InPlay Oil Corp press release
InPlay Oil Corp. Announces Third Quarter 2025 Financial and Operating Results, Increased 2025 Production Guidance and Reduced Capital Spending
TSX - Toronto Stock Exchange · Oil · Natural Gas · Natural Gas Liquids · Canada
Canada NewsWire
CALGARY, AB, Nov. 12, 2025/CNW/ - InPlay Oil Corp. (TSX: IPO) (OTCQX: IPOOF) ("InPlay" or the "Company") announces its financial and operating results for the three and nine months ended September 30, 2025. 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, 2025will 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.
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During the third quarter, InPlay continued to build on the momentum generated by its April 7, 2025acquisition of Cardium-focused light oil assets in the Pembina area of Alberta(the "Acquisition"). Due to the outperformance of base production and material outperformance of our 2025 drilling program, current production rates are ahead of forecast at 19,750 boe/d (61% light oil and NGLs), with two (2.0 net) operated ERH wells scheduled to come onstream in the next week. As a result, InPlay is increasing its 2025 average annual production guidance to 16,900 boe/d – 17,100 boe/d(1) (60% - 62% light oil and NGLs), up 4% from the mid-point of the previous guidance range of 16,000 boe/d – 16,800 boe/d(1) (60% - 62% light oil and NGLs).
The third quarter marked InPlay's most active capital program of the year, as the Company advanced the development of its expanded inventory of high-quality locations. InPlay drilled six (5.2 net) wells in Pembina during the third quarter. Three (3.0 net) of these wells were completed through quarter end and brought on production in mid-October and two (2.0 net) wells are currently being completed and are expected to be brought on production in mid-November. The Company also participated in one (0.2 net) non-operated well, which was drilled, completed, and brought on production in September.
The efficient application of InPlay's drilling and completion techniques on the acquired assets has led to strong well performance and significant capital cost reductions of approximately 20% compared to recent nearby locations of other operators, with InPlay's wells having 50% more frac stages. The three (3.0 net) wells brought on production in October have delivered strong results, with initial production ("IP") rates of 515 boe/d (85% light oil and NGLs) per well over the first 29 days of production.
In addition, the seven (7.0 net) Extended Reach Horizontal ("ERH") wells brought onstream in February/March of 2025 continue to perform at or above internal expectations, highlighted by two (2.0 net) wells which paid out in approximately 75 days and have averaged 700 boe/d to date, approximately 260% above type curve. Cumulatively, all wells drilled in the first quarter of 2025 have produced at an average rate of 410 boe/d over their first 8 – 9 months, which is approximately 73% ahead of type curves.
InPlay's 2025 drilling program is now complete, with 8.2 net wells drilled this year, with an additional 4.0 net wells drilled on the acquired assets in the first quarter. InPlay's disciplined approach in this focused area has resulted in strong capital efficiencies, with forecasted 2025 exploration and development expenditures expected to be approximately $53 million, at the lower end of our previous guidance range of $53- $60 million. This includes the acceleration of our 2026 capital program by building three leases and initiating drilling operations on our first 2026 planned well before year-end. With the majority of capital spending completed by the end of October, and new wells coming online from the third and fourth quarter, InPlay expects to deliver strong free adjusted funds flow ("FAFF")(3)in the fourth quarter.
The oil and gas industry continues to experience volatile commodity prices. Oil and related product inventories in the United Statesremain near five year lows which provides cushion as there are many varying near term opinions around supply and demand. The majority of analysts agree this is setting the stage for a significant price recovery in 2026. Average Western Canadian and United Statesnatural gas inventories remain close to five-year highs. In Canada, producers have increased production in anticipation of increased demand from LNG Canada Phase 1, which became operational earlier this year. As LNG Canada approaches full design capacity, this is expected to improve forward AECO prices, especially from the lows experienced in the third quarter of 2025 ($0.63/mcf) and 2024 ($0.69/mcf), which were the lowest average quarterly prices on record dating back to 1988. To mitigate downside risk, InPlay has implemented a comprehensive hedging program providing protection against current market volatility. Details of the Company's current hedges are provided in the "Hedging Summary" section of the Reader Advisories.
The continued development of our high-quality assets combined with InPlay's strong operational track record, positions the Company to deliver sustainable FAFF for many years ahead. InPlay remains focused on disciplined capital spending in the current commodity price environment, prioritizing FAFF, long-term debt reduction, per-share growth and continuing our return to shareholder strategy.
