InPlay Oil Corp press release

InPlay Oil Corp. Announces Third Quarter 2026 Financial and Operating Results and Preliminary 2027 Guidance Highlighted by 15% Per Share Growth in Oil Production

2026-11-05

TSX - Toronto Stock Exchange · Oil · Natural Gas · Natural Gas Liquids · Canada · Production & Operations

Canada NewsWire

CALGARY, AB, Nov. 5, 2026/CNW/ -- InPlay Oil Corp. (TSX: IPO) (TASE: IPO) (OTCQX: IPOOF) ("InPlay" or the "Company") is pleased to announce its financial and operating results for the three and nine months ended September 30, 2026, together with preliminary 2027 production and capital guidance. InPlay's unaudited interim financial statements and notes, and Management's Discussion and Analysis ("MD&A") for the three and nine months ended September 30, 2026 will be available at "www.sedarplus.ca" and the Company's website at "www.inplayoil.com". An updated corporate presentation will be available on our website in due course.

Message to Shareholders:

During the third quarter, InPlay continued its track record of completing highly accretive strategic transactions through the acquisition of a private oil and gas producer. The acquisition was 28% accretive to both Adjusted Funds Flow ("AFF")(1)and Free Adjusted Funds Flow ("FAFF")(2)on a per share basis and enhanced InPlay's capacity to generate FAFF going forward. It also expanded InPlay's producing asset base and drilling inventory adjacent to existing operations, strengthening our platform for continued development. Third-quarter results reflect just over five weeks of results from this complementary acquisition in our core area.

The third quarter marked InPlay's most active capital program of the year, drilling seven (6.7 net) horizontal wells along with the initiation of drilling operations on an additional one (1.0 net) well prior to quarter-end. The Company also participated in two (0.2 net) non-operated Pembina wells that were drilled in September and brought on production in early November.

Two Cardium wells drilled in the quarter were brought on production in mid-September and have performed ahead of internal expectations. These wells achieved average initial production ("IP") rates of 231 boe/d (97% light oil and NGLs) per well over their first 30 days of production and they are currently producing at a rate of 344 boe/d (88% light oil and NGLs) per well, significantly ahead of internal oil type curves.

Three additional Cardium wells were brought on production in late-October and are currently in the clean-up phase. InPlay also commenced development drilling on its newly acquired Belly River assets. Drilling began on a two-well pad in late September with the first well being fully drilled by quarter-end. Both wells have been brought on production in the past few days.

Drilling also began on a separate two-well Cardium pad in late September, with the first well being fully drilled by quarter-end. Both wells have now been drilled, are currently being completed and are expected to come on production mid-November. Wet weather has delayed the availability of frac crews by two to three weeks from originally planned.

The Company's 2026 capital program is substantially complete, with expenditures to date below budget. Strong capital efficiencies supported the previously announced expansion of the drilling program where the number of planned wells increased by 30% with only a 15% increase in capital (from mid-point).

The third quarter included significant capital investment with only two (2.0 net) wells brought on production during the period. Seven (4.9 net) wells drilled in the third quarter, along with an additional two (2.0 net) wells drilled through quarter end, are coming on production in a short, four-week window through mid-November. This substantial influx of new production, combined with the strong commodity price outlook, are expected to drive record fourth quarter AFF and FAFF, providing strong operational momentum heading into 2027.

Reflecting the strong 2026 production performance to date, and notwithstanding weather related delays, InPlay reiterates its 2026 average annual production guidance of 18,900 – 19,400 boe/d(3)(61% – 63% light oil and NGLs). Based on current strip pricing, the Company has increased forecast 2026 AFF by 10% to $178 – $184 million. Forecast FAFF has increased by 19% to $96 – $104 million, representing a FAFF yield of 19% – 21%. Year-end net debt to annualized Q4 2026 EBITDA is forecast at 1.0x – 1.1x.

