William Lundin, IPC's President and Chief Executive Officer, comments: "We are pleased to report another strong quarter for IPC. We produced an average of 45,900 barrels of oil equivalent per day (boepd) during the third quarter, which was above the guidance range for the period. Strong operational performance translated into robust financial results for the third quarter.
At the Blackrod asset, significant progress has been made during the quarter on the transformational Phase 1 development. We now forecast first steam by year end 2025 and first oil by Q3 2026, a quarter earlier than the original sanction case. This is a testament to the quality of multidisciplinary teamwork and overall project execution. With this positive progress and earlier than planned start-up, we have accelerated the drilling of the final well pad into the fourth quarter of 2025. The growth capital budget for the Blackrod Phase 1 development remains intact at MUSD 850 to first oil in 2026.
During the third quarter of 2025, we completed the 2024/2025 NCIB program, reducing the outstanding number of common shares by about 6.2% since the beginning of the annual program in December 2024. In addition, we announced in the third quarter that our MUSD 450 of bonds were successfully refinanced with the new bond maturity in October 2030."
Q3 2025 Business Highlights
Average net production of approximately 45,900 boepd for Q3 2025, above guidance (53% heavy crude oil, 14% light and medium crude oil and 33% natural gas).(1)
Continued progress of Blackrod Phase 1 development activity with Central Processing Facility (CPF) construction almost complete, progressive commissioning advancing, and first steam and first oil forecast a quarter earlier than originally guided.
At Onion Lake Thermal, Canada, the final two of four planned production infill wells and the final Pad L sustaining well pair were successfully brought online.
Announced the refinancing of IPC's MUSD 450 unsecured bonds, extending the maturity to October 2030.
1.1 million IPC common shares purchased and cancelled during Q3 2025 under the normal course issuer bid (NCIB), completing the full 2024/2025 NCIB of approximately 7.5 million IPC common shares.
IPC plans to seek Toronto Stock Exchange (TSX) approval for the renewal of the NCIB in December 2025.
Q3 2025 Financial Highlights
Operating costs per boe of USD 17.9 for Q3 2025, marginally below guidance.(3)
Operating cash flow (OCF) generation of MUSD 66 for Q3 2025, in line with guidance.(3)
Capital and decommissioning expenditures of MUSD 82 for Q3 2025, in line with guidance.
Free cash flow (FCF) generation for Q3 2025 amounted to MUSD -23 (MUSD 36 pre-Blackrod capital expenditures).(3)
Gross cash of MUSD 45 and net debt of MUSD 435 as at September 30, 2025.(3)
Net result of MUSD 4 for Q3 2025.
Reserves and Resources
Total 2P reserves as at December 31, 2024 of 493 MMboe, with a reserve life index (RLI) of 31 years.(1)(2)
Contingent resources (best estimate, unrisked) as at December 31, 2024 of 1,107 MMboe.(1)(2)
2P reserves net asset value (NAV) as at December 31, 2024 of MUSD 3,083 (10% discount rate).(1)(2)
2025 Annual Guidance
Full year 2025 average net production guidance range forecast maintained at 43,000 to 45,000 boepd.(1)
Full year 2025 operating costs guidance range forecast maintained at USD 18 to 19 per boe.(3)
Full year 2025 OCF guidance range tightened to between MUSD 245 and 255 (assuming Brent USD 55 to 65 per barrel for the remainder of 2025) from previous guidance of between MUSD 245 and 260 (which assumed Brent USD 60 to 75 per barrel for the second half of 2025).(3)(4)
Full year 2025 capital and decommissioning expenditures guidance revised from MUSD 320 to MUSD 340 (including MUSD 250 for the Blackrod asset), following the advancement of Blackrod Phase 1 drilling activity into Q4 2025.
