International Petroleum (TSE:IPCO) Issues Earnings Results

International Petroleum (TSE:IPCO) posted its quarterly earnings data on Tuesday. The company reported C$0.13 EPS for the quarter, FiscalAI reports. International Petroleum had a net margin of 3.51% and a return on equity of 2.73%. The firm had revenue of C$263.89 million during the quarter.

Here are the key takeaways from International Petroleum’s conference call:

• Blackrod Phase I achieved first oil ahead of schedule and on budget, with five well pairs online and plateau production targeted at 30,000 bbl/d. Management expects production and cash flow to ramp materially in the fourth quarter and into 2027.
• Second-quarter production of 42,200 BOE/d, operating costs of $19.10/BOE and 2026 capital spending guidance of $163 million were all in line with expectations. Full-year production guidance remains 44,000–47,000 BOE/d.
• Operating cash flow reached $67 million in Q2 and free cash flow turned positive at $4 million, the first positive quarter since 2023. Management forecasts 2026 operating cash flow of $230–$330 million and free cash flow of $10–$110 million at $70–$90 Brent.
• IPC’s benchmark oil hedges expired at the end of June, leaving production fully exposed to WTI and Brent prices; remaining hedges mainly cover Canadian differentials, transportation and natural gas. This increases upside if prices remain strong but also raises commodity-price volatility.
• Net debt was broadly stable at approximately $509 million, with more than $150 million of undrawn liquidity. Management remains opportunistic on share buybacks and M&A, but indicated that a dividend is unlikely in the short term and does not expect to materially increase 2026 capital spending.

International Petroleum Trading Down 3.7%

Shares of IPCO traded down C$1.17 during midday trading on Tuesday, hitting C$30.43. 40,024 shares of the stock were exchanged, compared to its average volume of 173,657. International Petroleum has a 52-week low of C$20.74 and a 52-week high of C$39.47. The company has a debt-to-equity ratio of 58.61, a quick ratio of 3.93 and a current ratio of 0.79. The stock has a fifty day simple moving average of C$32.52 and a 200 day simple moving average of C$33.16. The firm has a market cap of C$3.43 billion, a P/E ratio of 138.32 and a beta of 0.12.

Analyst Upgrades and Downgrades

A number of research analysts have commented on the stock. Scotiabank set a C$38.00 target price on shares of International Petroleum and gave the company a “sector outperform” rating in a research report on Friday, July 17th. BMO Capital Markets upgraded shares of International Petroleum from a “market perform” rating to an “outperform” rating and set a C$43.00 price target for the company in a research report on Tuesday, April 7th. Finally, National Bank Financial set a C$45.00 price target on shares of International Petroleum and gave the company a “sector perform” rating in a research report on Monday, May 4th. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of C$38.25.

About International Petroleum

International Petroleum Corp is an international oil and gas exploration and production company. It is engaged in the exploration, development, and production of oil and gas. Geographically, the company holds a portfolio of oil and gas production assets and development projects in Canada, Malaysia and France. It is based in Canada and derives revenue from the sales of gas, crude oil, and natural gas liquids, of which key revenue is derived from the sales of crude oil.