Wednesday, July 07, 2021
InPlay Oil (IPOOF)(IPO:CA)
Production rates blowing through expectations
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.
Management indicates 2021-2Q production could be 5,325 BOE/d. Such a level represents a 7% increase over 2021-1Q production and a 70% increase over 2020-2Q production. Our models assume production of 5,167 BOE/d. Management reiterated annual guidance of 5,100-5,400 BOE/d but indicated it currently expects to be at the upper end of the range and that it would reevaluate guidance when it reports 2021-2Q results on August 11th. Our models assume 5,360 BOE/d and are subject to upward revision if management raises guidance as we expect.
The jump in production combined with higher prices is about to make cash flow explode. Management anticipates record Adjusted Funds Flow (AFF) in 2021. InPlay reported $27 million in AFF in 2018. Surpassing that amount would blow through the $21.3 million estimate currently being indicated in our models. Management plans to use cash flow to pay down debt to a level of 1.0 times EBITDA which could …
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.
