Thursday, September 09, 2021
InPlay Oil (IPOOF)(IPO:CA)
New 2022 Guidance Highlights Value of Stock, Price Target Raised
As of April 24, 2020, Noble Capital Markets research on InPlay Oil is published under ticker symbols (IPOOF and IPO:CA). The price target is in USD and based on ticker symbol IPOOF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target. InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQZ Exchange under the symbol IPOOF.
Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
InPlay management gave updated end-of-the-year and initial 2022 production and cash flow guidance. Guidance was above our expectations, reflecting the strong performance of recent wells drilled in the Pembina Cardium. Production guidance for 2021 at the high end of the previous range of 5,500-5,750 boe/d is above our model assumptions of 5,613 boe/d. Initial guidance for 2022 is even more impressive at 6,300-6,550 boe/d versus our assumptions of 5,894 boe/d. The company has increased its capital budget and clearly expects favorable drilling results at Pembina to continue.
Favorable production means higher cash flow. Management estimates that based on current energy prices, it will generate Adjusted Funds Flow of C$71.5-$74.5 million in 2022. This is significantly above our estimate of C$47.3 million and is roughly equal to the current market capitalization of the company on the Canadian exchange. Estimated free cash flow of C$38-$40 million will allow the company to …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