Full year 2025 FCF revised guidance estimated at between MUSD -170 and -160 (assuming Brent USD 55 to 65 per barrel for the remainder of 2025) from previous guidance of between MUSD -135 and -120 (which assumed Brent USD 60 to 75 per barrel for the second half of 2025).(3)(4)
Three months endedSeptember 30
Nine months endedSeptember 30
USD Thousands
2025
2024
2025
2024
Revenue
172,297
173,200
509,681
598,659
Gross profit
32,066
39,505
99,878
167,397
Net result
3,802
22,875
33,883
101,804
Operating cash flow (3)
66,102
72,589
195,765
263,831
Free cash flow (3)
(23,083
)
(38,269
)
(124,507
)
(74,021
)
EBITDA (3)
62,106
68,313
184,571
259,304
Net cash/(debt) (3)
(434,822
)
(157,228
)
(434,822
)
(157,228
)
During the third quarter of 2025, the average Brent price was approximately USD 69 per barrel, as compared to approximately USD 68 per barrel for the second quarter of 2025. The Brent price remained relatively stable during the third quarter, with some downward pressure on prices post-quarter due to concerns over market oversupply and concerns around global trade between China and the US. Global observed petroleum inventories have increased, mainly driven by OPEC's unwinding of voluntary production cuts, long-dated non-OPEC supply growth projects coming on-stream, and sanctioned countries' production output being high relative to historical standard. Given the uncertainty and low-price strip outlook, it is unlikely near-term incremental upstream growth investment will be pursued by industry. Global oil demand is expected to be an all-time high in 2025 and is predicted to continue to rise in 2026.
Alongside the more constructive factors for stronger oil prices in the medium to longer term, the need to alleviate poverty in emerging markets coupled with meeting the infrastructure build-out requirements for technological advancements, namely with data centres and AI, places a major emphasis on the need for metals and high-density forms of energy. The precious and base metal supply needs will go hand-in-hand with a reliance on oil and its irreplaceable byproducts in order to develop and transport more mined material. While uncertainty exists with respect to forecasting oil prices, IPC has strongly positioned itself with forecast sustained higher production levels in the years ahead which should positively coincide with a higher pricing cycle at a time likely not too far into the future.
IPC's oil hedges in total represent around 50% of our aggregate forecast 2025 oil production at around USD 76 and USD 71 per barrel for Dated Brent and West Texas Intermediate (WTI), respectively, as well as a WTI collar between USD 65 and USD 75 per barrel, for the remainder of 2025.
The WTI to Western Canadian Select (WCS) price differential during the third quarter averaged less than USD 11 per barrel. The WTI to WCS differential continues to benefit from the TMX pipeline expansion, driving up competitive tension for Canadian oil and increased buying from Asia. The current and outlook of the WTI to WCS differential remains tight with excess egress capacity relative to the supply in the Western Canadian Sedimentary Basin (WCSB). There are currently no tariffs on Canadian crude oil exports to the United States, which remain covered by the US Mexico Canada trade agreement. IPC has hedged the WTI to WCS differential for approximately 50% of our forecast 2025 Canadian oil production at USD 14 per barrel for 2025. For 2026, IPC implemented WTI to WCS differential hedges in October 2025 for approximately 5,000 barrels per day at USD -12.50 per barrel.
The average Canadian gas benchmark price, AECO, was CAD 0.6 per Mcf for the third quarter of 2025 and IPC achieved an average realized price of CAD 0.8 per Mcf during the quarter. WCSB gas inventory levels remain elevated above the historical average. There is an expectation for storage levels to draw during the winter period and further supported by the ramp up of the LNG Canada project in 2026 which should drive higher natural gas prices. Approximately 50% of our net long gas exposure was hedged at CAD 2.4 per Mcf to end October 2025, with around 15% of net long gas exposure hedged for November and December at CAD 2.6 per Mcf. For 2026, IPC implemented hedges in the third quarter of 2025 for approximately 9,600 Mcf per day at CAD 2.80 per Mcf from April to October 2026.
