International Petroleum Corp. (british Columbia) · OMXSTO:IPCO
International Petroleum Corp. (british Columbia) — International Petroleum — Q1 2023 Earnings Presentation
39 slides from International Petroleum Corp. (british Columbia)'s earnings presentation, May 2, 2023
Slide 1: Operations & Financial Update First Quarter 2023
Operations & Financial Update Q 1 23 First Quarter 2023 Mike Nicholson, CEO Christophe Nerguararian, CFO May 2, 2023 NC00312 p01 04.23
Slide 2: Q1 2023 Highlights
International Petroleum Corp. Q1 2023 Highlights Production Guidance Record quarterly average net production 52,800 boepd, above high end guidance 2023 average net production expected to be at top end of guidance range of 48,000–50,000 boepd Operating costs Q1 operating costs in line with guidance a
Slide 3: 2023 Production
International Petroleum Corp. 2023 Production Production – all assets High Canada International Low Q1 Guidance Record quarterly production of 52,800 boepd in Q1 2023 50 Canada 40 - Strong performance at the Suffield oil and gas producing assets including Cor4 - Strong performance continues at Onion
Slide 4: 2023 Production Guidance
International Petroleum Corp. 2023 Production Guidance 2023 Production Guidance International, 14% a aysi Mal ce Canada Gas, 33% Canada Other an Fr Suffield Gas Ferguson 2023 annual production expected to be at upper end of CMD guidance of 48,000 to 50,000 boepd Onion Lake Thermal Suffield Canada Oi
Slide 5: Operating Cash Flow
International Petroleum Corp. Operating Cash Flow 495 MUSD 100 USD/bbl (5/20) 250 MUSD 70 USD/bbl (5/20) 76 MUSD 81 USD/bbl (5/25) Q1 2023 OCF 2023 CMD OCF NC00312 p05 04.23 guidance See Notes and Reader Advisory 5
Slide 6: 2023 Capital Expenditure
International Petroleum Corp. 2023 CMD 2023 Capital Expenditure Capital Allocation Malaysia,1% France, 4% Blackrod Phase 1 early works in line with schedule Oil well drilling in Canada and France 55 MUSD spent in Q1 2023 365 MUSD Bl Canada ack 9 % rod 7 345 MUSD France Canada, 95% Blackrod Phase 1 1
Slide 7: Free Cash Flow
International Petroleum Corp. Free Cash Flow 105 MUSD 100 USD/bbl (5/20) 16 MUSD 81 USD/bbl (5/25) (145) MUSD 70 USD/bbl (5/20) Q1 2023 2023 CMD FCF FCF guidance NC00312 p07 04.23 See Notes and Reader Advisory 7
Slide 8: Shareholder Return Framework
International Petroleum Corp. Shareholder Return Framework IPC Capital Allocation Framework Provided Net Debt / EBITDA <1.0x, 40% of Free Cash Flow returned to Shareholders 2023 Free Cash Flow - Pre Blackrod 70 USD 85 USD 100 USD 142 272 392 MUSD MUSD MUSD 287 MUSD Blackrod Capex 2023 Free Cash Flow
Slide 9: Share Repurchase
International Petroleum Corp. Share Repurchase 57.2 million IPC shares repurchased at average SEK 61 per share >220 MUSD in value created at SEK 102/share -25.5 -8.4 -10.3 +75.8 -8.3 >5x production -4.8 132.1 16% 113.5 Dilution >16x 2P reserves Million IPC shares +19 years added to reserves life >1
Slide 10: Net Asset Value (MUSD)
International Petroleum Corp. Net Asset Value (MUSD) 4,184 (319 SEK/sh) Opening cash +113 3,545 Blackrod (270 SEK/sh) +1,128 Opening cash +113 Blackrod 2,942 +807 d dde 2,625 65-70% ea alu discount Dv to NAV US ion bill 1,249 3.7 (97.64 SEK/sh) 3 to 543 2017 YE 2022 YE 2022 IPCO NC00312 p08 04.23 Ne
Slide 11: IPC Canada Blackrod Phase 1
0 10 KM 40 IPC Canada Blackrod Phase 1 Fort McMurray Scope, schedule and budget on track Blackrod - Road Construction On track to sign major CPF contract early Q2 Blackrod Phase 1 development Phase 1 Capex to IPC 100% first oil first oil Working Interest sanctioned Slave Lake in Feb 2023 late 2026 8
Slide 12: IPC Canada Blackrod Phase 1 Schedule
IPC Canada Blackrod Phase 1 Schedule 2023 2024 2025 2026 Civil Plan Build Facilities Workshop Manufacture Transport Construct CPF Commission Drilling Gas Pipeline 3 Party rd Transport Diluent Pipeline Lines Diluent Bitumen (Dilbit) Pipeline First Steam First Oil Start-up NC00312 p11 04.23 See Notes
