Presentation

International Petroleum Corporation (IPC) was spun off from Lundin Energy (Lundin Petroleum at the time) and listed as a separate company in Canada and Sweden in 2017. At the time, IPC’s asset portfolio consisted of Lundin Energy’s former non-Norwegian producing assets, i.e. oil-weighted assets in France, Malaysia and the Netherlands. The IPC management team moved over from Lundin Petroleum to pursue a strategy of acquisition-driven growth.

In 2017, IPC announced its first acquisition when it bought the Suffield oil and natural gas asset in Alberta, Canada from Cenovus. And a year later, in 2018, IPC proceeded to acquire fellow Lundin Group company Blackpearl Resources and its main assets Onion Lake and Blackrod, also in Canada.

As a result, IPC now holds 272 mill boe of 2P reserves and expects to produce around 45,000 boe/day on average 2021-2025e, significantly up relative to 2017 levels, and the portfolio is now geared to Canadian heavy oil and the WCS price benchmark. IPC’s assets generate robust operating cash flow at current oil prices with a 2021e operating costs guidance of USD 15.5/boe.

After a build-up in debt following the acquisitions in 2017-2018 and the oil price downturn in 2020, IPC is currently reducing its net debt position rapidly from the year-end 2020 level of USD 321m. The company will likely return to share buybacks as the net debt/EBITDA approaches 1.0x towards the end of 2021, and dividends could be in the cards for 2022. Which naturally will be weighed against internal and external growth opportunities in the coming years.