International Petroleum Corporation (IPCO) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to IPC's 2026 second quarter results update presentation. I'm William Lundin, the President and CEO, and joined today by Christophe Nerguararian, our CFO, as well as Rebecca Gordon, our SVP of Corporate Planning and Investor Relations. I'll begin with the highlights and provide an operational update, then hand it to Christophe to walk through the financial section. After the presentation, we can take questions, which the audience can submit through conference call or via the internet online. Getting right into the second quarter highlights for IPC. Our average production for the second quarter was right in line with guidance at 42.2 thousand barrels of oil equivalent per day. And our full year 2026 production guidance is maintained at 44 to 47 thousand BOEs per day. Second quarter operating costs came in line with expectation at USD $19.10 per BOE. And the OPEX per BOE forecast for the full year is maintained as per the original CMD guidance at USD 18 to 20 per BOE. And of course, the major announcement in the quarter for the company was achieving first oil at Blackrod. It's the largest organic growth project IPC has undertaken since formation in 2017. And to execute ahead of schedule and on budget is a huge achievement that we're very, very pleased about. Similar to production and OPEX per BOE guidance, we're maintaining our CAPEX guidance at $163 million USD for 2026, noting the majority of the capital has been spent in the first half of $120 million USD or around three quarters of that capital budget. Q2 capital spend was $49 million. Operating cash flow for Q2 was robust at 67 million USD. Noting oil prices were higher in the second quarter relative to the first quarter, averaging around $100 barrel Brent. But 40% of our production exposure, oil productio...