International Petroleum Corp. (british Columbia) · OMXSTO:IPCO
International Petroleum Corp. (british Columbia) — International Petroleum — Investor Presentation (June 2024)
63 slides from International Petroleum Corp. (british Columbia)'s investor presentation, June 2024
Slide 1: Corporate Presentation
Corporate Presentation June 2024 Canada France Malaysia International Petroleum Corp. Nasdaq Stockholm: IPCO TSX: IPCO
Slide 2: Q1 2024 Highlights
International Petroleum Corp. Q1 2024 Highlights Record Investment Year Q1 2024 Production Stable Operating Costs 125 MUSD Q1 2024 48.8 Mboepd 17.1 USD/boe (437 MUSD FY2024) 2023/24 Strong Cash Flow Robust Balance Sheet Share Repurchase Sustainability Focus 89 MUSD OCF 61 MUSD Net Debt 3.0 million N
Slide 3: Reserves Growth
International Petroleum Corp. Reserves Growth 2P Reserves and Production Cor4 (MMboe) 471 468 Since inception, greater than 100 MMboe produced Blackrod 2P reserves of 468 MMboe as at December 31, 2023 Granite Reserves life index (RLI) of 27 years 288 300 272 270 BlackPearl 129 Reserve Life Index (Ye
Slide 4: Strongly Positioned to Create Stakeholder Value
International Petroleum Corp. Strongly Positioned to Create Stakeholder Value 2024 – 2028 Production Free Cash Flow 111% Brent 22% p.a. Organic Growth 95 USD >1,800 MUSD Stakeholder Returns ~ 55 Mboepd Brent 56% 75 11% p.a. USD M&A >900 MUSD NCF00237 p02 10.23 See Notes and Reader Advisory IPC 4
Slide 5: Production Forecast
International Petroleum Corp. Production Forecast Material production growth driven by the Blackrod Phase 1 development Blackrod 10 year outlook based on proved plus probable reserves (2P) Future Phases 80 ~55 Mboepd ~65 Mboepd 70 60 50 Blackrod Phase 1 40 Mboepd 30 20 10 NCF00237 p10 10.23 0 2024 2
Slide 6: Blackrod - A World Class Resource
International Petroleum Corp. Blackrod - A World Class Resource Blackrod Capital Resources Expenditure Knowledge 10+ years 1,283 MMbbl Full field development 850 MUSD Successful pilot Blackrod Phase 1 Pre production 218 MMbbl Phase 1 (Nominal) Local expertise development in SAGD operations Productio
Slide 7: Contingent Resources Growth
International Petroleum Corp. Contingent Resources Growth 2C Contingent Resources (MMboe) 1,410 128 Blackrod Phase 1 1,162 1,145 More than 1.1 Billion boe to drive organic growth 1,089 1,102 96 80 Blackrod future phases 102 115 Additional development opportunities in Canada 849 Further infill drilli
Slide 8: Strongly Positioned to Create Stakeholder Value
International Petroleum Corp. Strongly Positioned to Create Stakeholder Value 2024 – 2028 Production Free Cash Flow 111% Brent 22% p.a. Organic Growth 95 USD >1,800 MUSD Stakeholder Returns ~ 55 Mboepd Brent 56% 75 11% p.a. USD M&A >900 MUSD NCF00237 p03 10.23 See Notes and Reader Advisory IPC 8
Slide 9: Share Repurchase
International Petroleum Corp. Share Repurchase 64.1 million IPC shares repurchased since inception at an average price of SEK 66 per share On track to complete share repurchases under 2023/2024 NCIB -25.5 -8.4 -9.6 +75.8 -8.3 -9.3 -3.0 ~5x production 125.2 10% 113.5 Dilution >16x 2P reserves Million
Slide 10: Market Cap Liquidation
International Petroleum Corp. Market Cap Liquidation 4,600 MUSD 95 USD/bbl 2,650 MUSD 75 USD/bbl 1,800 Market Cap MUSD 95 USD/bbl 1,615 MUSD April 30, 2024 900 MUSD 75 USD/bbl Market Capitalisation 5 year forecast FCF 10 year forecast FCF (2024 to 2028) (2024 to 2033) NCF00237 p08 10.23 See Notes an
Slide 11: Strongly Positioned to Create Stakeholder Value