Preliminary 2027 Guidance

InPlay is excited to provide preliminary 2027 production and capital guidance. With 2027 WTI strip pricing of approximately US$80/bbl and AECO pricing below $2.00/GJ, the Company's capital program will target increased organic growth through focused oil-weighted drilling, including expanded Belly River development on newly acquired lands. This focus prioritizes higher-value oil production over total boe volumes, with over 85% of our revenue coming from oil.

Key highlights of the preliminary 2027 capital program include:

Capital program of $95 – $105 million. Production of 20,100 – 21,000 boe/d(3)(64% – 65% light oil and NGLs). Oil production per share growth of 15%(5)from 2026. Total production per share growth of 8%(5)from 2026.

AFF of $206 – $218 million, a 17%(5)increase from 2026. FAFF of $101 – $123 million, a 12%(5)increase from 2026. FAFF yield of 22%(5), among the highest of Canadian-listed E&P companies. Capital expenditures represent 47%(5)of AFF. Capital expenditures plus dividends represent 61%(5) of AFF.

InPlay's forecast FAFF of $101 – $123 million is expected to support the Company's dividend, significant share repurchases and material debt reduction. Share repurchases represent a compelling opportunity to enhance shareholder value as the Company believes the prevailing market price of its Common Shares does not reflect the underlying intrinsic value. Strong FAFF generation and debt reduction are also expected to increase financial capacity for further accretive acquisitions, building on InPlay's track record of delivering per share growth.

The table below outlines InPlay's 2027 preliminary guidance:

| | Preliminary 2027 Guidance(6) | | WTI (US$/bbl) | $80.00 | | FX (US$/CAD$) | 0.72 | | AECO (CAD$/GJ) | $1.90 | | Production (boe/d) (3) | 20,100 – 21,000 | | Oil production (bbl/d) | 10,725 – 11,110 | | Capital ($ millions) | $95 – $105 | | AFF ($ millions)(1) | $206 – $218 | | FAFF ($ millions)(2) | $101 – $123 |

InPlay retains flexibility to adjust activity as commodity prices, services availability and costs evolve. The Company may advance a portion of its 2027 capital program into December 2026 to retain its drilling rig and crew following their exceptionally strong performance in 2026. This would also allow the Company to secure services ahead of an anticipated period of high industry activity in Western Canada during the first quarter of 2027.

InPlay expects to announce its finalized 2027 capital budget and guidance in January 2027, following Board approval. Preliminary guidance remains subject to refinement as the Company completes its planning process and assesses prevailing market conditions.

Third Quarter 2026 Highlights:

Achieved average quarterly production of 19,254 boe/d(1)(62% light crude oil and NGLs), a 3% increase from Q2 2026. Improved light oil production to 9,565 bbl/d, a 5% increase from Q3 2025 driving strong per boe netbacks and returns. Realized operating income(2)of $61.7 million, a 78% increase from Q3 2025, and an operating income profit margin(2)of 52%, a 19% improvement from Q3 2025. Operating netbacks(2)improved to $34.85/boe, an increase of 75% compared to Q3 2025. Delivered record AFF of $51.4 million ($1.86 per basic share(4)), a 92% increase from Q3 2025. Generated FAFF of $29.0 million. Returned $7.5 million ($0.27/share) to shareholders through monthly dividends (6.0% yield relative to current share price). Cumulative dividends declared since November 2022 total approximately $90 million ($4.41/share), including dividends declared to date in Q4 2026. Repurchased and cancelled 0.7% of outstanding common shares during the quarter. Since the initiation of purchases under our Normal Course Issuer Bid ("NCIB") in June 2026, 2.1% of the Company's outstanding common shares have been repurchased and cancelled to date. Successfully closed the accretive acquisition of a private light oil weighted producer on August 21, 2026 for $54.4 million, adding 1,400 boe/d (85% light oil and NGLs) of production at closing and 50 net drilling locations with short payout periods in our core area. On July 24, 2026, the Company renewed its Senior Credit Facility, which now consists of committed amounts of a $140 million revolving line of credit and a $50 million operating line of credit. In addition, the borrowing base was expanded by $60 million, for a total borrowing base of $250 million.

