CALGARY, AB, Nov. 5, 2026 /CNW/ -- InPlay Oil Corp. (TSX: IPO) (TASE: IPO) (OTCQX: IPOOF) ("InPlay" or the "Company") is pleased to announce its financial and operating results for the three and nine months ended September 30, 2026, together with preliminary 2027 production and capital guidance. InPlay's unaudited interim financial statements and notes, and Management's Discussion and Analysis ("MD&A") for the three and nine months ended September 30, 2026 will be available at "www.sedarplus.ca" and the Company's website at "www.inplayoil.com". An updated corporate presentation will be available on our website in due course.
Message to Shareholders:
During the third quarter, InPlay continued its track record of completing highly accretive strategic transactions through the acquisition of a private oil and gas producer. The acquisition was 28% accretive to both Adjusted Funds Flow ("AFF")(1) and Free Adjusted Funds Flow ("FAFF")(2) on a per share basis and enhanced InPlay's capacity to generate FAFF going forward. It also expanded InPlay's producing asset base and drilling inventory adjacent to existing operations, strengthening our platform for continued development. Third-quarter results reflect just over five weeks of results from this complementary acquisition in our core area.
The third quarter marked InPlay's most active capital program of the year, drilling seven (6.7 net) horizontal wells along with the initiation of drilling operations on an additional one (1.0 net) well prior to quarter-end. The Company also participated in two (0.2 net) non-operated Pembina wells that were drilled in September and brought on production in early November.
Two Cardium wells drilled in the quarter were brought on production in mid-September and have performed ahead of internal expectations. These wells achieved average initial production ("IP") rates of 231 boe/d (97% light oil and NGLs) per well over their first 30 days of production and they are currently producing at a rate of 344 boe/d (88% light oil and NGLs) per well, significantly ahead of internal oil type curves.
Three additional Cardium wells were brought on production in late-October and are currently in the clean-up phase. InPlay also commenced development drilling on its newly acquired Belly River assets. Drilling began on a two-well pad in late September with the first well being fully drilled by quarter-end. Both wells have been brought on production in the past few days.
Drilling also began on a separate two-well Cardium pad in late September, with the first well being fully drilled by quarter-end. Both wells have now been drilled, are currently being completed and are expected to come on production mid-November. Wet weather has delayed the availability of frac crews by two to three weeks from originally planned.
The Company's 2026 capital program is substantially complete, with expenditures to date below budget. Strong capital efficiencies supported the previously announced expansion of the drilling program where the number of planned wells increased by 30% with only a 15% increase in capital (from mid-point).
The third quarter included significant capital investment with only two (2.0 net) wells brought on production during the period. Seven (4.9 net) wells drilled in the third quarter, along with an additional two (2.0 net) wells drilled through quarter end, are coming on production in a short, four-week window through mid-November. This substantial influx of new production, combined with the strong commodity price outlook, are expected to drive record fourth quarter AFF and FAFF, providing strong operational momentum heading into 2027.
Reflecting the strong 2026 production performance to date, and notwithstanding weather related delays, InPlay reiterates its 2026 average annual production guidance of 18,900 -- 19,400 boe/d(3) (61% -- 63% light oil and NGLs). Based on current strip pricing, the Company has increased forecast 2026 AFF by 10% to $178 -- $184 million. Forecast FAFF has increased by 19% to $96 -- $104 million, representing a FAFF yield of 19% -- 21%. Year-end net debt to annualized Q4 2026 EBITDA is forecast at 1.0x -- 1.1x.
Preliminary 2027 Guidance
InPlay is excited to provide preliminary 2027 production and capital guidance. With 2027 WTI strip pricing of approximately US$80/bbl and AECO pricing below $2.00/GJ, the Company's capital program will target increased organic growth through focused oil-weighted drilling, including expanded Belly River development on newly acquired lands. This focus prioritizes higher-value oil production over total boe volumes, with over 85% of our revenue coming from oil.
Key highlights of the preliminary 2027 capital program include:
-- Capital program of $95 -- $105 million.
-- Production of 20,100 -- 21,000 boe/d(3) (64% -- 65% light oil and NGLs).
-- Oil production per share growth of 15%(5) from 2026.
-- Total production per share growth of 8%(5) from 2026.
