International Petroleum (IPCO) Q4 2023 earnings summary

Executive summary

• Record 2023 production of 51.1 Mboepd; operating cash flow was $353.0M, EBITDA $350.6M and year-end net cash $58.1M.

• Full-year free cash flow was $2.7M including Blackrod, or $243M excluding Blackrod; capital expenditure was $326.7M.

Financial highlights

• 2023 revenue was $853.9M, gross profit $250.5M and net result $173.0M; Q4 net result was $29.7M.

• Full-year OCF of $353.0M and EBITDA of $350.6M compared with $622.9M and $639.5M, respectively, in 2022.

• Q4 OCF was $73.6M, EBITDA $66.3M and FCF -$64.7M; full-year FCF was $2.7M including Blackrod and $243M excluding it.

• 2023 average Brent was $82.6/bbl versus $101.3/bbl in 2022; full-year capital expenditure was $326.7M, including $8M of decommissioning spend.

Outlook and guidance

• 2024 average net production forecast: 46,000–48,000 boepd, with approximately 51% heavy oil, 15% light and medium crude, and 34% conventional natural gas.

• Estimated FCF outlook assumes average production of ~55 Mboepd in 2024–2028 and ~65 Mboepd in 2029–2033; Brent assumptions are $75–$95/boe, escalating 2% annually.

• Guidance and forecasts depend on business plans and commodity-price, production, cost, regulatory and financing assumptions; actual outcomes may differ materially.