Inplay Q2

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CreativeEquity
Posts: 107
Joined: Sun Sep 05, 2021 5:06 pm

Inplay Q2

Post by CreativeEquity »

dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: Inplay Q2

Post by dan_s »

I told you so! This is why you pay the Big Bucks for your EPG membership. I will be updating my forecast/valuation model for IPOOF this morning. My pre-release valuation was $7.25US per share.
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Second Quarter 2022 Financial & Operating Highlights

> Achieved record average quarterly production of 9,063 boe/d (57% light crude oil and NGLs), an increase
of 68% from second quarter production in 2021 of 5,386 boe/d (68% light crude oil and NGLs) and an
increase of 10% compared to our previous record of 8,221 boe/d (59% light crude oil and NGLs) in the
first quarter of 2022. Average production per weighted average basic share increased 32% compared to the
second quarter of 2021 (43% on a debt adjusted basis) and 10% compared to the first quarter of 2022 (17%
on a debt adjusted basis). < My Q2 production forecast was 9,100 Boepd.

> Generated record quarterly adjusted funds flow (“AFF”) of $40.9 million ($0.47 per weighted average
basic share, an increase of 398% compared to $8.2 million ($0.12 per weighted average basic share) in
the second quarter of 2021 and an increase of 39% compared to $29.4 million ($0.34 per weighted average
basic share) in the first quarter of 2022, our prior record quarter. < Beat my operating cash flow forecast of $38.4 million for Q2.

> Increased operating netbacks by 84% to $61.02/boe from $33.09/boe in the second quarter of 2021 and by
32% compared to $46.06/boe in the first quarter of 2022, our prior record quarter. < Amazing!

> Realized quarterly record operating income and operating income profit margin of $50.3 million and
71% respectively compared to $16.2 million and 64% in the second quarter of 2021; $34.1 million and 65%
in the first quarter of 2022, our prior record quarter.

Reduced operating expenses to $12.28/boe compared to $12.51/boe in the second quarter of 2021 and
$12.96/boe in the first quarter of 2022, despite rising costs of services in the industry.

> Generated free adjusted funds flow (“FAFF”) of $23.1 million, a quarterly record for the Company,
resulting in a 31% reduction to net debt from March 31, 2022.

> Achieved a quarterly annualized net debt to earnings before interest, taxes and depletion (“EBITDA”)
ratio of 0.3x, compared to 1.9x in the second quarter of 2021 and 0.6x in first quarter of 2022 and a trailing
twelve-month net debt to EBITDA ratio of 0.5x to June 30, 2022.

> Realized net income of $29.0 million ($0.33 per basic share; $0.32 per diluted share). < Compares to my Q2 forecast of $16.9 million net income.

Bottomline: This stock is a Screaming Buy up to at least $5.00US per share.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: Inplay Q2

Post by dan_s »

This is very good news:

InPlay is pleased to announce that it has entered into an amended credit facility with its first-lien and second lien lenders resulting in a fully conforming revolving credit facility with an increased total lending capacity and borrowing base of $110 million. InPlay’s credit facility is now comprised of a $100 million revolving credit facility and a $10 million operating line of credit (together, the “Credit Facility”).

The term out date of the Credit Facility has been extended to May 30, 2023 with a maturity date of May 30, 2024.

As part of the renegotiated Credit Facility, the Company’s previously outstanding $25 million term facility with the Business Development Bank of Canada (“BDC”) and the remaining $14 million of its senior term facility have been repaid.

InPlay is also pleased to announce that Canadian Western Bank (“CWB”) and BDC have joined ATB Financial as members of the amended Credit Facility syndicate. The outcome of the Credit Facility redetermination is an extremely positive result for the Company and is anticipated to reduce overall interest costs and provide InPlay with a stable liquidity position.
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BOTTOMLINE: InPlay has no debt problems and they can fund all future capex with operating cash flow. I expect InPlay to make some bolt-on acquisitions that will increase production to over 12,000 Boepd in 2023. For small-caps, this level of liquidity is extremely valuable.
Dan Steffens
Energy Prospectus Group
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