-- AFF of $206 -- $218 million, a 17%(5) increase from 2026.
-- FAFF of $101 -- $123 million, a 12%(5) increase from 2026.
-- FAFF yield of 22%(5), among the highest of Canadian-listed E&P companies.
-- Capital expenditures represent 47%(5) of AFF. Capital expenditures plus
dividends represent 61%(5) of AFF.
InPlay's forecast FAFF of $101 -- $123 million is expected to support the Company's dividend, significant share repurchases and material debt reduction. Share repurchases represent a compelling opportunity to enhance shareholder value as the Company believes the prevailing market price of its Common Shares does not reflect the underlying intrinsic value. Strong FAFF generation and debt reduction are also expected to increase financial capacity for further accretive acquisitions, building on InPlay's track record of delivering per share growth.
The table below outlines InPlay's 2027 preliminary guidance:
Preliminary
2027 Guidance(6)
WTI (US$/bbl) $80.00
FX (US$/CAD$) 0.72
AECO (CAD$/GJ) $1.90
Production (boe/d) (3) 20,100 -- 21,000
Oil production (bbl/d) 10,725 -- 11,110
Capital ($ millions) $95 -- $105
AFF ($ millions) (1) $206 -- $218
FAFF ($ millions) (2) $101 -- $123
InPlay retains flexibility to adjust activity as commodity prices, services availability and costs evolve. The Company may advance a portion of its 2027 capital program into December 2026 to retain its drilling rig and crew following their exceptionally strong performance in 2026. This would also allow the Company to secure services ahead of an anticipated period of high industry activity in Western Canada during the first quarter of 2027.
InPlay expects to announce its finalized 2027 capital budget and guidance in January 2027, following Board approval. Preliminary guidance remains subject to refinement as the Company completes its planning process and assesses prevailing market conditions.
Third Quarter 2026 Highlights:
-- Achieved average quarterly production of 19,254 boe/d(1) (62% light crude
oil and NGLs), a 3% increase from Q2 2026.
-- Improved light oil production to 9,565 bbl/d, a 5% increase from Q3 2025
driving strong per boe netbacks and returns.
-- Realized operating income(2) of $61.7 million, a 78% increase from Q3
2025, and an operating income profit margin(2) of 52%, a 19% improvement
from Q3 2025. Operating netbacks(2) improved to $34.85/boe, an increase
of 75% compared to Q3 2025.
-- Delivered record AFF of $51.4 million ($1.86 per basic share(4)), a 92%
increase from Q3 2025.
-- Generated FAFF of $29.0 million.
-- Returned $7.5 million ($0.27/share) to shareholders through monthly
dividends (6.0% yield relative to current share price). Cumulative
dividends declared since November 2022 total approximately $90 million
($4.41/share), including dividends declared to date in Q4 2026.
-- Repurchased and cancelled 0.7% of outstanding common shares during the
quarter. Since the initiation of purchases under our Normal Course Issuer
Bid ("NCIB") in June 2026, 2.1% of the Company's outstanding common
shares have been repurchased and cancelled to date.
-- Successfully closed the accretive acquisition of a private light oil
weighted producer on August 21, 2026 for $54.4 million, adding 1,400
boe/d (85% light oil and NGLs) of production at closing and 50 net
drilling locations with short payout periods in our core area.
-- On July 24, 2026, the Company renewed its Senior Credit Facility, which
now consists of committed amounts of a $140 million revolving line of
credit and a $50 million operating line of credit. In addition, the
borrowing base was expanded by $60 million, for a total borrowing base of
$250 million.
Third Quarter 2026 Financial & Operations Overview:
InPlay completed an active capital program during the third quarter, investing $22.3 million to drill and complete two (2.0 net) Cardium wells, drill four (3.7 net) Cardium wells and one (1.0 net) Belly River well. Drilling operations also began on an additional one (1.0 net) Belly River well which finished in the fourth quarter. Operational execution remained strong, with drilling and completion operations executed on budget despite periods of wet weather during the quarter.
Quarterly production averaged 19,254 boe/d(1) (62% light crude oil and NGLs), representing a 3% increase from the second quarter of 2026. Crude oil production remained strong averaging 9,565 bbl/d, a 5% increase from the third quarter of 2025.
