InPlay Oil (IPO) Q1 2026 earnings summary

Executive summary

• Achieved average quarterly production of 18,337 boe/d, up 102% year-over-year, with 61% light crude oil and NGLs.

• Light oil production rose 157% year-over-year to 8,813 bbl/d, improving oil weighting and netbacks.

• Closed an oversubscribed C$244 million senior unsecured bond offering at 6.23% interest, fully hedged for four years.

• Returned $7.6 million to shareholders via dividends, totaling $75 million since November 2022.

• Executed an active drilling program with five Pembina ERH wells, with initial production rates exceeding expectations.

Financial highlights

• Operating income reached $45.6 million, up 117% year-over-year and 20% sequentially, with a 52% profit margin.

• Adjusted funds flow (AFF) was $30.1 million ($1.08 per basic share), up 80% year-over-year.

• Net loss of $34.6 million, including a $39 million unrealized loss from mark-to-market hedges.

• Oil and natural gas sales totaled $88.4 million, up from $38.9 million in Q1 2025.

• Quarterly dividends paid were $7.6 million (6.1% yield), with capital expenditures of $22.9 million.

Outlook and guidance

• 2026 average annual production guidance reiterated at 18,600–19,200 boe/d (60–62% light oil and NGLs).

• WTI price forecast raised to US$81.50 for the remainder of 2026, increasing AFF guidance midpoint from $125 million to $147 million.

• Free adjusted funds flow (FAFF) guidance midpoint increased from $55 million to $77 million, with a FAFF yield of 15%.

• Net debt to EBITDA forecasted at 1.1x for 2026.