Slide 13: IPC Canada Onion Lake Thermal
IPC Canada Onion Lake Thermal - Net Pay Onion Lake Thermal Pad L Strong production performance continues in Q1 2023 development projects Pad L on track for Q3 first steam Pad L Facility optimisation project ongoing Evaluating plant expansion upside Onion Lake Thermal Production 14,000 Low pricing Pl
Slide 14: IPC Canada Suffield Reserves and Production
IPC Canada Suffield Reserves and Production Suffield Area Assets 160 140 +47% 120 Strong performance from the oil and gas 100 MMboe producing assets in Q1 80 60 Moderate gas freeze-off period 40 Suffield Cor4 assets performing ahead of expectations 20 Reserves Cumulative - Production YE 2017 YE 2018
Slide 15: Suffield Asset Expansion - Cor4 Acquisition
Suffield/Alderson Assets IPC Canada Glauconitic extension Suffield Asset Expansion - Cor4 Acquisition Suffield 6 Ellerslie oil production wells budgeted in 2023 5 of which are in newly acquired Cor4 area Pekisko field Fair way lie 3 successfully completed in Q1 23 Ell e r s >30 Ellerslie drilling ta
Slide 16: IPC Malaysia Operations Update
IPC Malaysia Operations Update Acquired 25% interest in the Bertam field in 2021 IPC now has 100% interest Malaysia High facility uptime and strong base well performance in Q1 Bertam >99% uptime achieved Infills account for >60% of current production Rapid payback of 2022 capital program Assessing a
Slide 17: IPC France Operations Overview
IPC France Operations Overview Long life assets with low decline ~90% of 2P reserves developed and producing Stable operations in Q1 High uptime at all major producing fields Development drilling in 2023 Completed 3 well drilling program at Villeperdue West - in clean up Merisier 3H sidetrack comple
Slide 18: Sustainability & ESG
International Petroleum Corp. Sustainability & ESG Health and safety No material safety incidents YTD Climate strategy On track to achieve 50% net emissions intensity reduction by 2025 Commitment extended to end 2027 Compliant with Global Reporting Initiative (GRI) Alignment with Task Force on Clima
Slide 19: First Quarter 2023 Financial Highlights
First Quarter 2023 Financial Highlights 19
Slide 20: First Quarter 2023 Financial Highlights
First Quarter 2023 Financial Highlights First Quarter 2023 Production (boepd) 52,800 Average Dated Brent Oil Price (USD/boe) 81.2 Operating costs (USD/boe) 17.3 Operating cash flow (MUSD) 75.9 EBITDA (MUSD) 76.1 Capital expenditure (MUSD) 54.1 Free cash flow (MUSD) 16.3 Net result (MUSD) 39.6 Net ca
Slide 21: First Quarter 2023 Realized Oil Prices
First Quarter 2023 Realized Oil Prices 2023 2022 2022 2021 USD/bbl Q1 Q4 Q3 Q2 Q1 Full Year Full Year Brent 81.2 88.9 100.8 113.9 102.2 101.3 70.9 Malaysia 86.1 (+4.9) 93.8 (+4.9) 115.8 (+15.0) 121.5 (+7.6) 124.1 (+21.9) 111.9 (+10.6) 75.1 (+4.2) France 81.4 (+0.2) 88.7 (-0.2) 100.4 (-0.4) 113.7 (-0
Slide 22: First Quarter 2023 Realized Gas Prices
First Quarter 2023 Realized Gas Prices Q1 Q4 Q3 Q2 Q1 Full Year Full Year CAD/mcf 2023 2022 2022 2022 2022 2022 2021 AECO 3.17 5.03 4.08 7.17 4.76 5.23 3.63 Empress 3.28 5.93 7.03 7.81 4.96 6.42 3.90 Realised (to AECO) 3.60 (+0.43) 5.88(+0.85) 5.75 (+1.67) 7.81 (+0.64) 4.96 (+0.20) 6.11 (+0.88) 3.70
Slide 23: Financial Results – Operating Cash Flow & EBITDA
First Quarter 2023 Financial Results – Operating Cash Flow & EBITDA Operating Cash Flow EBITDA 160 160 140 145.1 145.5 140 120 120 100 100 Million USD Million USD 80 80 75.9 76.1 60 60 40 40 20 20 0 0 NC00312 fin p14 04.23 Q1 Q1 Q1 Q1 2023 2022 2023 2022 See Notes and Reader Advisory 23
Slide 24: First Quarter 2023 Operating Costs
First Quarter 2023 Operating Costs USD/boe operating costs USD/boe 20 20 2023 Operating Costs 18 18 Guidance: 17.5–18 USD/boe 16 16 14 14 12 12 10 10 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Actual Forecast Forecast Forecast NC00312 fin p17 04.23 See Notes and Reader Advisory 24