International Petroleum Corp. Strongly Positioned to Create Stakeholder Value 2024 – 2028 Production Free Cash Flow 111% Brent 22% p.a. Organic Growth 95 USD >1,800 MUSD Stakeholder Returns ~ 55 Mboepd Brent 56% 75 11% p.a. USD M&A >900 MUSD NCF00237 p04 10.23 See Notes and Reader Advisory IPC 11
Slide 12: Value Created from Acquisitions
International Petroleum Corp. Value Created from Acquisitions 2.5 Billion USD in value added from 5 accretive acquisitions Pre Blackrod funding, FCF generated from acquisitions equals 91% of total acquisition price MUSD 0 500 1,000 1,500 2,000 2,500 3,000 3,500 Total acquisition price 937 MUSD FCF f
Slide 13: Net Asset Value (MUSD)
International Petroleum Corp. Net Asset Value (MUSD) 3,081 (244 SEK/sh) 32.1 CAD/sh 48% Opening net cash +58 3,023 discount to NAV e d dd e a a lu 1,615 D v (141.7 SEK/sh) 17.7 CAD/sh U S i o n ill .2 5 b 543 2017 YE 2023 IPCO NAV 8 NAV 10 Market Cap NCF00237 p12 10.23 See Notes and Reader Advisory
Slide 14: Creating Stakeholder Value - 5 Year + 5 Year Free Cash Flow
International Petroleum Corp. Creating Stakeholder Value - 5 Year + 5 Year Free Cash Flow 2024 – 2028 2029 – 2033 Production Free Cash Flow Production Free Cash Flow 111% 173% Brent 22% p.a. >75% of 2P Brent 35% p.a. 95 Reserves Remaining 95 USD USD >1,800 MUSD >2,800 MUSD ~ 55 ~65 Mboepd Brent 56%
Slide 15: The Power of Growth and Buybacks
International Petroleum Corp. The Power of Growth and Buybacks Point forward NAV10/share estimates as at January 1, 2029, assuming the following over the period of 2024 - 2028: 4 CAD/share 1 No share buybacks 161 CAD/share +30 SEK/share 1,230 2 Share buybacks up to NCIB limits 3 Share buybacks using
Slide 16: Sustainability
International Petroleum Corp. Sustainability Scope 1 Net Emission intensity (kg CO2e/boe) Canadian 59 Committed to a strong safety culture • No material safety incident in Q1 2024 2019 40 2020 33 2021 28 Pursuing our climate strategy • On track to achieve 50% net emissions intensity reduction by 202
Slide 17: Appendix
Appendix
Slide 18: 2024 Overview
International <4 Petroleum Corp. 2024 Overview
Slide 19: Reserves and Contingent Resources
2P Reserves International Petroleum Corp. International, 3% Canada Gas, 14% Reserves and Contingent Resources Canada Other Oil, 9% Year end 2023 2P reserves of 468 MMboe Total 78% reserves replacement 468 MMboe IPC reserve life index 27 years Continued focus on contingent resource maturation Canada
Slide 20: 2024 Production Operations
International Petroleum Corp. 2024 Production Guidance 2024 Production Operations International, 13% 2024 production guidance of 46 to 48 Mboepd Br ent Canada Gas, 34% G Low decline rate with limited base business investment as W CS 2024 full year operating expenditure guidance range of 18 to 19 USD
Slide 21: 2024 Capital Expenditure
International Petroleum Corp. 2024 Capital Expenditure 2024 Expenditure 437 MUSD Blackrod 362 Non-Blackrod 67 Decommissioning 8 Canada 413 MUSD France • Blackrod Phase 1 3 MUSD • Suffield Area drilling • Optimization activity • Ferguson drilling • Development studies • Mooney Ph 2 EOR Malaysia 21 MU
Slide 22: 5 Year + 5 Year Outlook
International Petroleum Corp. Production Outlook 5 Year + 5 Year Outlook ~65 Mboepd forecast average ~55 Mboepd net production forecast average net production Strongly positioned for long-term growth ~55 Mboepd forecast average net production over the next 5 years 75% of 2P reserves remaining beyond
Slide 23: Hedging
International Petroleum Corp. Hedging 2024 Hedges 2025 Hedges Q1 2024: 6,250 bbl/d @ 81 USD/bbl Oil WTI Q2-Q4 2024: 12,250 bbl/d @ 80 USD/bbl Oil WTI-WCS 2024: 17,700 bbl/d @ -15 USD/bbl differential Oil Brent Q2-Q4 2024: 3,000 bbl/d @ 85 USD/bbl 2024: Buy 20 MCAD/month @ 1.36 (sell USD) Buy 11.5 MM