Third Quarter 2025 Highlights and Full Year 2025 Guidance
During the third quarter of 2025, our portfolio delivered average net production of 45,900 boepd, ahead of guidance. The strong performance in the quarter was supported by the sustaining capital investment activities undertaken at the Onion Lake Thermal asset and at the Bertam field in Malaysia. We maintain the full year 2025 average net production guidance range of 43,000 to 45,000 boepd.(1)
Our operating costs per boe for the third quarter of 2025 was USD 17.9, marginally below guidance. Full year 2025 operating expenditure guidance of USD 18.0 to 19.0 per boe remains unchanged.(3)
Operating cash flow (OCF) generation for the third quarter of 2025 was MUSD 66. Full year 2025 OCF guidance is tightened to MUSD 245 to 255 (assuming Brent USD 55 to 65 per barrel for the remainder of 2025).(3)(4)
Capital and decommissioning expenditure for the third quarter of 2025 was MUSD 82, in line with guidance. Full year 2025 capital and decommissioning expenditure is revised to MUSD 340, from MUSD 320, mainly due to the acceleration of the drilling of the final well pad for the Blackrod Phase 1 project into the fourth quarter of 2025.
Free cash flow (FCF) generation was MUSD -23 (MUSD 36 pre-Blackrod capital expenditures) during the third quarter of 2025. Full year 2025 FCF guidance is revised to MUSD -170 to -160 (assuming Brent USD 55 to 65 per barrel for the remainder of 2025) after taking into account MUSD 340 of forecast full year 2025 capital expenditures (including MUSD 250 relating to the Blackrod asset) and costs incurred from the bond refinancing.(3)(4)
As at September 30, 2025, IPC's net debt position increased to MUSD 435, from a net debt position of MUSD 375 as at June 30, 2025, mainly driven by the funding of capital expenditures and the share repurchase program (NCIB). Gross cash as at September 30, 2025 amounted to MUSD 45.
In the third quarter of 2025, IPC announced that it had taken advantage of favourable debt capital market conditions to successfully refinance its MUSD 450 of unsecured bonds. The new bonds issued in October 2025 have a maturity in October 2030, with a coupon of 7.5% per annum. IPC believes that this is a great outcome since the US 5-year swap rates increased by almost 2% compared to IPC's inaugural bond issuance in the first quarter of 2022 while the coupon only increased by 0.25% to 7.5%. In addition, IPC continues to have access to a Canadian revolving credit facility of MCAD 250 (approximately MUSD 180), with MCAD 37 (approximately MUSD 27) drawn under that facility as at September 30, 2025. The access to liquidity supports IPC to follow through on its key strategic objectives of enhancing stakeholder value through organic growth, stakeholder returns, and pursuing value adding M&A.(3)
Blackrod
The Blackrod asset is 100% owned by IPC and contains 259 MMboe of 2P reserves and 1,025 MMboe of contingent resources (best estimate, unrisked) with regulatory approval to produce up to 80,000 bopd. In early 2023, IPC sanctioned the Phase 1 development targeting plateau production rates of 30,000 bopd with a growth capital expenditure guidance of MUSD 850. Since the Phase 1 project sanction to the end of the third quarter of 2025, capital expenditures of MUSD 785 have been incurred, or approximately 92% of the MUSD 850 growth capital guidance to first oil.(1)
All major work activities continued to advance at the Blackrod asset during the third quarter. Construction activities are nearing completion and progressive commissioning of the CPF is ahead of schedule. While full commissioning works remain to be completed, IPC is now confident that first steam at the project should occur before the end of 2025 with first oil to follow in the third quarter of 2026, a quarter earlier than originally guided. As a result of an earlier expected startup for the Phase 1 project, drilling of the final well pad is planned to be started in the fourth quarter of 2025 from early 2026.
IPC intends to fund the remaining Blackrod capital expenditure with ...
