International Petroleum maps Blackrod‑led growth path

International Petroleum Corporation (IPC) says 2026 will be an “inflection point year” as its Blackrod Phase 1 oil sands development in Canada moves from build‑out toward production. The company achieved first steam injection at Blackrod in December 2025 and continues to forecast first oil in the third quarter of 2026, a quarter earlier than originally guided.

By the end of 2025, IPC had spent USD 820 million of the planned USD 850 million growth capital budget to first oil on Blackrod Phase 1. Construction at the central processing facility is nearing completion, commissioning is under way and drilling and completions “continue to track favourably,” according to the company.

Phase 1 targets 311 million barrels of oil equivalent (MMboe) of proved plus probable (2P) reserves and is planned to reach a 30,000 barrels per day plateau by the end of 2027. IPC added that cumulative remaining capital to first oil is about USD 30 million, with a further USD 60 million in 2026 earmarked for accelerated sustaining capital, capitalised pre‑first‑oil operating costs and resource maturation work.

IPC reported average net production of 44,900 barrels of oil equivalent per day (boepd) in 2025, at the high end of its 43,000–45,000 boepd guidance. Fourth‑quarter production averaged 45,600 boepd. Operating costs were USD 17.8 per boe for the year, below the guided USD 18.0–19.0 range.

Operating cash flow reached USD 259 million in 2025, above the most recent guidance of USD 245–255 million, despite Brent crude averaging USD 69 per barrel versus USD 81 in 2024. Capital and decommissioning expenditures totaled USD 344 million, in line with guidance and heavily skewed to Blackrod spending.

Free cash flow for 2025 was negative USD 153 million, better than the guided negative USD 160–170 million. IPC said free cash flow before 2025 Blackrod capital of USD 256 million was USD 103 million, highlighting the impact of the final heavy growth year on reported free cash flow.

IPC ended 2025 with 521 MMboe of 2P reserves, giving a reserve life index of 31 years based on its 2026 mid‑point production guidance of 45.5 thousand boepd. The company said it replaced 277% of 2025 production through net additions to 2P reserves.

Proved developed producing reserves rose 28% year on year to 125 MMboe, mainly driven by Blackrod Phase 1. Contingent resources (best estimate, unrisked) totaled 1,224 MMboe at year‑end, of which 1,142 MMboe relate to future potential phases of Blackrod.

The net present value of 2P reserves as at December 31, 2025 was about USD 2.7 billion, with a net asset value of roughly USD 2.2 billion after deducting net debt of USD 484 million.

For 2026, IPC has set production guidance at 44,000–47,000 boepd, with operating costs forecast at USD 18–20 per boe. Capital and decommissioning expenditures are budgeted at USD 122 million, including USD 90 million for Blackrod.

At assumed Brent prices of USD 55–75 per barrel, operating cash flow in 2026 is estimated at USD 100–250 million, with free cash flow ranging from negative USD 70 million to positive USD 85 million. Over 2026–2030, IPC forecasts cumulative free cash flow of USD 1.0–2.0 billion at Brent USD 65–85 per barrel, rising to USD 1.6–3.6 billion if Brent averages USD 95.

The company projects average net production of about 62 thousand boepd over 2026–2030 and expects output to exceed 65 thousand boepd by 2028 as Blackrod ramps up. It plans average capital expenditures of roughly USD 5 per boe and operating costs of USD 18–20 per boe over that period.

IPC ended 2025 with net debt of USD 484 million after refinancing USD 450 million of unsecured bonds to extend maturity to October 2030 and amending a CAD 250 million revolving credit facility to May 2027. Approximately CAD 200 million of the facility was undrawn at year‑end.

The company has hedged 9,000 barrels per day of 2026 oil production, including 1,500 barrels per day at around USD 67 per barrel Dated Brent and 7,500 barrels per day at roughly USD 61.5 per barrel West Texas Intermediate. It also hedged 5,000 barrels per day of WTI–Western Canadian Select differential at USD minus 12.50 per barrel and 15,000 GJ per day of Canadian natural gas at CAD 2.73 per GJ from April to October 2026.

From December 2024 to early December 2025, IPC repurchased and cancelled about 7.7 million common shares under its normal course issuer bid at an average price of SEK 144 (CAD 20) per share. Since inception, the company has returned over USD 600 million via buybacks, cancelling more than 77 million shares, and has renewed its buyback authorization through December 2026.