Third Quarter 2025 Highlights
Achieved average quarterly production of 18,970 boe/d(1)(60% light crude oil and NGLs), a 131% increase from Q3 2024. Third quarter light oil weighting increased to approximately 50% driving stronger per boe netbacks and returns. Generated strong quarterly adjusted funds flow ("AFF")(2)of $26.8 million($0.96per basic share(4)) a 104% increase from Q3 2024 despite a 14% decrease in WTI prices. Realized operating income(3)of $34.7 million, a 112% increase compared to Q3 2024. Returned $7.5 millionto shareholders via monthly dividends (9% yield relative to current share price). Since November 2022, InPlay has distributed $60 millionin dividends, including dividends declared to date in the fourth quarter.
Third Quarter 2025 Financial & Operations Overview:
Quarterly production averaged 18,970 boe/d(1)(60% light crude oil and NGLs), exceeding expectations by approximately 700 boe/d despite no new wells coming on production for the past six and a half months. This strong performance was driven by low decline base production and continued outperformance of wells drilled in the first quarter of 2025, as outlined above.
September production was affected by a heavy turnaround period, including downtime at non-operated and operated facilities and four days of planned outage to support expansion of an operated gas plant in our second largest producing area. These items impacted production by approximately 750 boe/d (50% light oil and NGLs) during the month. The impacted production had a higher gas weighting as we shut-in lower rate oil wells with higher gas rates in this period, which mitigated the revenue impact and had the indirect benefit of deferring natural gas production to realize stronger natural gas pricing in the fourth quarter.
In the third quarter, three (3.0 net) ERH wells were drilled on the acquired assets with average length of 2.2 miles. Drilling operations averaged 11 days per well, approximately 7 days faster than offsetting wells recently drilled by other operators. Initial production from these wells, which are still in the clean-up stage, is comparable with other wells that have significantly exceeded type curves at this stage.
Additionally, InPlay drilled two (2.0 net) ERH wells, which are currently being completed and are expected to come on production in mid-November. Drilling operations on these wells averaged 10 days per well, approximately 5 days faster than offsetting wells recently drilled by other operators. Due to production exceeding forecast, completion operations were strategically delayed on these two wells to align with the stronger winter natural gas pricing season, and to provide a higher production rate heading into 2026. The Company also completed a significant operated gas plant expansion ahead of schedule and with minimal downtime, doubling the plant's capacity from 5 mmscfd to 10 mmscfd.
Royalty rates increased to 15.7% in the third quarter compared to 12.9% in the second quarter of 2025. The increase was primarily driven by the strong performance and exceptionally short payout periods of two wells drilled in the first quarter of 2025. These wells came off the Crown royalty holiday period earlier than anticipated, resulting in higher royalty payments for the quarter. Looking ahead, royalty rates are expected to decrease in the fourth quarter, as five new wells are brought on production with the Crown royalty holiday period.
Quarterly operating costs were higher due to slightly higher well servicing costs, additional facility maintenance costs associated with turnarounds and one-time prior period costs being recognized in the quarter. The Company's hedging program realized $2 millionin hedging gains in the third quarter, predominantly driven by the natural gas hedges placed as protection for the low gas price environment that was anticipated.
InPlay generated AFF of $26.8 million($0.96per basic share) a 104% increase from the third quarter of 2024. These results were achieved despite a 14% decline in WTI pricing and lower than forecasted natural gas prices, with AECO pricing being 8% lower than the previous multi-decade low levels experienced in Q3 2024. During the Q3 2025, the Company paid $7.5 millionin dividends, bringing the total dividends paid for the first nine months of 2025 to $19.5 million.
