International Petroleum Corporation 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. asserted

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. uncertain

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. asserted

IPC benefited from exposure to strong benchmark oil prices in the third quarter, with robust operating cash flows ahead of forecast. asserted

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. asserted

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. asserted

” 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). - uncertain

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. asserted

- 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. asserted

- 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. asserted

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. asserted

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. asserted

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. asserted

The crude oil market remains tight and supported by geopolitical concerns over energy security. asserted

IPC retains full exposure to West Texas Intermediate (WTI) and Brent oil price upside with no hedges in place for these benchmark prices. asserted

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. asserted

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. asserted

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. asserted

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. asserted

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. asserted

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. asserted

These strategic moves show international optimism on the strength and stability of the Canadian gas market which could benefit future Canadian gas prices. uncertain

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. asserted

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. asserted

The producing assets in Canada, Malaysia and France benefited from increased activity and strong oil commodity prices. asserted

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. asserted

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. asserted

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. asserted

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. asserted

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. asserted

As production continues to grow in Q4 2026 and into 2027, IPC is strongly positioned for increased FCF generation. asserted

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. asserted

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. asserted

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. uncertain

IPC also previously announced the refinancing of its USD 450 million of unsecured bonds, with maturity in October 2030. asserted

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. asserted

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. asserted

Under the 2025/2026 NCIB, IPC repurchased and cancelled approximately 1.1 million common shares during the third quarter of 2026. asserted

The average price of common shares repurchased under the 2025/2026 NCIB during the third quarter was around SEK 234 / CAD 34 per share. asserted

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. asserted