IPC Announces Third Quarter 2026 Financial and Operational Results

International Petroleum Corporation (IPC or the Corporation) (TSX, Nasdaq Stockholm: IPCO) today released its financial and operational results and related management’s discussion and analysis (MD&A) for the three and nine months ended September 30, 2026.

William Lundin, IPC's President and Chief Executive Officer, comments: “2026 continues to be a transformational year for IPC as the Blackrod Phase 1 development in Canada progressively ramps up production after successfully achieving first oil in May 2026. We are very pleased with the performance of the Blackrod field and the constructed facilities, and IPC remains on track to achieve the Phase 1 forecast plateau production rate of 30,000 barrels of oil per day (bopd) in 2027. IPC benefited from exposure to strong benchmark oil prices in the third quarter, with robust operating cash flows ahead of forecast. Following the completion of the Blackrod Phase 1 project spend, IPC recommenced share repurchases under the normal course issuer bid (NCIB), purchasing and cancelling approximately 1.1 million IPC shares during the quarter. The Board has authorized IPC to apply for renewal of the NCIB into 2027 as we continue to see share repurchases as an effective way to return value to shareholders at the same time as IPC aims to grow production and cash flows.”

Q3 2026 Business Highlights

• Average net production of approximately 44,000 barrels of oil equivalent per day (boepd) for the third quarter of 2026, in line with guidance for the period (56% heavy crude oil, 12% light and medium crude oil and 32% natural gas).⁽¹⁾
• Production ramp-up at Blackrod Phase 1 progressed according to plan in the third quarter after successfully achieving first oil in May 2026, ahead of schedule and on budget.
• Sale of non-core asset in Canada completed in the third quarter for MCAD 70.
• 1.1 million IPC common shares purchased and cancelled during Q3 2026 under the normal course issuer bid (NCIB).
• IPC plans to seek Toronto Stock Exchange (TSX) approval for the renewal of the NCIB for the twelve month period commencing in early December 2026.

Q3 2026 Financial Highlights

• Operating costs per boe of USD 20.9 for Q3 2026, in line with guidance for the period.⁽³⁾
• Operating cash flow (OCF) generation of MUSD 79 for Q3 2026.⁽³⁾
• Capital and decommissioning expenditures of MUSD 37 for Q3 2026.
• Free cash flow (FCF) generation for Q3 2026 amounted to MUSD 27.⁽³⁾
• Net result of MUSD 60 for Q3 2026, including the gain on sale of assets in Canada during the quarter of MUSD 45.
• Net debt of MUSD 473 as at September 30, 2026, down from MUSD 509 as at June 30, 2026.⁽³⁾

Reserves and Resources

• Total 2P reserves as at December 31, 2025 of 521 MMboe, with a reserve life index (RLI) of 31 years.⁽¹⁾⁽²⁾
• Contingent resources (best estimate, unrisked) as at December 31, 2025 of 1,224 MMboe.⁽¹⁾⁽²⁾

2026 Annual Guidance

• Full year 2026 average net production guidance range maintained at 44,000 to 47,000 boepd.⁽¹⁾
• Full year 2026 operating costs guidance range maintained at USD 18 to 20 per boe.⁽³⁾
• Full year 2026 OCF revised guidance estimated at between MUSD 275 and 350 (assuming Brent USD 80 to 110 per barrel for the remainder of 2026) from previous guidance of between MUSD 230 and 330 (assuming Brent USD 70 to 90 per barrel).⁽³⁾⁽⁴⁾
• Full year 2026 capital and decommissioning expenditures guidance forecast revised to MUSD 185, following the addition of capital activity at the producing assets.
• Full year 2026 FCF revised guidance estimated at between MUSD 35 and 110 (assuming Brent USD 80 to 110 per barrel for the remainder of 2026) from previous guidance of between MUSD 10 and 110 (assuming Brent USD 70 to 90 per barrel).⁽³⁾⁽⁴⁾

During the third quarter of 2026, benchmark international oil prices remained at elevated levels, with Brent oil prices averaging over USD 97 per barrel during the quarter. Market volatility continued during the quarter given the ongoing conflicts in the Middle East as well as uncertainties leading up to the fall midterm elections in the United States. The International Energy Agency (IEA) member countries’ strategic reserves release (SPR) continued during the quarter to attempt to alleviate some of the worldwide energy supply disruptions. As part of the SPR releases, G7 and IEA members also agreed to prioritize diesel fuel releases in order to combat high diesel prices, particularly in the US and Europe, which should add to the demand for heavy oil. The crude oil market remains tight and supported by geopolitical concerns over energy security. IPC retains full exposure to West Texas Intermediate (WTI) and Brent oil price upside with no hedges in place for these benchmark prices.

