CA - International Petroleum Corporation (IPCFF) Q1 2024 Earnings Call Transcript

2024-05-11 11:44:08 ET

International Petroleum Corporation (IPCFF)

Q1 2024 Earnings Conference Call

May 07, 2024 03:00 A.M. ET

Company Participants

William Lundin – President and CEO

Christophe Nerguararian - CFO

Rebecca Gordon – SVP, Corporate Planning and IR

Conference Call Participants

Teodor Sveen-Nilsen - Sparebank 1 Markets

Tom Kristiansen - Pareto Securities

Mark Wilson - Jefferies

Presentation

Operator

William Lundin

Okay. Welcome, everybody, to IPC's First Quarter Results Update Presentation. I'm William Lundin, the CEO. And joined today by Christophe Nerguararian, our CFO; as sell Rebecca Gordon, our SVP of Corporate Planning and Investor Relations. I'll start by running through the highlights and operations update, then Christophe will touch on the financial numbers. Following the presentation, we'll spend some time to take questions, which can be submitted via the web or by conference call.

So jumping into the highlights for the first quarter. On the production front, we achieved solid production of 48800 barrels of oil equivalent per day, which was on the high end of our production guidance for quarter. The full year production forecast range for the year is maintained at 46,000 to 48,000 BOE per day. Operating costs per BOE settled at $17.10 for the quarter, which was on the low end of our guidance, largely driven by the production outperformance. Full year operating expenditure guidance is maintained at $18 to $19.

It's a peak investment year for IPC, and we followed through on our plans through the first quarter of 2024 by spending U.S. $125 million, of which $96 million was spent on our Blackrod Phase 1 development project. Capital expenditure for 2024 is also unchanged at U.S. $437 million. So good production and good cost control, combined with healthy oil commodity prices translated into healthy cash flows for the business, with our Q1 OCF coming in at U.S. $89 million in line with our guidance. And our full year OCF guidance between $70 and $90 Brent has tightened as a result of some new oil benchmark hedges that we've executed which took place a couple of months back when oil prices spiked. So therefore, the OCF range for the full year is now U.S. $323 million to U.S. $363 million....

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