S&P Global Ratings has revised International Petroleum Corp.\u2019s (IPC) outlook to stable while affirming its \u2018B\u2019 rating and assigning a \u2018B+\u2019 rating to new debt.<\/p>\n
The agency said IPC\u2019s planned transaction will reduce refinancing risk. The company currently has $450 million in senior unsecured notes due February 2027 and an undrawn C$250 million revolving credit facility. After the transaction, IPC will have no debt maturing until 2030.<\/p>\n
S&P expects production to rise while capital spending falls in 2026 and 2027 after the Blackrod Phase 1 project. The project is expected to be 95% complete by the end of 2025, with first oil anticipated in late 2026. Production is projected to reach about 48,000 barrels of oil equivalent per day (boe\/d) in 2026, up from 44,000 boe\/d in 2025, and 60,000 boe\/d by 2027 when Blackrod reaches full capacity of 30,000 boe\/d.<\/p>\n
Capital expenditures are expected to drop from $320 million in 2025 to around $140 million in 2026. After two years of spending above cash flow, IPC is projected to generate positive free operating cash flow (FOCF) of about $55 million in 2026 and $125 million in 2027. S&P expects the company to use this cash for debt reduction and shareholder returns, including possible share repurchases of around $95 million in 2027.<\/p>\n
S&P also expects IPC\u2019s funds from operations to debt ratio to improve from roughly 23% in 2025 to 37% in 2027, while debt to EBITDA should strengthen from 3.6x to 2.2x.<\/p>\n
The stable outlook reflects S&P\u2019s view that IPC\u2019s credit profile and liquidity will improve over the forecast period, supported by the Blackrod project completion and the planned refinancing of its 2027 notes.<\/p>\n","protected":false},"excerpt":{"rendered":"
S&P Global Ratings has revised International Petroleum Corp.\u2019s (IPC) outlook to stable while affirming its \u2018B\u2019 rating and assigning a\u2026<\/p>\n","protected":false},"author":294,"featured_media":88703,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[73],"tags":[30813],"class_list":["post-88702","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-us-markets","tag-sp"],"reading_time":"2 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/88702","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/users\/294"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/comments?post=88702"}],"version-history":[{"count":0,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/88702\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media\/88703"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media?parent=88702"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/categories?post=88702"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/tags?post=88702"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}