Is Inplay Oil (IPO) the next big energy stock for Canadian investors?

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Is Inplay Oil (IPO) the next big energy stock for Canadian investors?

InPlay Oil Stock
Image source: © Pichitbo | Megapixl.com
Highlights:
  • During the trading session on January 12, stocks of Inplay Oil Corp. (TSX:IPO) jumped about 21 per cent.
  • Seeing the Inplay Oil stock performance, it can be said that investors must have made huge gains.
  • In the past year, the Inplay Oil stock returned 676 per cent to the shareholders and about 127 per cent in the last six months.

When it comes to oil and gas stocks, the Canadian equities market has plenty of options for investors. The energy stocks seem to be set for huge growth as the overall sector performs well.

Since the beginning of this year, the S&P/TSX Capped Energy Index has surged 13.6 per cent, and on Wednesday, January 12, it was up 1.4 per cent.

Oil demand and prices had declined sharply in 2020 when the COVID-19 pandemic had forced the governments to shut down commerce. However, crude oil prices recovered in 2021 and are expected to remain strong this year.

Also Read: TSX up on base metals & energy as oil prices climb higher, loonie gains

During the trading session on January 12, stocks of Inplay Oil Corp. (TSX:IPO) jumped about 21 per cent and closed the day at C$ 2.95 per share.

Can Inplay Oil (TSX:IPO) become the next big energy stock?

Seeing the Inplay Oil’s stock performance, it can be said that investors must have made huge gains if they had invested in the stock in 2020 and 2021.

InPlay Oil Stock                                                                                                    ©2022 Kalkine Media® 

In the past year, the Inplay Oil stock returned 676 per cent to the shareholders and about 127 per cent in the last six months.

On January 12, the IPO stock clocked a 52-week high of C$ 3 per share. Inplay Oil stock has outperformed the TSX 300 Composite Index year-to-date by surging 35.3 per cent compared to the index's 34.2 per cent growth.

The surge in the stock price was due to the announcement on Wednesday that the company's Board of Directors had approved a C$ 58 million capital program for this year.

In 2022, Inplay Oil expects that the capital program will help the company deliver 8,900 to 9,400 barrels of oil equivalent per day.

The company estimates that its adjusted fund flow will be between C$ 111 to C$ 117 million, around 118 to 129 per cent higher on an absolute basis compared with the previous year's guidance.

Bottom line

Previously, Inplay Oil has displayed strong financial performance, and in Q3 2021, the company generated a record adjusted fund flow of C$ 15.6 million, reflecting a 675 per cent year-over-year (YoY) increase.

Inplay Oil also reduced its operating expenses to C$ 12.23 per barrel of oil equivalent in Q3 2021 from C$ 14.42 in Q3 2020.

Also Read: Suncor (TSX:SU) & TC Energy (TSX:TRP): 2 oil & gas stocks to buy now

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