InPlay Oil (IPO.TO and IPOOD) Valuation Update - April 25

[dan_s]

I was able to get two new analysts' reports on InPlay that are based on the Post-Consolidation share count of 27.939 million shares. Send me an email and I will send them to you: dmsteffens@comcast.net

At the time of this post IPO.TO was trading at $7.46Cdn and First Call's price target is $13.73Cdn.

I have updated my forecast/valuation model for InPlay's Q4 results and proforma guidance that includes the impact of the Pembina Area Acquisition that closed on April 7th. I have also adjusted for the 1 for 6 Common Stock Consolidation that became effective on April 14.

My current valuation is now $13.00Cdn per share. My valuation is based on 2.7 X annualized operating cash flow per share for 2025 & 2026, which I believe is a reasonable valuation multiple until I get more clarification on their 2025 capital program.

My forecast for 2025 assumes that InPlay's Q3 production is approximately 18,750 Boepd, which is what they said production was when the acquisition closed on April 7. I am anticipating that InPlay's game plan will be to focus on maintenance this summer and waiting for higher natural gas prices to ramp up a drilling program in Q4.

My updated forecast/valuation model has been posted to the EPG website and our updated profile on the Company will be posted to the website this afternoon.

InPlay will be announcing Q1 results mid-May and they will also be updating their drilling program for 2025. During 1H 2025 InPlay will be generating a lot of free cash flow because they will not be starting their 2025 drilling program until after Spring Break Up in June.