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Wednesday, March 11, 2020
InPlay Oil (IPOOF)
Earnings Preview
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 OTCQZ Exchange under the symbol IPOOF.
Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
We are lowering our 2020 ebitda and EPS estimates ahead of earnings to reflect a sharp drop in oil prices. We have lowered our WTI estimate to $45 from $52. With the decline, our 2020 ebitda estimate drops to $15 million from $35 million and our EPS estimate drops to $(0.25) from $(0.14). We would note that our oil price assumption is still above current oil prices. We are not adjusting our 2021 estimates at this point under the assumptions that oil prices will return to normal when the Coronavirus subsides and the global economy strengthens.
We are also reducing our capital investment and production assumptions. Management has indicated a plan to hold expenditures to a level near cash flow. As a result, we are lowering 2020 capital investments to $20 million from $35 million. This will cut the number of wells drilled down from 11-12 to 6-8. We are also lowering our 2020 production from 5,415 BOE/d to…
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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.