Monday, May 15, 2023
InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQX Exchange under the symbol IPOOF.
Michael Heim, Senior Vice President, Equity Research Analyst, Energy & Transportation, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Production levels hit by curtailments. InPlay reported average quarterly production of 9,020 boe/d in the 2023-1Q vs. 8,221 boe/d for 2022-1Q, and below last quarter’s production and our expectations. Management indicated that gas curtailments reduced production by 625 boe/d. Increased back pressure has become an issue in recent quarters as production is rising faster than the infrastructure can handle, even as new infrastructure investments are being made.
Lower production caused bottom-line numbers to be below expectations. Although InPlay did a good job holding the line on costs, it was unable to offset the reduction in sales. As a result, management lowered cash flow guidance for the year. Cash flow should improve in upcoming quarters due to accelerated drilling activity including bringing two wells online with impressive flow rates.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.