Slide 24: 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 2025 Undrawn at end Q1 2024 Letters of credit posted MCAD 5.2 French unsecured loan MEUR 7.4 at March 2024 Maturity May 2
Slide 25: Asset Overview Canada
International — Petroleum Corp. Asset Overview Canada
Slide 26: IPC Canada Overview
IPC Canada Overview Alberta Saskatchewan Peak spend year at Blackrod Phase 1 development Blackrod Heavy oil Non-Blackrod development expenditure - Suffield Area Ellerslie drilling Edmonton Onion Lake - Ferguson development drilling Heavy oil - Mooney Phase 2 EOR flood - Production optimization at va
Slide 27: IPC Canada Blackrod Phase 1 Progress Update
IPC Canada Blackrod Phase 1 Progress Update Overall project scope, schedule and budget on track Facility engineering and fabrication progressing on schedule Major equipment delivery and field construction progressing Drilling activity progressing ahead of schedule Third party pipeline installation u
Slide 28: Blackrod Phase 1 Schedule - Major Activity Year
IPC Canada Blackrod Phase 1 Schedule - Major Activity Year 2023 TODAY 2024 2025 2026 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 29: Onion Lake Thermal Production
Well Path Reservoir OLT Main Facility IPC Canada Pads Onion Lake Thermal Area First 5 Pad L Wells Onion Lake Thermal D’ E L A C B Strong performance continues in Q1 2024 F Oil pipeline Five Pad L production wells online and performing ahead of expectation 2024 outlook Ramp up of Pad L continues with
Slide 30: IPC Canada Suffield Reserves and Production
IPC Canada Suffield Reserves and Production 160 Suffield Area Assets 140 +45% 120 100 Strong performance from oil and gas producing assets MMboe 80 Moderate winter freeze-off impact on gas production 60 40 Focus on Ellerslie play oil well drilling in 2024 20 Reserves Cumulative - Production YE 2017
Slide 31: IPC Canada Suffield Area Drilling Activity
IPC Canada Suffield/Alderson Assets Glauconitic Suffield Oil area Suffield Gas area Suffield Area Drilling Activity extension Suffield Brooks (Cor4) assets Suffield 5 Ellerslie production wells budgeted in 2024 3 wells successfully completed in Q1 2024 Maintain ability to ramp-up Ellerslie drilling
Slide 32: IPC Canada Other Assets Overview
Major Oil pipeline Major Gas pipeline IPC Canada IPC asset Other Assets Overview Mooney Blackrod Stable production close to 3,000 boepd from other Canadian assets Production well infill program drilling at Ferguson EOR polymer flood at Mooney Phase 2 initiated in Q1 2024 Edmonton Onion Lake Producti
Slide 33: Asset Overview International
Asset Overview International
Slide 34: IPC International Overview
France IPC International 0 KM 200 Overview Paris Basin France Aquitaine Basin Continued focus on operational excellence Mature next phase of Malaysia field development targets South China Sea Malaysia well workovers complete Malaysia Bertam Kuala Lumpur Natuna Sea NCF00328 p14 10.23 Singapore Indone
Slide 35: IPC Malaysia Operations Overview
IPC Malaysia Operations Overview High facility uptime and strong base well performance in Q1 2024 99% uptime achieved North east wells (A20, A15st) continue to deliver strong results Malaysia Bertam Field development studies focusing on the north east structure Bertam Field Production (Net IPC) Base
Slide 36: IPC France Operations Overview
IPC France Paris Basin Operations Overview France Aquitaine Basin Stable operations in Q1 2024 Well maintenance successfully completed Mature next phase of development opportunities Building on the positive results from the 2023 campaign bopd France Production 4,000 Political New wells Wells protest
