International Petroleum (IPCO) Q1 2026 earnings summary

Executive summary

• Q1 2026 production averaged 43,000 BOE/day, at the high end of guidance, with strong operational performance and cost discipline; production mix was 52% heavy crude, 15% light/medium crude, and 33% natural gas.

• Full-year production guidance maintained at 44,000–47,000 BOE/day, with significant ramp expected in H2 as Blackrod Phase I comes online.

• Capital program for 2026 increased to $163 million, mainly for accelerated drilling in Canada and France, reflecting higher commodity prices.

• Blackrod Phase I remains ahead of schedule, with first oil expected in Q3 2026 and cumulative spend reaching $842 million.

• No material safety or environmental incidents reported in Q1 2026.

Financial highlights

• Q1 2026 revenue was $173 million, with operating cash flow of $67.7 million, EBITDA of $64.3 million, and gross profit of $37.2 million.

• Q1 free cash flow was negative at $-17.1 million due to front-loaded CapEx; positive free cash flow expected in H2 2026.

• Net profit for Q1 was $12.8 million; EPS was $0.11 (basic and diluted).

• Net debt increased to $513 million at quarter-end, mainly due to Blackrod project funding.

• Operating costs per BOE were $17.6, below guidance.

Outlook and guidance

• Full-year 2026 production guidance reaffirmed at 44,000–47,000 BOE/day, with higher exit rates expected as Blackrod comes online.

• Operating cost guidance unchanged at $18–20/BOE.

• OCF guidance for 2026 raised to $220–340 million (Brent $70–90/bbl); FCF guidance revised to $0–120 million.

• Major boost in free cash flow anticipated in 2027 and beyond as Blackrod ramps up.

• Capital and decommissioning expenditure guidance increased to $163 million.