Canadian oil producer International Petroleum said Blackrod Phase 1 reached first oil in May 2026 ahead of schedule and on budget, while it maintained 2026 production guidance of 44,000 to 47,000 boepd.
International Petroleum Corporation reported second-quarter 2026 operating cash flow of $67 million and free cash flow of $4 million as its Blackrod Phase 1 oil sands project in Canada began production in May 2026 ahead of schedule and on budget. Average net production was about 42,200 boepd, in line with guidance, and the company kept full-year production guidance at 44,000 to 47,000 boepd and operating cost guidance at $18 to $20 per boe. IPC revised 2026 operating cash flow guidance to $230 million to $330 million from $220 million to $340 million and free cash flow guidance to $10 million to $110 million from $0 million to $120 million, both based on Brent at $70 to $90 a barrel for the rest of 2026, while maintaining capital and decommissioning spending guidance at $163 million. The company also expanded its Canadian revolving credit facility to C$348.5 million and extended maturity to May 2028. IPC said stronger oil prices, supply disruption linked to geopolitical tensions and the roll-off of its WTI and Brent hedges leave it fully exposed to benchmark oil prices in the second half of 2026 and beyond, while more meaningful Blackrod production and sales volumes are expected in the fourth quarter.