Highlights 

  • Q3 2025 production averaged 45,900 boepd, exceeding guidance. 
  • Blackrod Phase 1 now targets first oil by Q3 2026, earlier than previously planned. 
  • MUSD 450 bond refinancing completed, extending maturity to October 2030. 

International Petroleum Corporation (TSX:IPCO) announced its financial and operational results for the third quarter ended September 30, 2025. The company reported average net production of 45,900 barrels of oil equivalent per day, surpassing its guidance range. Production comprised 53% heavy crude oil, 14% light and medium crude oil, and 33% natural gas. 

President and CEOWilliam Lundincommented: 

“We are pleased to report another strong quarter for IPC, with production averaging 45,900 boepd—above our guidance range. Strong operational execution supported solid financial results during the quarter. 

At the Blackrod asset, we achieved excellent progress on the transformational Phase 1 development. We now anticipate first steam by year-end 2025 and first oil by Q3 2026—one quarter ahead of our initial plan. This reflects the strength of our team and disciplined execution. With these advances, we have accelerated drilling on the final well pad into Q4 2025. The growth capital budget for Blackrod Phase 1 remains unchanged at MUSD 850 to first oil in 2026.” 

Financial Performance 

For Q3 2025, IPC reported revenue of USD 172.3M and net income of USD 3.8M, compared to USD 22.9M in Q3 2024. Operating cash flow totaled MUSD 66, and EBITDA reached MUSD 62. Free cash flow stood at MUSD -23 (or MUSD 36 before Blackrod-related capital expenditures). 

Operating costs averaged USD 17.9 per boe, slightly below guidance. Capital and decommissioning expenditure amounted to MUSD 82 for the quarter. As of September 30, 2025, IPC reported gross cash of MUSD 45 and net debt of MUSD 435. 

Blackrod Phase 1 Development 

IPC’s 100%-owned Blackrod project continued to advance ahead of plan. Construction of the Central Processing Facility is nearing completion, with commissioning activities progressing smoothly. The company expects first steam by year-end 2025 and first oil by Q3 2026. 

Cumulative spending on the project has reached MUSD 785, or roughly 92% of the MUSD 850 budget to first oil. Remaining capital expenditures are expected to be funded through operating cash flow, available cash reserves, and IPC’s Canadian credit facility. 

Bond Refinancing and Share Repurchase 

During Q3 2025, IPC successfully refinanced MUSD 450 in unsecured bonds, extending maturity to October 2030 with a 7.5% annual coupon. 

The company also completed its 2024–2025 Normal Course Issuer Bid, repurchasing and cancelling approximately 7.5 million shares, representing 6.2% of the total shares outstanding since December 2024. 

Subject to approval by the Toronto Stock Exchange, the board has authorized renewal of the NCIB for December 2025–2026, allowing IPC to repurchase up to 6.5 million additional shares. 

2025 Outlook 

IPC reaffirmed its 2025 production guidance of 43,000–45,000 boepd. Operating cost guidance remains between USD 18–19 per boe, while OCF is expected to range from MUSD 245–255. FCF is projected between MUSD -170 and -160, reflecting ongoing Blackrod investments. 

Total capital and decommissioning expenditures have been revised to MUSD 340, including MUSD 250 allocated to the Blackrod project.