Thursday, January 13, 2022
InPlay Oil (IPOOF)(IPO:CA)
What to do when everything’s going well? Do more!
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 set initial 2022 capital budget and operational guidance above our aggressive targets. Management plans to spend C$58 million (vs our C$52) to drill 17 wells (16). With wells paying for themselves in months, expanding drilling is an easy decision. Notably, six of the wells will be drilled in the first quarter which will add to production early in the year. Management forecasts 2022 production of 8,900-9,200 BOE/day in line with our estimate of 9,200 BOE/day. InPlay has a track record of upping guidance if drilling is successful and we would not be surprised to see management do so again in 2022.
Increased drilling means improved financial results. Management projects AFF (Adjusted Fund Flow) of C$111-$117 million in 2022 above our model’s C$110 million. The higher amount largely reflects a higher oil price assumption ($72.50/bbl vs $70/bbl) but also speaks well about management’s expectations regarding well operating costs. Management projects net debt at the end of 2022 of C$22-$28 …
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.
