InPlay Oil (IPO) Q2 2025 earnings summary

Executive summary

• Completed a transformative acquisition of Cardium-focused light oil assets, enhancing scale, market capitalization, and long-term sustainability.

• Q2 2025 marked the first quarter post-acquisition, with seamless integration and no operational disruptions.

• Delek Group became a 32.7% strategic shareholder, bringing significant industry expertise.

Financial highlights

• Q2 2025 production averaged 20,401 boe/d, up 125% from Q1 2025, with 62% light crude oil and NGLs.

• Adjusted funds flow reached $40.1 million ($1.49 per basic share), up 138% from Q1 2025.

• Free adjusted funds flow (FAFF) was $35.5 million ($1.32 per share), enabling $26 million net debt reduction.

• Operating income was $50.5 million, a 140% increase from Q1 2025, with a 55% profit margin.

• Net loss of $3.2 million, but adjusted net income (excluding one-time items) was $2.0 million.

• $7.9 million returned to shareholders via dividends, representing a 10% yield.

Outlook and guidance

• 2025 average production expected at the upper end of guidance (16,000–16,800 boe/d).

• Capital spending projected in the lower half of the $53–$60 million budget.

• FAFF forecasted at $68–$76 million for 2025, with a yield of 35–40%.

• Net debt to EBITDA ratio targeted at 1.1–1.3 for 2025.

• Continued focus on debt reduction and shareholder returns through dividends.