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InPlay Oil (IPOOF)
Models updated for lower oil price assumptions
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.
We have updated our models to reflect 2019 results and lower oil price assumptions. Our models have been adjusted to reflect full 2019 operating and financial data. In addition, we have lowered our 2020 WTI oil price assumption ($30 from $40) and our long-term oil price assumption ($50 from $60) to reflect current market conditions. Our modeling still assumes a rebound in oil prices, although not at the speed and magnitude previously expected.
We are lowering our earnings, cash flow and price objective forecasts. In response lower prices, we have decreased our 2020 EBITDA forecast to break even from C$15 million, our earnings estimate to ($0.35) from ($0.25) and our price objective to $0.75 from $1.00 per share. We now assume all drilling will be halted after the end of the first quarter and that production in 2020 will not grow...
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.