InPlay Oil (IPOOF)(IPO:CA)
Doubling Our Price Target On Higher Production And Energy Prices
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.
Fourth-quarter and 2021 results were generally in line with expectations and previous management guidance. Adjusted funds flow rose 532% in response to higher energy prices, a 45% increase in production volumes, reduced operating costs per unit produced and lower financing costs. Management raised its guidance for AFF in 2022 to $141-$150 million from $111-117 million as it raised its assumed energy prices towards current levels. A previously-announced boost in drilling following a tuck-in acquisition last fall is coming to fruition and will help grow production in 2022.
Higher energy prices are good but InPlay is really a story of improved operating results. The company drilled two wells this quarter in lands acquired in the Prairie Storm acquisition and both are producing above expectations. It also drilled three wells in existing Pembina territories that are also producing above expectations. The company enters the second quarter with the drilling program six …