InPlay Oil (IPO.TO and IPOOF) Valuation Update - Mar 4

[dan_s]

I have updated my forecast/valuation model for InPlay, which now includes a forecast of how much a 10% U.S. tariff on the production that Inplay expects to sell into the U.S. will impact Net Income and Operating cash Flow.

After the Pembina Acquistion closes ~40% of InPlay's production will be sold into the U.S. at contracts based on WTI.

I have lowered the realized natural gas price in 2025 because Western Canadian natural gas prices are not moving up in lockstep with U.S. natural gas prices YET. I do thing they will increase eventually, in part because Canada should have an LNG export facility of their own by Q4 2025.

There is no shortage of natural gas in Western Canada. Some producers might decide to put their gas in storage to avoid paying the tariffs. Plus, it will be smart until U.S. gas prices go up before resuming exports from Canada into the U.S.

You can download the forecast model from the EPG website.