InPlay Oil (IPO) Q4 2025 earnings summary

Executive summary

• Completed a transformational acquisition of Cardium-focused light oil assets in Pembina, boosting drilling inventory and operational scale.

• Delek Group became a 32.7% strategic shareholder, enhancing financial strength and access to capital.

• Achieved record light oil production growth of 131% and total proved plus probable reserve replacement of 1,084%.

• Adjusted Funds Flow (AFF) rose 67% year-over-year to $114.4 million, with Free Adjusted Funds Flow (FAFF) of $62 million.

• Paid $27.1 million in dividends and repaid $35 million in net debt post-acquisition.

Financial highlights

• Annual production averaged 17,043 boe/d (61% light crude oil and NGLs), up 96% from 2024.

• Operating income reached $144.1 million, a 75% increase, with a 49% profit margin.

• Oil and natural gas sales totaled $291.4 million, up from $153.7 million in 2024.

• Comprehensive loss of $7.8 million due to $10.8 million in one-time acquisition costs and higher non-cash charges.

• Capital expenditures were $52 million, 17% lower than 2024 and $1 million below budget.

Outlook and guidance

• 2026 capital budget set at $66–$74 million to drill 12–14 net Cardium wells.

• Forecasted 2026 average production of 18,600–19,200 boe/d (60–62% light crude oil and NGLs), up 11% from 2025.

• Expected 2026 FAFF yield of 11–15% and continued focus on capital returns to shareholders.

• Guidance based on WTI at $63/bbl, AECO at $2.35/GJ, and FX rate of 0.73 CAD/USD.