventional and Mooney assets Conventional Assets to provide > 2,000 bopd in 2022(1) Edmonton Onion Lake Conventional & Mooney Production Actual 3,000 Low Alberta pricing 2,500 Saskatchewan 2,0

  30. Slide 30: Blackrod Asset Overview

    IPC Canada Blackrod Net Pay Blackrod Asset Overview(1) 0 1 km 2 Development Area Blackrod Athabasca Peace River Material increase in 2C resources to 1.3 Billion bbls Cold Lake Mooney Edmonton Onion Lake >150 MUSD invested pre IPC acquisition Conventional Assets Canada Seismic and vertical well contr

  31. Slide 31: Appendix International

    Paris Basin Licences 0 KM 20 Reims IPC licences Production Plivot Exploration La Motte Noire Oil field Vert-la-Gravelle Paris Fontaine-au-Bron W&S Soudron Villeperdue Dommartin-Lettrée Amaltheus Courdemanges Merisier Grandville Aquitaine Basin Licences IPC licences Production Paris Basin Oil field C

  32. Slide 32: IPC Malaysia Operations Update

    IPC Malaysia Operations Update (1) High facility uptime and strong base well performance Complemented by strong Q3 dated Brent prices Malaysia Bertam A15 sidetrack and 3 ESP upgrades online Bertam Field Production (Net IPC) Base Infills 2022 Capital Program 10,000 Planned maintenance turnaround Plan

  33. Slide 33: Bertam Development

    IPC Malaysia Bertam Structure Bertam Development(1) A20 A10 A15 sidetrack A15 Sidetrack completed successfully Bertam FPSO A09 Pump upsizing and workovers completed ESP Upgrades 0 KM 2 A16 A13 Additional infill locations identified and being matured in 2022 Infill Campaigns Gross EUR (MMboe) 8.9 6.3

  34. Slide 34: IPC France Operations Update

    IPC France Paris Basin Operations Update (1) France Aquitaine Basin Strong production from all major producing fields VGR113 continues to outperform expectations 3 well drilling program at Villeperdue West commenced late October France Production VGR-113H Production Performance 4,000 1,600 VGR Grand

  35. Slide 35: Appendix: Financials

    Appendix Financials 35

  36. Slide 36: First Nine Months 2022 Realised Oil Prices

    First Nine Months 2022 Realised Oil Prices Full Year Full Year USD/bbl YTD 2022 Q3 2022 Q2 2022 Q1 2022 2021 2020 Brent 105.5 100.8 113.9 102.2 70.9 41.8 Malaysia 119.1 (+13.6) 115.8 (+15.0) 121.5 (+7.6) 124.1 (+21.9) 75.1 (+4.2) 44.6 (+2.8) France 102.4 (-3.1) 100.4 (-0.4) 113.7 (-0.2) 95.8 (-6.4)

  37. Slide 37: Realized Gas Prices

    International Petroleum Corp. Realized Gas Prices YTD Q3 Q2 Q1 Full Year Full Year CAD/mcf 2022 2022 2022 2022 2021 2020 AECO 5.30 4.08 7.17 4.76 3.63 2.23 Empress 6.58 7.03 7.81 4.96 3.90 2.22 Realised (to AECO) 6.22 (+0.92) 5.75 (+1.67) 7.81 (+0.64) 4.96 (+0.20) 3.70 (+0.07) 2.28 (+0.05) Empress /

  38. Slide 38: Hedging

    International Petroleum Corp. Hedging 2022 Canadian Hedges Oil hedging (~60% of Canadian oil Oct-Dec production): Oct-Dec 22: 16.0 Mbopd WTI/WCS diff. swap at 13.04 USD/bbl Historic WTI/WCS Differential (USD/bbl) 50 44.73 2023 Canadian Hedges 45 40 Oil hedging 35 WCS - ARV: 12.0 Mbopd at -10 USD/bbl

  39. Slide 39: Operating Costs

    International Petroleum Corp. Operating Costs(1) USD/boe operating costs USD/boe 20 20 18 18 2022 Operating Costs Guidance: 16-17 USD/boe 16 14 14 12 12 10 10 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Actual Actual Actual Forecast NC00276 p25 10.22 (1) See Reader Advisory and MD&A, including “Non-IFRS Measure

  40. Slide 40: Appendix: Economics

    Appendix Economics 40

  41. Slide 41: Long-term Brent Price Forecast

    International Petroleum Corp. Long-term Brent Price Forecast (1) Realised Price Year End 2021 Price Deck Brent USD/bbl (1) Year End 2020 Price Deck 100 90 80 75 73 71 71 72 71 70 70 64 60 57 58 55 56 50 50 42 40 30 NC00250 p01 02.22 2018 2019 2020 2021 2022 2023 2024 2025 2026 1) See Reader Advisory

  42. Slide 42: Long-term Canadian Pricing Forecast

    International Petroleum Corp. Long-term Canadian Pricing Forecast (1) Western Canadian Select (WCS) USD/bbl Empress Gas Price CAD/mcf 80 6.0 75 5.5 70 5.0 65 61 4.5 4.44 60 57 57 55 55 56 3.90 4.0 3.82 55 3.65 CAD/mcf 3.58 USD/bbl 3.51 50 3.5 3.48 3.55 3.36 3.42 45 44 3.07 3.35 43 3.0 42 41 41 40 39

  43. Slide 43: NAV Changes (MUSD)

    International Petroleum Corp. NAV (1) Changes (MUSD) 2,410 2,522 94 2,428 291 2,120 1,630 1,523 321 94 1,429 1,309 Net Debt (2) NAV 2020 2021 2022 2022 @ 2021 price NC00250 p04 02.22 1) As at December 31, 2021. See Reader Advisory, MD&A and AIF, including “Disclosure of Oil and Gas Information”. NPV

  44. Slide 44: Net Present Value per Share

    International Petroleum Corp. Net Present Value per Share (1) (MUSD) NPV8 2P 2,522 2P NPV8 (SEK/Share) Malaysia/France Onion Lake Thermal NPV8 1P 1,752 19 60% Developed Canada other incl. tax Enterprise Value 19 1,224 MUSD NPV8 PDP 1,159 69 Ferguson 9 32 Suffield 68 103 148 SEK/share NC00250 p03 01.

  45. Slide 45: 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

  46. Slide 46: 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

  47. Slide 47: Reader Advisory: Disclosure of Oil and Gas Information

    Reader Advisory Disclosure of Oil and Gas Information This presentation contains references to estimates of gross and net reserves and resources attributed to the Corporation’s oil and gas assets. Gross reserves / resources are the working interest (operating or non-operating) share before deduction

  48. Slide 48: 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 presentation: Heavy Crude Oil Light and Medium Crude Oil Conventional

  49. Slide 49: www.international-petroleum.com

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