The third quarter 2026 WTI to Western Canadian Select (WCS) price differential averaged approximately USD 14 per barrel, with the differential widening at the end of the third quarter and into the fourth quarter. The WTI to WCS differential remains sensitive to refinery demand for heavy crude on the US Gulf Coast and the availability of competing heavy crude supplies. IPC is well-positioned to partially mitigate the differential increase with 2026 full year WTI to WCS differential hedges for 5,000 bopd at USD -12.50 per barrel. In addition, IPC has hedged from July 2026 to December 2027, 5,000 bopd and from January 2027 to December 2027, a further 5,000 bopd of the differential between the WCS price in Hardisty, Canada and the WCS price in Houston, USA, effectively hedging the transportation cost between the locations, at USD -7.55 per barrel and USD -7.50 per barrel, respectively. In addition, 2,000 bopd of quality differential between the WCS in Houston and the WTI are hedged from July to December 2026 at USD -3.65 per barrel.

The average Canadian gas benchmark price, AECO, was CAD 1.55 per Mcf for the third quarter of 2026, with gas demand during the summer months being typically lower than in colder months. The positive news for the Canadian gas market during the third quarter included closing of the acquisition by Shell of a large Canadian gas producer and the decision by the owners of LNG Canada to proceed with Phase 2 of that project. These strategic moves show international optimism on the strength and stability of the Canadian gas market which could benefit future Canadian gas prices. IPC implemented hedges for 15,000 GJ (approximately 14,500 Mcf) per day at CAD 2.73 per GJ (approximately CAD 2.84 per Mcf) from April to October 2026.

Third Quarter 2026 Highlights and Full Year 2026 Guidance

During the third quarter of 2026, IPC’s portfolio delivered average net production of 44,000 boepd, in line with the guidance for the quarter. The producing assets in Canada, Malaysia and France benefited from increased activity and strong oil commodity prices. IPC maintains the full year 2026 average net production guidance range of 44,000 to 47,000 boepd.⁽¹⁾

IPC’s operating costs per boe for the third quarter and the first nine months of 2026 were, respectively, USD 20.9 and USD 19.2, in line with guidance. Full year 2026 operating expenditure guidance of USD 18.0 to 20.0 per boe remains unchanged.⁽³⁾

Operating cash flow (OCF) generation for the third quarter of 2026 was robust at USD 79 million. Full year 2026 OCF guidance is tightened to USD 275 to 350 million (assuming Brent USD 80 to 110 per barrel for the remainder of 2026).⁽³⁾⁽⁴⁾

Capital and decommissioning expenditure for the third quarter of 2026 was USD 37 million. Full year 2026 capital and decommissioning expenditure is revised to USD 185 million, largely attributed to the addition of capital activity at the Canadian producing assets to take advantage of elevated commodity prices.

Free cash flow (FCF) generation was USD 27 million during the third quarter of 2026, representing a seven times increase in FCF compared to the second quarter of 2026. As production continues to grow in Q4 2026 and into 2027, IPC is strongly positioned for increased FCF generation. Full year 2026 FCF guidance is modified to USD 35 to 110 million (assuming Brent USD 80 to 110 per barrel for the remainder of 2026).⁽³⁾⁽⁴⁾

As at September 30, 2026, IPC’s net debt position was USD 473 million, from a net debt position of USD 509 million as at June 30, 2026. IPC’s net debt to trailing twelve-month EBITDA to end Q3 2026 is 1.8 times, after being above 2 times for the prior reporting periods in 2026. Rapid deleveraging is expected to continue in this high commodity price environment.⁽³⁾

As previously announced, IPC has increased the facility size of its Canadian credit facility to approximately USD 250 million and extended the maturity of that facility to May 2028. IPC also previously announced the refinancing of its USD 450 million of unsecured bonds, with maturity in October 2030. This strong liquidity position, combined with the better than forecast cash flow generation in 2026, supports IPC in following through on its key strategic objectives to maximize stakeholder value.

