International Petroleum Corporation (IPC) reported an average net production of 45,900 barrels of oil equivalent per day in the third quarter of 2025, exceeding its initial guidance. Operating cash flow reached USD 66mn, while net income stood at USD 3.8mn. Quarterly revenue declined slightly to USD 172.3mn from USD 173.2mn a year earlier. Operating costs were USD 17.9 per barrel of oil equivalent, in line with estimates.
Acceleration of Blackrod development
The Blackrod project, located in Alberta, Canada, recorded substantial progress. IPC now expects initial steam injection before the end of 2025 and first oil in the third quarter of 2026, one quarter earlier than planned. The total investment to first oil remains set at USD 850mn, with USD 785mn already committed.
Blackrod is fully owned by IPC and holds 259mn barrels of oil equivalent in proven and probable reserves, along with 1.025bn barrels of unrisked contingent resources. Phase 1 targets a production plateau of 30,000 barrels per day, with production approval for up to 80,000 barrels per day.
Bond refinancing and financial position
During the quarter, IPC completed the refinancing of USD 450mn in unsecured bonds, extending maturity to October 2030 at a 7.5% interest rate. The company benefited from favourable conditions in the debt capital markets, despite rising benchmark rates. It also retained access to a CAD 250mn revolving credit facility, with CAD 37mn drawn as of September 30.
Net debt stood at USD 435mn at the end of September, up from USD 375mn in the previous quarter, mainly due to capital expenditures related to Blackrod and the share repurchase programme. Cash on hand amounted to USD 45mn at the end of the period.
Share buybacks and revised 2025 outlook
The company completed its 2024/2025 normal course issuer bid (NCIB), cancelling approximately 7.5 million common shares, representing 6.2% of shares outstanding since December 2024. IPC plans to renew the programme in December 2025, with a repurchase authorisation of up to 6.5 million additional shares, equal to 5.8% of the current outstanding shares.
For the full year 2025, IPC maintains its production guidance between 43,000 and 45,000 barrels of oil equivalent per day. Operating costs are expected to remain within the USD 18 to 19 per barrel range. Total capital and decommissioning expenditures are now estimated at USD 340mn, up from USD 320mn, due to the advancement of drilling activities at Blackrod. Free cash flow for the year is now projected between USD -170mn and -160mn.