Slide 37: 2024 Summary
International Petroleum Corp. 2024 Summary Production Production 46 to 48 Production Range of 46,000 to 48,000 boepd Mboepd 5 year business plan targets ~55 Mboepd Production growth to ~65 Mboepd Investments Capex Blackrod Phase 1 development 437 MUSD Moderate base business investments Further oppor
Slide 38: Financial Overview
Ht jj 2 il ponte 5 | ZA a a International a cy — Petroleum Corp. Financial Overview
Slide 39: Shareholder Distribution Framework
International Petroleum Corp. Shareholder Distribution Framework Brent/WTI/WCS 70/65/50 USD/bbl 80/75/60 USD/bbl 90/85/70 USD/bbl Forecast 2024 FCF from 208 228 248 base business (MUSD) Forecast 2024 Blackrod 362 362 362 capex (MUSD) Forecast 2024 FCF post -154 -134 -114 Blackrod capex (MUSD) Gross
Slide 40: 2024 CMD Economic Assumptions
International Petroleum Corp. 2024 CMD Economic Assumptions Low Case Base Case High Case 2023 Actual Oil in USD/bbl Brent 70 80 90 83 WTI 65 75 85 78 WCS 50 60 70 59 Gas in CAD/mcf AECO 2.13 2.13 2.13 2.61 Sensitivities WTI-WCS differential (USD/bbl) +/- 5 USD/bbl AECO gas price (CAD/mcf) +/- 1.00 C
Slide 41: 2024 CMD Guidance
International Petroleum Corp. 2024 CMD Guidance Main Assumptions Production 46,000 to 48,000 boepd Capital Expenditure 437 MUSD Operating Costs 18.2 USD/boe Forecast Base Case Financials USD/boe Revenue 47.5 Operating Cash Flow 18.5 EBITDA 18.1 Free Cash Flow (excluding Blackrod) 11.9 Free Cash Flow
Slide 42: Realised Oil and Gas Prices
International Petroleum Corp. Realised Oil and Gas Prices Actual Forecast Actual Q1 2024 2024 2023 2022 2021 Oil Brent 83.2 80.0 82.6 101.3 70.9 (USD/bbl) Malaysia 91.6 (+8.4) 85.0 (+5.0) 91.0 (+8.4) 111.9 (+10.6) 75.1 (+4.2) France 82.9 (-0.3) 79.9 (-0.1) 81.9 (-0.7) 98.3 (-3.0) 71.0 (+0.1) WTI 76.
Slide 43: Margin Netback (USD/boe)
International Petroleum Corp. Margin Netback (USD/boe) Q1 2024 2024 Forecast 2023 Actual Low Base High Actual Brent/WTI/WCS (USD/bbl) (83/77/58) (70/65/50) (80/75/60) (90/85/70) (83/78/59) Production Guidance 48,800 46,000–48,000 51,100 Revenue 46.5 42.5 47.5 52.5 46.4 Cost of operations -14.6 -15.4
Slide 44: 2024 Operating Costs (USD/boe)
International Petroleum Corp. 2024 Operating Costs (USD/boe) USD/boe Quarterly operating costs USD/boe 24 24 22 22 OLT turnaround 20 20 2024 Operating Costs Guidance: 18.0-19.0 USD/boe 18 16 16 14 14 12 12 10 10 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Actual Forecast Forecast Forecast NC00355 fin p02 04.24
Slide 45: Operating Cash Flow and EBITDA Netback (USD/boe)
International Petroleum Corp. Operating Cash Flow and EBITDA Netback (USD/boe) Q1 2024 2024 Forecast 2023 Actual Low Base High Actual Brent/WTI/WCS (USD/bbl) (83/77/58) (70/65/50) (80/75/60) (90/85/70) (83/78/59) Cash Margin Netback 20.4 15.2 19.0 22.7 19.7 Cash Taxes -0.3 -0.2 -0.5 -0.8 -0.8 Operat
Slide 46: Profit Netback (USD/boe)
International Petroleum Corp. Profit Netback (USD/boe) 2024 Forecast 2023 Low Base High Actual Brent/WTI/WCS (USD/bbl) (70/65/50) (80/75/60) (90/85/70) (83/78/59) Cash Margin Netback 15.2 19.0 22.7 19.7 Depletion/depreciation -7.5 -7.5 -7.5 -6.0 Business development and exploration costs -0.1 -0.1 -
Slide 47: Oil Sensitivity to WTI/WCS Differential
International Petroleum Corp. Oil Sensitivity to WTI/WCS Differential 2024 Forecast Base Case WTI oil price (USD/bbl) 80 80 WTI/WCS Differential (USD/bbl) 15 20 Difference Total Revenue (USD/boe) 47.5 47.0 -0.5 Operating Cash Flow (USD/boe) 18.5 18.0 -0.5 EBITDA (USD/boe) 18.1 17.6 -0.5 - ~70% of Ca
Slide 48: Gas Sensitivity to Realised Canadian Gas Price
