Thursday, February 06, 2025
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.
Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Hans Baldau, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Updated 2024 guidance. Inplay Oil modestly lowered its 2024 production guidance to 8,700 to 8,750 boe/d from 8,700 to 9,000. Additionally, the company lowered its expectations for crude oil prices and slightly raised expense guidance. Due to these changes, the adjusted funds flow (AFF) is expected to range from C$68 million to C$70 million compared to prior guidance of C$70 million to C$73 million. Capital expenditures for 2024 are expected to come in at around C$63 million compared to original expectations of C$64-67 million. The savings are mainly due to cost efficiencies from the Pembina Cardium Unit #7 (PCU7) drilling program.
Outlook for 2025. Management has planned a capital-efficient program in 2025. The company expects to increase production by 2%, in the range of 8,650 to 9,150 boe/d, compared to 2024, while spending around C$20 million less. The total capital budget for 2025 is C$41 million to C$44 million and will primarily be directed toward the Pembina Cardium Unit #7 property. Management expects adjusted funds flow (AFF) to benefit from lower capital expenditures and anticipates 2025 AFF to be between C$69 million and C$75 million.
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