InPlay Oil (IPOOF) Q3 Results - Nov 10
Posted: Wed Nov 10, 2021 9:54 am
My initial comments are in blue. I will post my updated forecast/valuation model for InPlay by noon.
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CALGARY, Alberta, Nov. 10, 2021 (GLOBE NEWSWIRE) -- InPlay Oil Corp. (TSX: IPO) (OTCQX: IPOOF) (“InPlay” or the “Company”) is pleased to announce its financial and operating results for the three and nine months ended September 30, 2021. InPlay’s condensed unaudited interim financial statements and notes, as well as Management’s Discussion and Analysis (“MD&A”) for the three and nine months ended September 30, 2021 will be available at “www.sedar.com” and our website at “www.inplayoil.com”.
We are very pleased to present our third quarter financial and operating results in which the efficient execution of our operational and capital program, coupled with the significantly improved commodity price environment, has allowed us to achieve record production and financial results.
Third Quarter 2021 Financial & Operating Highlights
Achieved record quarterly production for the second consecutive quarter with third quarter production averaging 6,011 boe/d(1) (64% light oil and NGLs), an increase of 61% compared to 3,742 boe/day (69% light oil and NGLs) in the third quarter of 2020 and an increase of 12% compared to 5,386 boe/d (68% light oil and NGLs) in the second quarter of 2021. < My Q3 forecast was 6,065 Boepd, 54.4% light oil, 12.6% NGLs and 33% natural gas.
Generated record quarterly adjusted funds flow (“AFF”) of $15.6 million ($0.23 per basic share), an increase of 675% compared to $2.0 million ($0.03 per basic share) in the third quarter of 2020 and an increase of 89% compared to $8.2 million ($0.12 per basic share) in the second quarter of 2021. < InPlay's AFF of $15.6 million compares to my operating cash flow forecast of $13.7 million. Thanks to higher netbacks below.
Increased operating netbacks by 168% to $37.09/boe from $13.85/boe in the third quarter of 2020 and by 12% from $33.11/boe in the second quarter of 2021. < This is VERY GOOD NEWS and netbacks should be even higher in Q4.
Realized increased quarterly record operating income and operating income profit margin of $20.5 million and 65% respectively compared to $4.8 million and 44% in the third quarter of 2020 and $16.2 million and 64% in the second quarter of 2021.
Continued to reduce operating expenses to a quarterly record $12.23/boe compared to $14.42/boe in the third quarter of 2020 and $12.51/boe in the second quarter of 2021. < Compares to my Q3 forecast of $12.50/boe.
Generated free adjusted funds flow (“FAFF”) of $5.1 million compared to $1.6 million in the third quarter of 2020 and $3.6 million in the second quarter of 2021.
Decreased net debt by 6% during the third quarter of 2021 from June 30, 2021 while also achieving production growth of 12% over the same respective period.
Strengthened our net debt to quarterly annualized earnings before interest, taxes and depletion (“EBITDA”) ratio to 1.1, compared to 5.2 in the third quarter of 2020 and 1.9 in the second quarter of 2021 achieving the lowest quarterly leverage ratio in our corporate history.
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18 months ago I didn't know if InPlay would survive the pandemic. Thanks to the low interest rate loan they got from the Canadian government, quick moves by Doug Bartole's team to cut expenses and outstanding well results this year, IPOOF is one of my Top Picks in our Small-Cap Growth Portfolio. Prior to this solid quarter, my valuation of IPOOF was $3.25US per share. My valuation will be going up.
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CALGARY, Alberta, Nov. 10, 2021 (GLOBE NEWSWIRE) -- InPlay Oil Corp. (TSX: IPO) (OTCQX: IPOOF) (“InPlay” or the “Company”) is pleased to announce its financial and operating results for the three and nine months ended September 30, 2021. InPlay’s condensed unaudited interim financial statements and notes, as well as Management’s Discussion and Analysis (“MD&A”) for the three and nine months ended September 30, 2021 will be available at “www.sedar.com” and our website at “www.inplayoil.com”.
We are very pleased to present our third quarter financial and operating results in which the efficient execution of our operational and capital program, coupled with the significantly improved commodity price environment, has allowed us to achieve record production and financial results.
Third Quarter 2021 Financial & Operating Highlights
Achieved record quarterly production for the second consecutive quarter with third quarter production averaging 6,011 boe/d(1) (64% light oil and NGLs), an increase of 61% compared to 3,742 boe/day (69% light oil and NGLs) in the third quarter of 2020 and an increase of 12% compared to 5,386 boe/d (68% light oil and NGLs) in the second quarter of 2021. < My Q3 forecast was 6,065 Boepd, 54.4% light oil, 12.6% NGLs and 33% natural gas.
Generated record quarterly adjusted funds flow (“AFF”) of $15.6 million ($0.23 per basic share), an increase of 675% compared to $2.0 million ($0.03 per basic share) in the third quarter of 2020 and an increase of 89% compared to $8.2 million ($0.12 per basic share) in the second quarter of 2021. < InPlay's AFF of $15.6 million compares to my operating cash flow forecast of $13.7 million. Thanks to higher netbacks below.
Increased operating netbacks by 168% to $37.09/boe from $13.85/boe in the third quarter of 2020 and by 12% from $33.11/boe in the second quarter of 2021. < This is VERY GOOD NEWS and netbacks should be even higher in Q4.
Realized increased quarterly record operating income and operating income profit margin of $20.5 million and 65% respectively compared to $4.8 million and 44% in the third quarter of 2020 and $16.2 million and 64% in the second quarter of 2021.
Continued to reduce operating expenses to a quarterly record $12.23/boe compared to $14.42/boe in the third quarter of 2020 and $12.51/boe in the second quarter of 2021. < Compares to my Q3 forecast of $12.50/boe.
Generated free adjusted funds flow (“FAFF”) of $5.1 million compared to $1.6 million in the third quarter of 2020 and $3.6 million in the second quarter of 2021.
Decreased net debt by 6% during the third quarter of 2021 from June 30, 2021 while also achieving production growth of 12% over the same respective period.
Strengthened our net debt to quarterly annualized earnings before interest, taxes and depletion (“EBITDA”) ratio to 1.1, compared to 5.2 in the third quarter of 2020 and 1.9 in the second quarter of 2021 achieving the lowest quarterly leverage ratio in our corporate history.
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18 months ago I didn't know if InPlay would survive the pandemic. Thanks to the low interest rate loan they got from the Canadian government, quick moves by Doug Bartole's team to cut expenses and outstanding well results this year, IPOOF is one of my Top Picks in our Small-Cap Growth Portfolio. Prior to this solid quarter, my valuation of IPOOF was $3.25US per share. My valuation will be going up.