Slide 25: First Quarter 2023 Netback (USD/boe)
First Quarter 2023 Netback (USD/boe) First Quarter 2023 Average Dated Brent oil price (81.2 USD/bbl) Revenue 43.0 Cost of operations -15.0 Tariff and transportation -2.0 Production taxes -0.3 Operating costs -17.3 Cost of blending -10.1 Inventory movements 1.2 Revenue – production costs 16.8 Cash ta
Slide 26: First Quarter 2023 Net Cash (MUSD)
First Quarter 2023 Net Cash (MUSD) 300 300 Operating Cash Flow MUSD 75.9 250 250 Development capex MUSD -54.1 Cash Financial items MUSD -0.6 200 200 Opening Net Cash Share buyback Cash G&A 1 Jan 2023 MUSD -45.8 MUSD -3.8 MUSD 175.1 150 150 Acquisition of Cor4 100 MUSD -59.2 100 Closing Net Cash 31 M
Slide 27: First Quarter 2023 G&A / Financial Items
First Quarter 2023 G&A / Financial Items MUSD First Quarter 2023 Net interest expense 0.4 Amortisation of capitalised financing fees 0.4 Unwinding of asset retirement obligation discount 3.1 Foreign exchange loss (gain), net and others 1.1 Net Financial Items 5.0 MUSD First Quarter 2023 G&A 3.8 G&A
Slide 28: First Quarter 2023 Financial Results
First Quarter 2023 Financial Results Revenue MUSD 192.5 200 52,800 boepd 200 Production costs 150 MUSD -117.5 150 Million USD Million USD 100 100 Depletion MUSD -9.0 Financial items Cash Margin MUSD -5.0 MUSD 75.0 Gross profit Exploration and business MUSD 64.4 50 development costs G&A 50 MUSD -1.6
Slide 29: 31 March 2023 Balance Sheet
31 March 2023 Balance Sheet MUSD 31 Mar 2023 31 Dec 2022 Assets Oil and gas properties 1,077.8 963.4 Other non-current assets 94.8 77.7 Current assets 155.6 151.3 Cash 378.5 487.2 1,706.7 1,679.6 Liabilities Financial liabilities 8.0 8.7 Bonds (net of capitalised fees) 295.7 295.5 Provisions 233.1 2
Slide 30: Capital Structure
International Petroleum Corp. Capital Structure Bonds 300 MUSD 5 years - Maturity February 2027 7.25% coupon Interest payable February 1st and August 1st French unsecured loan 10.6 MEUR at March 31 2023 Maturity May 2026 Repayments of MEUR 0.8 quarterly Canadian RCF 75 MCAD => increased to 150 MCAD
Slide 31: Hedging
International Petroleum Corp. Hedging Historic WTI/WCS Differential (USD/bbl) 2023 Canadian Hedges 50 44.73 45 Oil hedging WCS - ARV: 12.0 mbo/d at -10 USD/bbl 40 35 Gas hedging 30 Apr-Oct 2023: 33,700 mcf/d @ AECO 4.10 CAD/mcf 25 20 2023 FX Hedges 15 Buy MCAD 15 at 1.36 and MEUR 3 at 1.00 per month
Slide 32: Q1 2023 Highlights
International Petroleum Corp. Q1 2023 Highlights Significant Record Production Low Operating Costs Capital Expenditure Q1 52.8 Mboepd Q1 17.3 USD/boe FY 365 MUSD FY 48-50 Mboepd FY 17.5-18 USD/boe (towards 50) Cash Flow Strong Balance Sheet Sustainability Focus Share Repurchase Q1 76 MUSD OCF Q1 Net
Slide 33: Notes
Notes Page 2: • For production figures, see Reader Advisory, including “Supplemental Information regarding Product Types” in “Reserves and Resource Advisory”. • Operating cash flow (OCF), free cash flow (FCF), earnings before interest, tax, depreciation and amortization (EBITDA), operating costs and
Slide 34: Notes
Notes Page 13: • For production figures, see Reader Advisory and AIF. Page 14: • For production figures, see Reader Advisory and AIF Page 15: • For production figures, see Reader Advisory and AIF. Page 16: • For production figures, see Reader Advisory and AIF. Page 17: • For production figures, see
Slide 35: 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 36: 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 37: 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, 2022, and are included in the report prepared by ERC Equipoise Ltd. (ERCE), an independent qualified res
Slide 38: Reader Advisory
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
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