Movers and SHAKERS
InPlay Oil (IPOOF)(IPO:CA)
Capital Budget and Guidance In Line With Expectations
As of April 24, 2020, Noble Capital Markets research on InPlay Oil is published under ticker symbols (IPOOF and IPO:CA). The price target is in USD and based on ticker symbol IPOOF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target. InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQZ Exchange under the symbol IPOOF.
Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Last week, IPO management set a 2021 capital budget of $23 million to drill 8 wells and projected average production of 5,100-5,400 boe/d. Our models assumed $25 million to drill 8 wells and production levels at the upper end of management's range with an exit rate of 5,600 at yearend. The company drilled three wells in the fourth quarter all under 9 days each versus previous times of 9.0-9.5 days which explains lower-than-expected capital expenditures per well.
Management projects adjusted funds flow of $30.5-$33.5 million in 2021. This is above our model's estimate of $29 million and reflects corporate and operating cost reductions of $8 million compared to the original January 2020 budget. The cost reductions come, in part, due to the securing of a $25 million second lien four-year loan facility with the Business Development Bank of Canada at a very ...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.