Stakeholder Returns: Normal Course Issuer Bid

IPC renewed the current NCIB in December 2025, with the ability to repurchase up to approximately 6.5 million common shares up to early December 2026. Under the 2025/2026 NCIB, IPC repurchased and cancelled approximately 1.1 million common shares during the third quarter of 2026. The average price of common shares repurchased under the 2025/2026 NCIB during the third quarter was around SEK 234 / CAD 34 per share.

As at September 30, 2026, IPC had a total of 111,727,666 common shares issued and outstanding and IPC held no common shares in treasury. As at November 3, 2026, IPC had a total of 111,521,876 common shares issued and outstanding and IPC held no common shares in treasury.

The IPC Board of Directors has approved, subject to acceptance by the Toronto Stock Exchange (TSX), the renewal of IPC’s NCIB for a further twelve months from December 2026 to early December 2027. We expect that the 2026/2027 NCIB will permit IPC to purchase through the TSX and Nasdaq Stockholm, and cancel, up to a further approximately 6.3 million IPC common shares, representing approximately 5.7% of the total current outstanding common shares (or 10% of IPC’s “public float” under applicable TSX rules).

Blackrod

The Blackrod asset is 100% owned by IPC and hosts the largest booked reserves and contingent resources within the IPC portfolio. Blackrod Phase 1 targets 30,000 bopd production through the newly commissioned Central Processing Facility (CPF) and contains 311 MMboe of 2P reserves, with the full Blackrod field having an additional 1,145 MMboe of 2C resources.⁽¹⁾⁽²⁾

As previously announced, first oil at Blackrod Phase 1 was successfully achieved at the end of May 2026, ahead of schedule and on budget (MUSD 855). During the third quarter, IPC successfully completed the first, and subsequently ongoing, oil sales from the Blackrod commercial plant in Edmonton, proving the effectiveness of the pipeline connected asset.

The production ramp up progressed as planned during the third quarter, with current spot rates exceeding 10,000 bopd and early results indicating encouraging subsurface performance. At the time of this report, around 16 well pairs are currently on production, a further 14 are planned for conversion before year-end, and 10 well pairs are expected to be converted to production in early 2027. An incremental 6 sustaining well pairs were successfully drilled to take advantage of economies of scale and for redundancy.

With excellent overall Phase 1 project delivery and initial performance, IPC has sanctioned incremental resource maturation works through seismic and stratigraphic well drilling outside of the initial development area planned to start in late Q4 2026. The low-cost resource conversion work is expected to allow for additional bookable reserves and positively position IPC for an eventual future phase expansion. In addition, IPC has sanctioned a blending optimization project supported by robust economics through reduced condensate blending needs with completion expected by end 2027.

Blackrod is a multi-generational asset that has been unlocked through the first phase of commercial development. More than 1.45 billion barrels of recoverable resource lies within the contiguous reservoir wholly owned by IPC. Future facilities expansion and phase development concepts continue to be matured by IPC. Blackrod has regulatory approval for up to 80,000 bopd.⁽¹⁾⁽²⁾

Notes:

1. See “Supplemental Information regarding Product Types” in “Reserves and Resources Advisory” below. See also the annual information form for the year ended December 31, 2025 (AIF) available on IPC’s website at www.international-petroleum.com and under IPC’s profile on SEDAR+ at www.sedarplus.ca.
2. See “Reserves and Resources Advisory“ below. Further information with respect to IPC’s reserves, contingent resources and estimates of future net revenue are described in the AIF.
3. Non-IFRS measures, see “Non-IFRS Measures” below and in the MD&A.
4. OCF and FCF forecasts at Brent USD 80 to 110 per barrel assume Brent to WTI differential of USD 5 to 10 per barrel and average WTI to WCS differential of USD 22 per barrel for the remainder of 2026. OCF and FCF forecasts assume gas price on average of approximately CAD 2.25 per Mcf for the remainder of 2026.