Q2 2026 International Petroleum Corp Earnings Call Transcript
Key Points
- Achieved first oil at Blackrod ahead of schedule and on budget, marking a major milestone for the company.
- Production for Q2 2026 was in line with guidance at 42,200 BOE per day, with full-year guidance maintained.
- Reported positive free cash flow of $4 million in Q2, the first since 2023, signaling a financial turning point.
- Operating cash flow was robust at $67 million for Q2, with full-year forecast of $230-$330 million.
- No benchmark oil hedging going forward, providing full exposure to higher oil prices and significant torque to price increases.
- Net debt remains high at $509 million, with only a marginal reduction in Q2.
- Q3 operating costs per BOE are expected to be higher due to expensed production enhancement activities.
- Canadian natural gas prices remain weak, trading at a discount to US prices.
- Production guidance was not increased despite Blackrod first oil being achieved earlier than expected, reflecting prudence.
- No dividend is planned in the short term, and share repurchases have not yet resumed, limiting immediate shareholder returns.
Welcome to IPC's 2026 second quarter results update presentation. I'm William Lundin, the President and CEO, and joined today by Christophe Nerguararian, our CFO, as well as Rebecca Gordon, our SVP, Corporate Planning and Investor Relations.
I'll begin with the highlights and provide an operational update, hand it to Christophe to walk through the financial section.
After the presentation, we can take questions which the audience can submit through conference call or via the Internet online.
Getting right into the second quarter highlights for IPC. Our average production for the second quarter was right in line with guidance at 42,200 BOE per day, and our full year 2026 production guidance is maintained at 44,000 to 47,000 BOEs per day.
Second quarter operating costs came in line with expectation at USD19.10 BOE, the OpEx per BOE forecast for the full year is maintained as per the original CMD guidance at USD8 to USD20 per BOE. Of course, the major announcement in the quarter
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