Third Quarter 2026 Financial & Operations Overview:

InPlay completed an active capital program during the third quarter, investing $22.3 million to drill and complete two (2.0 net) Cardium wells, drill four (3.7 net) Cardium wells and one (1.0 net) Belly River well. Drilling operations also began on an additional one (1.0 net) Belly River well which finished in the fourth quarter. Operational execution remained strong, with drilling and completion operations executed on budget despite periods of wet weather during the quarter.

Quarterly production averaged 19,254 boe/d(1)(62% light crude oil and NGLs), representing a 3% increase from the second quarter of 2026. Crude oil production remained strong averaging 9,565 bbl/d, a 5% increase from the third quarter of 2025.

Improved oil prices and strong light oil production resulted in InPlay delivering AFF of $51.4 million ($1.86/share), a second consecutive quarterly record and a 92% increase from the third quarter of 2025. InPlay also returned $7.5 million ($0.27/share) to shareholders through dividends. Since November 2022, InPlay has declared $90 million ($4.41/share) in dividends, including dividends declared to date in the fourth quarter. In addition, the Company spent $3.3 million repurchasing common shares during the quarter, representing approximately 0.7% of outstanding common shares. Since the initiation of purchases under the NCIB in June 2026, InPlay has repurchased approximately 2.1% of outstanding common shares.

Financial and Operating Results:

| | Three months ended September 30 | Nine months ended September 30 | | | | | 2026 | 2025 | 2026 | 2025 | | Financial(CDN - $millions) | | | | | | Oil and natural gas sales | 118.8 | 79.3 | 331.4 | 209.9 | | Adjusted funds flow(1) | 51.4 | 26.8 | 126.3 | 83.7 | | Per share – basic(4) | 1.86 | 0.96 | 4.55 | 3.59 | | Per share – diluted(4) | 1.76 | 0.96 | 4.30 | 3.59 | | Per boe(3) | 29.01 | 15.36 | 24.66 | 18.93 | | Comprehensive income (loss) | (2.1) | (4.8) | (13.9) | (10.9) | | Per share – basic | (0.08) | (0.17) | (0.50) | (0.47) | | Per share – diluted | (0.08) | (0.17) | (0.50) | (0.47) | | Dividends | 7.5 | 7.5 | 22.6 | 19.5 | | Per share – declared | 0.27 | 0.27 | 0.81 | 0.84 | | Capital expenditures – PP&E and E&E | 22.3 | 22.3 | 61.5 | 40.8 | | Property acquisitions | 54.3 | (1.7) | 54.7 | 291.9 | | Net debt(1) | (257.5) | (228.4) | (257.5) | (228.4) | | Shares outstanding | 27.5 | 27.8 | 27.5 | 27.8 | | Basic weighted-average shares | 27.6 | 27.8 | 27.8 | 23.3 | | Diluted weighted-average shares | 29.2 | 27.8 | 29.3 | 23.3 | | Operational | | | | | | Daily production volumes | | | | | | Light and medium crude oil (bbls/d) | 9,565 | 9,122 | 9,256 | 7,647 | | Natural gas liquids (boe/d) | 2,347 | 2,334 | 2,289 | 2,105 | | Conventional natural gas (Mcf/d) | 44,055 | 45,081 | 43,260 | 38,596 | | Total (boe/d) | 19,254 | 18,970 | 18,755 | 16,185 | | Realized prices(4) | | | | | | Light and medium crude oil & NGLs ($/bbls) | 101.92 | 72.35 | 97.68 | 72.88 | | Conventional natural gas ($/Mcf) | 1.76 | 0.75 | 1.99 | 1.51 | | Total ($/boe) | 67.07 | 45.47 | 64.72 | 47.50 | | Operating netbacks ($/boe)(2) | | | | | | Oil and natural gas sales | 67.07 | 45.47 | 64.72 | 47.50 | | Royalties | (12.18) | (7.13) | (10.55) | (6.56) | | Transportation expense | (1.07) | (0.87) | (1.02) | (0.85) | | Operating costs | (18.97) | (17.61) | (18.83) | (16.06) | | Operating netback(2) | 34.85 | 19.86 | 34.31 | 24.03 | | Realized gain (loss) on derivative contracts | (0.31) | 1.07 | (3.95) | 0.35 | | Operating netback (including realized derivative contracts)(2) | 34.54 | 20.93 | 30.36 | 24.38 |

