InPlay Oil's Q2 revenue C$91.6 mln, production up 125%

Overview

• InPlay Oil Q2 revenue C$91.6 mln, net loss C$3.2 mln

• Production rose 125% from Q1, exceeding expectations by 1,000 boe/d

• Delek Group acquires 32.7% stake, enhancing strategic alignment

Outlook

• InPlay expects 2025 average production at upper end of guidance range

• Capital spending expected in lower half of C$53-$60 mln budget

• Company plans to drill 5.0-5.5 net Cardium wells in Pembina

• InPlay has hedged over 70% of natural gas production for H2 2025

Result Drivers

• ACQUISITION IMPACT - Strategic acquisition of Cardium light oil assets enhanced scale, market capitalization, and long-term sustainability, boosting FAFF by 65% per share

• PRODUCTION OUTPERFORMANCE - Q2 production averaged 20,401 boe/d, exceeding expectations by 1,000 boe/d, driven by base production and new wells outperforming type curves by ~135% on average

• CAPITAL EFFICIENCY - Strong capital efficiencies expected to result in capital spending landing in the lower half of the C$53-60 mln budget, with a focus on free cash flow generation for debt reduction and shareholder returns

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

• Wall Street's median 12-month price target for InPlay Oil Corp is C$13.00, about 16.2% above its August 13 closing price of C$10.89

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release: ID:nCNWQWHKja