International Petroleum Corp. Gas Sensitivity to Realised Canadian Gas Price 2024 Forecast Base Case Gas price (CAD/mcf) 2.13 3.13 Difference Total Revenue (USD/boe) 47.5 48.8 +1.3 Operating Cash Flow (USD/boe) 18.5 19.5 +1.0 EBITDA (USD/boe) 18.1 19.1 +1.0 See Notes and Reader Advisory IPC 48
Slide 49: Free Cash Flow (USD/boe)
International Petroleum Corp. Free Cash Flow (USD/boe) 2024 Forecast 2023 Low Base High Actual Brent/WTI/WCS (USD/bbl) (70/65/50) (80/75/60) (90/85/70) (83/78/59) Operating Cash Flow Netback 15.0 18.5 21.9 18.9 Cash General and Administration Costs -0.9 -0.9 -0.9 -0.9 Cash Financial Items -1.5 -1.4
Slide 50: Reserves Valuation
Corp. 4 if’ International . — Petroleum » Reserves Valuation
Slide 51: Long-term Pricing Forecast
International Petroleum Corp. Long-term Pricing Forecast Brent USD/bbl Western Canadian Select (WCS) USD/bbl Empress Gas Price CAD/mcf 110 80 6.5 6.54 76 6.0 100 99 72 71 70 70 69 67 5.5 66 65 90 64 63 4.96 4.91 5.0 4.75 61 4.63 4.72 82 60 59 4.85 4.82 80 4.5 4.66 55 4.34 71 4.0 3.90 CAD/mcf USD/bbl
Slide 52: Net Present Value per Share
International Petroleum Corp. Net Present Value per Share NPV10 2P 2P NPV10 (SEK/share) 3,023 MUSD Malaysia/France NPV10 1P Canada other incl. tax 18 Onion Lake Thermal 2,147 22 MUSD Enterprise Value 1,676 MUSD 85 240 Suffield Area 40 SEK/share NPV10 PDP 961 MUSD 79 76 170 240 Blackrod SEK/share SEK
Slide 53: Net Asset Value (NAV) Changes (MUSD)
International Petroleum Corp. Net Asset Value (NAV) Changes (MUSD) 3,545 +113 3,432 +58 3,081 3,023 2,258 2,151 -94 2,058 -290 2,164 -277 1,861 1,781 1,450 -321 1,061 1,129 -355 Net Cash 706 Net Debt 2P NPV10 YE17 YE18 YE19 YE20 YE21 YE22 YE23 86 5-Year Average Reserves 81 Auditor Brent Price 72 70
Slide 54: Conclusion
International — Petroleum Corp.
Slide 55: Conclusions
International Petroleum Corp. Conclusions Production Growth Value 2024 Production Guidance Blackrod Phase 1 2P value >3 BUSD NAV 10 46-48 Mboepd 218 MMboe Growth to 65 Mboepd 981 MUSD value 244 SEK/share Shareholders Sustainability Balance Sheet M&A Return Focus 397 MUSD Emissions reduction 7% share
Slide 56: Notes
Notes Page 2: Q1 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 57: Notes
Notes Page 14: Creating Stakeholder Value - 5 Year + 5 Year Free Cash Flow • See Notes for Page 4: “Strongly Positioned to Create Stakeholder Value”. • 2P reserves as at January 1, 2029 assumed to be 2P reserves as at December 31, 2023 less estimated production over the period of 2024 to 2028. See R
Slide 58: Notes
Notes Page 35: Malaysia Operations Overview • For production figures, see Reader Advisory and AIF, including “Reserves and Resources Advisory”. Page 36: France Operations Overview • For production figures, see Reader Advisory and AIF, including “Reserves and Resources Advisory”. • 2P reserves are as
Slide 59: 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 60: 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 months ended March 31, 2024 (MD&A) (See “Risk Fa
Slide 61: Reader Advisory
Reader Advisory Contingent resources are further classified based on project maturity. The project maturity subclasses include development pending, development on hold, development unclarified and development not viable. All of the Corporation’s contingent resources are classified as either developm
Slide 62: Reader Advisory
Reader Advisory Currency All dollar amounts in this presentation are expressed in United States dollars, except where otherwise noted. References herein to USD mean United States dollars. References herein to CAD mean Canadian dollars. Oil related terms and measurements AECO The daily average benchm
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