On behalf of our employees, management team and Board of Directors, we thank our shareholders for their continued support. With an expanded portfolio of high-quality light oil assets and a deep inventory of attractive drilling opportunities, InPlay is well positioned to build on its operational momentum through the remainder of 2026 and into 2027. We remain focused on disciplined capital allocation, sustainable acquisition and organic growth and debt reduction while continuing to return capital to shareholders and create long-term value.

For further information please contact:

Doug Bartole Kevin Leonard President and Chief Executive Officer Vice President Corporate & Business Development InPlay Oil Corp. InPlay Oil Corp. Telephone: (587) 955-0632 Telephone: (587) 955-0635

| Notes: | | | 1. | Capital management measure. See "Non-GAAP and Other Financial Measures" contained within this press release. | | 2. | Non-GAAP financial measure or ratio that does not have a standardized meaning under International Financial Reporting Standards (IFRS) and GAAP and therefore may not be comparable with the calculations of similar measures for other companies. Please refer to "Non-GAAP and Other Financial Measures" contained within this press release and in our most recently filed MD&A. | | 3. | See "Production Breakdown by Product Type" at the end of this press release. | | 4. | Supplementary financial measure. See "Non-GAAP and Other Financial Measures" contained within this press release. | | 5. | Based on mid-point of 2026 guidance or 2027 preliminary guidance where applicable. | | 6. | InPlay's preliminary 2027 guidance reflects management's current expectations and is based on a proposed capital program that remains subject to Board approval. The final capital program and associated guidance may differ materially. |

Reader Advisories

Hedging Summary

Commodity Hedges

| | Q4/26 | Q1/27 | Q2/27 | Q3/27 | Q4/27 | 2028 | | | | | | | | | | Natural Gas AECO Swap(1)(mcf/d) | 8,560 | 4,265 | 23,695 | 23,695 | 7,948 | - | | Hedged price ($AECO/mcf) | $3.05 | $3.65 | $1.80 | $1.80 | $1.80 | - | | | | | | | | | | Natural Gas AECO Costless Collar(2)(mcf/d) | 16,400 | 18,950 | - | - | 3,140 | 4,740(4) | | Hedged price ($AECO/mcf) | $2.85 - $4.55 | $3.00 - $4.85 | - | - | $2.15 - $3.70 | $2.15 - $3.70 | | | | | | | | | | Crude Oil WTI Swap(1)(bbl/d) | 2,000 | 2,000 | - | - | - | - | | Hedged price ($USD WTI/bbl) | $61.05 | $61.05 | - | - | - | - | | Crude Oil WTI Three-way Collar(3)(bbl/d) | 1,750 | 2,500 | 4,000 | 3,000 | 3,000 | 2,000 | | Low sold put price ($USD WTI/bbl) | $50.00 | $58.00 | $55.40 | $58.70 | $58.70 | $50.00 | | Mid bought put price ($USD WTI/bbl) | $57.50 | $68.00 | $64.75 | $68.70 | $68.70 | $60.00 | | High sold call price ($USD WTI/bbl) | $72.15 | $91.20 | $86.00 | $85.35 | $85.35 | $70.65 | | | | | | | | | | Electricity AESO Swap (kW) | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | | Hedged price ($kWh) | $0.06217 | $0.06217 | $0.06217 | $0.06217 | $0.06217 | $0.06217 |

| (1) | Fixed price swaps provide InPlay with a guaranteed price in lieu of realization of floating index prices. | | (2) | Costless collars indicate InPlay concurrently bought put and sold call options at strike prices such that the costs and premiums received offset each other, thereby completing the derivative contracts on a costless basis. | | (3) | The WTI three-way collars are a combination high priced sold call, low priced sold put and a mid-priced bought put. The high sold call price is the maximum price the Company will receive for the contract volumes. The mid bought put price is the minimum price InPlay will receive, unless the market price falls below the low sold put strike price, in which case InPlay receives market price plus the difference between the mid bought put price minus the low sold put price. | | (4) | These hedged volumes are for the period from January 1, 2028 – March 31, 2028. | | (5) | These hedged volumes are for the period from January 1, 2028 – July 31, 2028. |

