Inplay Oil Corp - IPOOF stock
Company Profile[edit]
InPlay Oil Corp. (OTC: IPOOF, TSX: IPO) is an energy sector company focused on acquiring, developing, and producing petroleum and natural gas properties in Canada. It produces and distributes crude oil, natural gas, and natural gas liquids. The firm targets pools with large oil deposits, low declines, low recovery factors, and durable reserves. The company’s operations are centered around its concentrated light oil Cardium assets in West Central Alberta that focus on the Pembina and Willesden Green pools. InPlay holds further interests in the Belly River Formation, which provides an additional light oil development opportunity, and the Duvernay Formation, an emerging exploration site with significant future value. The Belly River light oil asset is situated east of Pembina Cardium Pool.InPlay’s common shares are publicly traded on both TSX and OTC markets. Its stock trade under the IPOOF ticker symbol and IPO on TSX. The firm is headquartered in Calgary, Canada.[1]
Business Operations[edit]
InPlay’s operations are pivoted on its three properties, focusing more on the Cardium Formation within the popular Pembina and Willesden Green pools. Its long-term strategic plan is to establish a sustainable oil and natural gas company. The company intends to generate significant value from exploration activities in the promising Belly River asset and the emerging Duverney project. Drilling operations on the firm’s assets provide high netbacks with quick payout enabling the company to advance per share organic growth for its shareholders. The focus on low-decline acquisitions provides a strong foundation for the company’s growth.[2]
Assets[edit]
Cardium[edit]
The asset accounted for approximately 70% of InPlay’s production in 2016. Despite extensive development over a long period, the pools within the Cardium asset still show the presence of large reserves of unrecovered oil. Horizontal drilling techniques have been applied on the wells, yielding better results than vertical drilling procedures previously employed over a long time. A surge in the company’s production and reserves via horizontal drilling wells is reinforced by vintage production boosted by long-term waterflood.[3]
Belly River[edit]
The Belly River property is located East of the Pembina Cardium Pool. A huge chunk of the asset requires low capital to maintain production courtesy of the waterflood, which provides a low-decline asset. This feature avails substantial free cash flow that the company can use to develop the underlying asset or other assets. The property’s development opportunities circle targeting oil in tight sands. Low recovery factors are incurred on the projects by drilling horizontal multi-frac wells.[4]
Duvernay[edit]
Duvernay is a light oil play that poses massive potential material value to the company. InPlay has explicit rights to the asset. Its depths are slightly greater than Cardium’s, resulting in manageable Well costs. The firm scheduled its first evaluation drills of the property in 2017.[5]
According to InPlays quarter 3 2022 operational results, the company's production averaged 9,495 boe/d (54% light crude oil & NGLs) in sales, 58% higher than its production in the same quarter of 2021. The company has also recorded a consecutive increase in production for the past six quarters.[6]
Critical News and developments[edit]
InPlay’s board of directors, in early December, declared a monthly cash dividend of $0.015 per common share to shareholders of record as of Dec. 15, 2022, the close of business date. The underlying dividends are posed to be settled on Dec. 30, 2022. The dividends are, however, expected to be labeled "eligible dividends" for taxation by the Canadian federal and provincial income tax agencies.[7]
Highlights of the company’s financial results for quarter 3, 2022 include
- The company generated quarterly adjusted funds flow (AFF) of $30.2 million ($0.35 per weighted average basic share(3), 94% higher than the o $15.6 million ($0.23 per weighted average basic share) generated in the third quarter of 2021
- Recorded quarterly operating income of $34.5 million, an increase of 68% from a similar quarter in 2021
- Generated a robust FAFF of $5.7 million that led to a 10% decrease in its net debt as of Jun. 30.
- Achieved net income of $15.4 million ($0.18 per basic share; $0.17 per diluted share)
- The firm also recorded a trailing twelve-month net debt-to-EBITDA ratio of less than 0.4x to Sept. 30, 2022.[8]
The company gave a detailed operations update in late September, with long-term forecasts and shareholders' return strategy. Production is estimated to increase by approximately 28% to 31% per share. The forecast is anticipated to place the firm in a top-tier position over its peers. Besides expanding drilling on extended wells, the company expects to increase industry activity levels in the first quarter of 2023. The company has plans to add two Belly River wells to its drilling program in 2023, which will lead to a significant increase in production and income.[9]
Management[10][edit]
Douglas J. Bartole, President and Chief Executive Officer
- Has held the positions since November 2012
- He was previously the president and CEO of Vero Energy Inc., a public oil and gas company.
- Mr. Bartole has also held senior positions in established companies, including True Energy, Husky Energy Inc., Renaissance Energy Ltd., and PanCanadian Petroleum Ltd.
- He is a member of APEGA, the Institute of Corporate Directors, and a governor of CAPP.
Darren Dittmer, Chief Financial Officer
- Has been the CFO since October 2013
- Before InPlay, Mr. Dittmer served as CFO of Barrick Energy Inc. between 2008 and 2013
- He boasts massive experience, having served as the Controller and CFO of Cadence Energy Inc., controller of Ketch Resources Ltd., Kereco Energy Ltd., and Upton Resources Inc.
Other executive team members include Gordon Reese, Vice President, Business Development; Kevin Yakiwchuk, Vice President, Exploration; and Thane Jensen, Vice President, Operations.
Company ESG[edit]
InPlay aims to establish a profitable, growing, and responsible energy firm. Accountability is part of the company's mission, paying close attention to its actions concerning health, safety, and environmental systems. The firm discharges its responsibilities around these scopes via its HSE Program, which includes:
- Policies, procedures, and standards deemed vital for executing its responsibilities
- The performance standards required of the company by shareholders,
- Institutional performance targets by the company
The company's management is charged with developing the firm's HSE policy and advancing the necessary resources needed to implement the programs. It is also required to generate periodic sustainability reports.[11]
References[edit]
- ↑ cnbc.com/quotes/IPOOF?tab=profile - CNBC News. Accessed on 12/18/2022.
- ↑ Operations Overview – InPlay Oil website.
- ↑ Cardium Asset – InPlay Oil website.
- ↑ Belly River Asset - InPlay Oil website.
- ↑ Duvernay Asset - InPlay Oil website.
- ↑ InPlay Oil Corp. Announces Third Quarter 2022 Financial and Operating Results Highlighted by Record Quarterly Production and the Implementation of an Inaugural Base Dividend, Page 3 – InPlay Oil website. Retrieved on 12/18/2022.
- ↑ InPlay Oil Corp. Confirms Monthly Dividend for December 2022 – Yahoo Finance.
- ↑ InPlay Oil Corp. Announces Third Quarter 2022 Financial and Operating Results Highlighted by Record Quarterly Production and the Implementation of an Inaugural Base Dividend, Page 2 – InPlay Oil press releases.
- ↑ InPlay Oil Corp. Announces Operations Update with Record Corporate Production, a Long-Term Forecast and Return to Shareholder Strategy – Yahoo Finance News.
- ↑ MANAGEMENT- InPlay Oil website. Retrieved on 12/19/2022.
- ↑ INPLAY OIL CORP. HEALTH, SAFETY and ENVIRONMENT - HSE POLICY – InPlay website. Accessed on 12/19/2022.
OTC Symbol: IPOOF | OTC Tier: OTCQX International
