InPlay Oil (IPO) Q2 2024 earnings summary

Executive summary

• Achieved average Q2 2024 production of 8,657 boe/d (59% light crude oil and NGLs), up 2% year-over-year.

• Adjusted funds flow (AFF) reached $20.1 million, up 22% sequentially; free adjusted funds flow (FAFF) was $14.0 million, reducing net debt by 15% from March 31, 2024.

• Returned $4.1 million to shareholders via dividends in Q2, with an annualized yield of 8.2%.

• Renewed $110 million revolving Senior Credit Facility, adding a new syndicate member.

• Net income for Q2 was $5.4 million ($0.06 per share).

Financial highlights

• Q2 2024 oil and gas sales were $41.5 million, up from $39.8 million in Q1 2024.

• AFF per share was $0.22 basic, $0.22 diluted; comprehensive income per share was $0.06 basic and diluted.

• Operating income profit margin improved to 58% from 57% in Q1 2024.

• Field operating netbacks increased 16% sequentially.

• Capital expenditures for Q2 were $6.2 million.

Outlook and guidance

• 2024 capital budget remains $64–$67 million, with well count reduced to 12.6.

• Annual production guidance revised down 4% to 8,700–9,000 boe/d (58–60% light crude oil and NGLs).

• AFF forecasted at $80–$85 million for 2024, with FAFF of $13–$21 million.

• Net debt/EBITDA projected at 0.5x–0.6x for 2024.

• Most new wells to come online in late Q4 to capture higher winter gas prices.