Foreign Exchange Hedges

| | 2026 | 2027 | 2028 | 2029 | | | | | | | | | | | | | | | | USD/CAD Variable Rate Collar(6)(US $'000s) | 32,250 | 96,000 | - | - | | | | | | Put strike rate (USD/CAD) | $1.347 | $1.342 | - | - | | | | | | Restrike rate (USD/CAD) | $1.376 | $1.372 | - | - | | | | | | Call Strike rate (USD/CAD) | $1.403 | $1.402 | - | - | | | | | | NIS/CAD FX Forward Contract (NIS ₪'000s) | 17,179 | 67,265 | 65,298 | 496,116 | | | | | | Hedged rate (NIS/CAD) | 2.2235 | 2.2235 | 2.2235 | 2.2235 | | | | | | | | | | | | | | |

| (6) | The Variable Rate Collar (USD/CAD) is a combination of a Put Strike Rate, Call Strike Rate and a Mid-Restrike Rate. Average Price (AP) is average interday spot rate for CAD per USD on averaging dates in a month. If AP is greater than or equal to the Call Strike Rate, InPlay will pay said amount X (AP – Restrike Rate). If AP is greater than or equal to Put Strike Rate but less than Call Strike Rate no settlement occurs. If AP is less than Put Strike Rate InPlay will be paid said amount X (Put Strike Rate – AP). |

Currency

USD refers to United States Dollars, NIS or ILS refers to New Israeli Shekels and CAD refers to Canadian Dollars.

Non-GAAP and Other Financial Measures

Throughout this document and other materials disclosed by the Company, InPlay uses certain measures to analyze financial performance, financial position and cash flow. These non-GAAP and other financial measures do not have any standardized meaning prescribed under GAAP and therefore may not be comparable to similar measures presented by other entities. The non-GAAP and other financial measures should not be considered alternatives to, or more meaningful than, financial measures that are determined in accordance with GAAP as indicators of the Company performance. Management believes that the presentation of these non-GAAP and other financial measures provides useful information to shareholders and investors in understanding and evaluating the Company's ongoing operating performance, and the measures provide increased transparency and the ability to better analyze InPlay's business performance against prior periods on a comparable basis.

Non-GAAP Financial Measures and Ratios

Included in this document are references to the terms "free adjusted funds flow", "FAFF yield", "operating income", "operating netback per boe", "operating income profit margin" and "Net Debt to EBITDA". Management believes these measures and ratios are helpful supplementary measures of financial and operating performance and provide users with similar, but potentially not comparable, information that is commonly used by other oil and natural gas companies. These terms do not have any standardized meaning prescribed by GAAP and should not be considered an alternative to, or more meaningful than "profit before taxes", "profit and comprehensive income", "adjusted funds flow", "capital expenditures", "net debt" or assets and liabilities as determined in accordance with GAAP as a measure of the Company's performance and financial position.

Free Adjusted Funds Flow / FAFF Yield

Management considers FAFF and FAFF Yield as important measures to identify the Company's ability to improve its financial condition through debt repayment and its ability to provide returns to shareholders. FAFF should not be considered as an alternative to or more meaningful than AFF as determined in accordance with GAAP as an indicator of the Company's performance. FAFF is calculated by the Company as AFF less exploration and development capital expenditures and property dispositions (acquisitions) and is a measure of the cashflow remaining after capital expenditures before corporate acquisitions that can be used for additional capital activity, corporate acquisitions, repayment of debt or decommissioning expenditures or potentially return of capital to shareholders. Free adjusted funds flow yield is calculated by the Company as free adjusted funds flow divided by the market capitalization of the Company. Refer to the "Forward Looking Information and Statements" section for a calculation of forecast FAFF and FAFF yield.