International Petroleum (TSE:IPCO) Announces Quarterly Earnings Results

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

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 Stock Down 4.1%

Shares of IPCO opened at C$30.32 on Wednesday. International Petroleum has a 1 year low of C$20.74 and a 1 year high of C$39.47. The company has a debt-to-equity ratio of 58.61, a current ratio of 0.79 and a quick ratio of 3.93. The stock has a 50 day simple moving average of C$32.39 and a two-hundred day simple moving average of C$33.19. The firm has a market cap of C$3.42 billion, a P/E ratio of 137.82 and a beta of 0.09.

Wall Street Analysts Forecast Growth

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

International Petroleum Company Profile

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.