InPlay Oil (IPO) Q1 2025 earnings summary

Executive summary

• Completed the strategic acquisition of Cardium light oil assets in Pembina, driving significant operational and financial outperformance in Q1 2025.

• Achieved average quarterly production of 9,076 boe/d, up 5% year-over-year and ahead of forecasts.

• Strong initial production rates from new wells, with several outperforming internal type curves by 50% to 350%.

• Returned $4.1 million to shareholders via dividends, representing a 16% yield.

Financial highlights

• Q1 2025 oil and natural gas sales were $38.9 million, up slightly from $38.0 million in Q1 2024.

• Adjusted funds flow (AFF) for Q1 2025 was $16.8 million ($1.10 per basic share).

• Comprehensive loss of $2.9 million in Q1 2025, compared to income of $1.7 million in Q1 2024.

• Net debt at quarter-end was $63 million, with a net debt to EBITDA ratio of 0.8x.

• Operating income profit margin remained strong at 54%.

Outlook and guidance

• 2025 capital budget updated to $53–$60 million, a 30% reduction from initial expectations due to asset outperformance.

• Forecasted average annual production of 16,000–16,800 boe/d, a 15% increase in production per share versus 2024.

• AFF guidance for 2025 is $124–$133 million; free adjusted funds flow (FAFF) of $68–$76 million.

• Year-end net debt projected at $213–$221 million, with a net debt to EBITDA ratio of 1.1x–1.3x.

• Dividend guidance for 2025 is $26–$27 million.