Financial and Operating Results:
| (CDN) ($000's) | Three months ended September 30 | Nine months ended September 30 | | | | | 2025 | 2024 | 2025 | 2024 | | Financial | | | | | | Oil and natural gas sales | 79.3 | 34.2 | 209.9 | 113.7 | | Adjusted funds flow(2) | 26.8 | 13.1 | 83.7 | 49.8 | | Per share – basic(3)(5) | 0.96 | 0.87 | 3.59 | 3.31 | | Per share – diluted(3) (5) | 0.96 | 0.84 | 3.59 | 3.18 | | Per boe(3) | 15.36 | 17.36 | 18.93 | 21.40 | | Comprehensive income (loss) | (4.8) | 0.1 | (10.9) | 7.2 | | Per share – basic(5) | (0.17) | 0.01 | (0.47) | 0.48 | | Per share – diluted(5) | (0.17) | 0.01 | (0.47) | 0.47 | | Dividends | 7.5 | 4.1 | 19.5 | 12.3 | | Per share(5) | 0.27 | 0.27 | 0.84 | 0.82 | | Capital expenditures – PP&E and E&E | 22.3 | 25.2 | 40.8 | 56.8 | | Property acquisitions (dispositions) | (1.7) | (0.0) | 291.9 | (0.0) | | Net debt(2) | (228.4) | (68.0) | (228.4) | (68.0) | | Shares outstanding(5) | 27.8 | 15.0 | 27.8 | 15.0 | | Basic weighted-average shares(5) | 27.8 | 15.0 | 23.3 | 15.0 | | Diluted weighted-average shares(5) | 27.8 | 15.5 | 23.3 | 15.5 | | Operational | | | | | | Daily production volumes | | | | | | Light and medium crude oil (bbls/d) | 9,122 | 3,279 | 7,647 | 3,467 | | Natural gas liquids (boe/d) | 2,334 | 1,418 | 2,105 | 1,448 | | Conventional natural gas (Mcf/d) | 45,081 | 21,052 | 38,596 | 21,446 | | Total (boe/d) | 18,970 | 8,206 | 16,185 | 8,489 | | Realized prices(3) | | | | | | Light and medium crude oil & NGLs ($/bbls) | 72.35 | 75.77 | 72.88 | 77.33 | | Conventional natural gas ($/Mcf) | 0.75 | 0.76 | 1.51 | 1.63 | | Total ($/boe) | 45.47 | 45.32 | 47.50 | 48.87 | | Operating netbacks ($/boe)(4) | | | | | | Oil and natural gas sales | 45.47 | 45.32 | 47.50 | 48.87 | | Royalties | (7.13) | (6.78) | (6.56) | (6.33) | | Transportation expense | (0.87) | (0.88) | (0.85) | (0.99) | | Operating costs | (17.61) | (16.01) | (16.06) | (15.39) | | Operating netback(4) | 19.86 | 21.65 | 24.03 | 26.16 | | Realized gain (loss) on derivative contracts | 1.07 | 1.24 | 0.35 | 0.58 | | Operating netback (including realized derivative contracts)(4) | 20.93 | 22.89 | 24.38 | 26.74 |
On behalf of the entire InPlay team and our Board of Directors, we extend our sincere gratitude to our shareholders for their continued support as we execute our strategy focused on disciplined growth, shareholder returns, and long-term value creation. We are excited by our operational momentum and strong production performance, which positions the Company for a successful, capital efficient 2026. We look forward to sharing our 2026 capital budget in January.
| Notes: | | | | | 1. | See "Production Breakdown by Product Type" at the end of this press release. | | | 2. | Capital management measure. See "Non-GAAP and Other Financial Measures" contained within this press release. | | | 3. | 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. | | | 4. | Supplementary measure. See "Non-GAAP and Other Financial Measures" contained within this press release. | | | 5. | Common share and per common share amounts have been updated to reflect the six for one (6:1) common share consolidation effective April 14, 2025. | | | | |
For further information please contact:
| Doug Bartole President and Chief Executive Officer InPlay Oil Corp. Telephone: (587) 955-0632 | | Darren Dittmer Chief Financial Officer InPlay Oil Corp. Telephone: (587) 955-0634 | | | | |
Reader Advisories
Hedging Summary
| | Q4/25 | Q1/26 | Q2/26 | Q3/26 | Q4/26 | Q1/27 | | | | | | | | | | | | Natural Gas AECO Swap (mcf/d) | 15,800 | 15,165 | 14,215 | 14,215 | 8,560 | 4,265 | | | Hedged price ($AECO/mcf) | $2.65 | $2.85 | $3.00 | $3.00 | $3.05 | $3.65 | | | | | | | | | | | | Natural Gas AECO Costless Collar (mcf/d) | 12,640 | 12,320 | 11,375 | 11,375 | 16,400 | 18,950 | | | Hedged price ($AECO/mcf) | $2.20 - $3.40 | $2.25 - $3.50 | $2.45 - $3.50 | $2.45 - $3.50 | $2.80 - $4.40 | $2.90 - $4.85 | | | | | | | | | | | | Crude Oil WTI Swap (bbl/d) | 2,500 | 3,750 | 2,000 | 2,000 | 2,000 | 2,000 | | | Hedged price ($USD WTI/bbl) | $62.20 | $60.30 | $60.90 | $60.90 | $61.05 | $61.05 | | | Crude Oil WTI Costless Collar (bbl/d) | 2,300 | - | - | - | - | - | | | Hedged price ($USD WTI/bbl) | $56.30 - $62.70 | - | - | - | - | - | | | | | | | | | | | | Crude Oil WTI Three-way Collar (bbl/d) | 1,300 | 1,000 | 2,500 | 1,750 | 1,750 | - | | | Low sold put price ($USD WTI/bbl) | $59.50 | $50.00 | $50.00 | $50.00 | $50.00 | - | | | Mid bought put price ($USD WTI/bbl) | $67.50 | $57.50 | $57.50 | $57.50 | $57.50 | - | | | High sold call price ($USD WTI/bbl) | $83.00 | $72.10 | $71.95 | $72.15 | $72.15 | - | | | | | | | | | | | | USD/CAD Average Forward Rate Swap (US $'000s ) | 8,000 | 2,000 | 2,000 | - | - | - | | | Hedged rate (USD/CAD) | 1.388 | 1.379 | 1.379 | - | - | - | | | USD/CAD Costless Collar (US $'000s ) | - | 2,000 | 2,000 | - | - | - | | | Hedged rate (USD/CAD) | - | $1.35 - $1.40 | $1.35 - $1.40 | - | - | - | | | USD/CAD Variable Rate Collar (USD/CAD) | - | - | - | 3,750 | 3,750 | - | | | Put strike rate (USD/CAD) | - | - | - | $1.35 | $1.35 | - | | | Restrike rate (USD/CAD) | - | - | - | $1.38 | $1.38 | - | | | Call strike rate (USD/CAD) | - | - | - | $1.40 | $1.40 | - | | | Electricity AESO Swap (kW) | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | | | Hedged price ($kWh) | $0.06217 | $0.06217 | $0.06217 | $0.06217 | $0.06217 | $0.06217 | |
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", "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 per share
Management considers FAFF and FAFF per share 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 that can be used for additional capital activity, corporate acquisitions, repayment of debt or decommissioning expenditures or potentially return of capital to shareholders. FAFF per share is calculated by the Company as FAFF divided by weighted average shares outstanding. Refer below for a calculation of Free Adjusted Funds Flow and FAFF per share. Refer to the "Forward Looking Information and Statements" section for a calculation of forecast FAFF and FAFF per share.
| | Three Months Ended
September 30 | Nine Months Ended
September 30 | | | | | 2025 | 2024 | 2025 | 2024 | | Adjusted funds flow | 26,800 | 13,104 | 83,665 | 49,774 | | Exploration and dev. capital expenditures | 22,305 | 25,178 | 40,806 | 56,864 | | Property acquisitions (dispositions) | - | (13) | 343 | (37) | | Free adjusted funds flow | 4,495 | (12,061) | 42,516 | (7,053) | | Weighted average number of common shares (basic) | 27,800 | 15,020 | 23,296 | 15,024 | | FAFF per share | 0.16 | (0.80) | 1.83 | (0.47) | | | | | | |
Free Adjusted Funds Flow Yield
InPlay uses "free adjusted funds flow yield" as a key performance indicator. When presented on a corporate basis, free adjusted funds flow is calculated by the Company as free adjusted funds flow divided by the market capitalization of the Company. When presented on an asset basis for acquisition purposes, free adjusted funds flow is calculated by the Company as free adjusted funds flow divided by the operating income of the Acquired Assets. Management considers FAFF yield to be an important performance indicator as it demonstrates a Company or asset's ability to generate cash to pay down debt and provide funds for potential distributions to shareholders. Refer to the "Forward Looking Information and Statements" section for a calculation of forecast FAFF Yield.
Operating Income/Operating Netback per boe/Operating Income Profit Margin
InPlay uses "operating income", "operating netback per boe" and "operating income profit margin" as key performance indicators. Operating income is calculated by the Company as oil and natural gas sales less royalties, operating expenses and transportation expenses and is a measure of the profitability of operations before administrative, share-based compensation, financing and other non-cash items. Management considers operating income an important measure to evaluate its operational performance as it demonstrates its field level profitability. Operating income should not be considered as an alternative to or more meaningful than net income as determined in accordance with GAAP as an indicator of the Company's performance. Operating netback per boe is calculated by the Company as operating income divided by average production for the respective period. Management considers operating netback per boe an important measure to evaluate its operational performance as it demonstrates its field level profitability per unit of production. Operating income profit margin is calculated by the Company as operating income as a percentage of oil and natural gas sales. Management considers operating income profit margin an important measure to evaluate its operational performance as it demonstrates how efficiently the Company generates field level profits from its sales revenue. Refer below for a calculation of operating income, operating netback per boe and operating income profit margin. Refer to the "Forward Looking Information and Statements" section for a calculation of forecast operating income, operating netback per boe and operating income profit margin.