Focusing on what they do best – Inplay Oil (TSX:IPO)
The recent WTI oil price was buoyed by the dropping of the US oil inventory, but do not count on the continued rise of the oil price because there is still uncertainty surrounding what OPEC might or can do…….
With the WTI price hanging around $48-$50 range, we are still cautiously optimistic about the mid to long term what the oil price might do.
With the Q2 announcements for the most the oil & gas producers coming out since two weeks ago, we will be providing an update on how some of the select companies doing and what insights we can learn from the industry. With our continued focus on the Western Canadian energy space, we will start with a fairly new name which we recently started to follow in our platform: Inplay Oil (TSX:IPO)
InplayOil was run by the former Vero Energy head Doug Bartole, who sold that company successfully to Torc Oil and Gas back in 2012, at that time Vero was also focused on the Cardium light oil assets like IPO.
2017 Going Strong So Far
InPlay’s low debt levels, high operating netback assets and solid set of commodity hedges will allow the company to continue to develop its asset base in the current volatile commodity price environment, maintain financial strength, and is focusing on meaningful and sustainable per share growth for the company’s shareholder. Besides the high netback nature of the operations (comparing to the peers), IPO’s assets are also in well-developed area with ample offsetting analogus well results. The Inplay team has drilled over 200 horizontal wells in the Cardium Formation, which is one of the Inplay’s primary targets in 2017. As one of the most commonly found attributes in building successful companies, they always focus on what they do best first. In this case, Cardium oil is what they know best and they are confident they can deliver the goods again.
Recently, Inplay published its Q2 result which is quite in line with analysts’ expectations. Second quarter 2017 production averaged 3,752 boe/d (65% oil and liquids) representing a 118% increase in production over the second quarter of 2016. Capital expenditures for the year to date to June 30, 2017 amounted to $15.2 million, inclusive of $1.2 million in net asset acquisitions in the second quarter. The company is still expected to meet its exit guidance of 4300-4500 BOE/d according to their news announcement.
IPO can be growing in production next few years without acquiring new major assets, which itself can be a good sign on the debt level. The Duvernay oil definitely provides a lot of upside potential to the company and will be a great spot to watch in the near future.
Please view the company profile here:
https://nai500.com/client/0C00000IJD/
Written by NAI500 Research Team
Disclaimer: This update report does not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. NAI500 makes no guarantee, representation or warranty and the companies mentioned may be paid clients of NAI Interactive Ltd (NAI500). Do your own due diligence.
