Tag: InPlay Oil

InPlay Oil (IPOOF) – Results meet expectations, new drilling may be accelerating growth

Posted on by cpereira@noblefcm.com


Thursday, March 16, 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, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Results demonstrate strong growth, generally meeting expectations. Annual production volumes came in at the lower end of guidance but 58% above last year. Higher production levels in the area may be beginning to show signs of affecting takeaway capacity (see third party curtailment and widening basis discount differentials). Weak summer natural gas prices bounced back nicely in the fourth quarter.

Drilling is accelerating and creating higher producing wells. The company drilled 17.5 net wells in 2022 surpassing our 15 well estimate. Management reports that initial production rates for recent wells were “significantly above internal expectations”. InPlay has been shifting towards longer horizontal laterals and spending more on infrastructure. Production increases seem to justify the higher costs. Management believes the steps it is taking will offset recent curtailments and reiterated 2023 production guidance.


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*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. 

InPlay Oil (IPOOF) – Production slows, expenditures rise, and gas prices drop

Posted on by cpereira@noblefcm.com


Thursday, January 19, 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, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Production slows. Management projects 2022 production of 9,100-9,200 BOE/d versus 11/9/22 guidance of 9,150-9,400. Downtime at a third party gas facility led to a 435 BOE/d decrease in production. Cold weather also delayed getting wells on line. We have reduced our estimate to 9,162 BOE/d from 9,280. The company projects 2023 production of 9,500-10,000 BOE/d down from 9,900-10,400. We have lowered our forecast to 10,000 BOE/d from 10,400 to be within management’s guidance. We are comfortable being at the upper end of guidance given InPlay’s history of surpassing guidance (until the most recent quarter).

Expenditures rise. The company projects 2022 capital expenditures of C$76-78 million up from C$70-72 million due the acceleration of a drilling program. 2023 capital expenditure guidance increased to C$75-80 million (versus C$69-71 million) despite the drilling of 0.5 net wells less than previously assumed. Management attributes the higher capital expenditures mainly to two gas facility upgrades but also notes that it plans to drill longer wells in 2023 than in 2022.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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. 

InPlay Oil (IPOOF) – Results below elevated expectations but production growth justifies dividend initiation

Posted on by cpereira@noblefcm.com


Thursday, November 10, 2022

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, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Third-quarter results were below expectations due to lower-than-expected energy pricing. Production levels were in line with expectations and management guidance given on September 29. Realized oil and gas prices were well below U.S. reported oil and gas prices when adjusted to Canadian prices, reflecting a widening basis discount for western Canada production. We will incorporate a widening basis differential going forward.

InPlay is able to offset a weakening pricing environment with ever-improving production results. Management provided production guidance for 2023-25 for the first time. Guidance was well above production levels assumed in our models and reflects an acceleration of capital investments going forward. We believe increased investment is prudent at current payback rates of less than one year. We also believe management’s commitment to higher spending levels is a positive sign that it believes it has ample areas to drill at attractive returns.


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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. 

InPlay Oil (IPOOF) – Share Buyback Logical Next Use of Cash

Posted on by cpatches


Friday, October 14, 2022

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, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

InPlay received Toronto Stock Exchange approval for a Normal Course Issuer Bid. Under the NCIB, InPlay may purchase and cancel up to 10% of public float of the shares of IPO on the TSX subject to a daily limit of 25% of the average daily trading volume. At current prices, the buyback would be approximately C$20 million if maxed out. Management believes the buyback is a prudent step given the energy market volatility and its belief that, at times, its stock is undervalued. We would note that the shares of IPO (and IPOOF on the OTC exchange) have declined 40% off of June peak levels despite very positive recent operational developments (see 9/29/2022 report). NCIB approval follows 9/28/22 comments that Board of Directors had approved a share buyback program.

The company has the cash flow and balance sheet to do a share buyback. At current energy price levels, we expect the company to generate approximately C$150 million in Adjusted Fund Flow, far exceeding recently-raised capital expenditures of C$70-72 million (up from C$18 million in 2020). The company has been paying down debt and expects to reduce its net debt to EBITDA ratio to 0.1-0.2 times by the end of 2022 (implying that the current net debt level of C$52 million will be reduced to C$15-30 million). Net debt, which represented 50% of total capitalization as recently as 2020, now represents less than 10% of capitalization. We believe management has adequate cash flow to continue to grow capital expenditures, pay down debt, and still initiate a share repurchase program.


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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.