Could Bullish 18.5%-Yielding InPlay Oil Corp Stock Jump 73%?
September 23, 2025
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There is a huge number of excellent high-dividend-yielding U.S. energy stocks. There’s also a large number of ultra-high-yielding Canadian oil and gas stocks. And the U.S. can’t really live without Canadian crude.
And that’s one reason why President Donald Trump only slapped Canadian energy with a 10% duty. The lower tariff on Canadian oil and gas is an indication of just how intertwined the two countries’ energy needs are. (Source: “Trump’s Canada oil tariff speaks of US vulnerability,” Reuters, March 6, 2025.)
Canada is the world’s fourth largest crude producer, with 90% of all exports sent directly to the U.S. Canada is also responsible for half of U.S. oil imports, supplying four million barrels per day.
Most Canadian oil and gas is shipped to the U.S. through pipelines from the country’s massive oil sands in the western province of Alberta. Of note, the oil and gas are sent to refiners in the U.S. Midwest, which rely on Canadian crude for approximately 70% of their supplies.
They’re also configured to process the specific kind of oil that comes from Canada, so these refineries cannot easily replace Canadian oil and gas. This is one reason why 10% tariffs aren’t expected to result in any disruptions or big price hikes. Of course, 20% tariffs on imports from Mexican energy are a different matter.
One great small-cap, high-dividend-yielding Canadian oil and gas exploration and production (E&P) stock that energy bulls might want to keep a close eye on is InPlay Oil Corp (OTCMKTS:IPOOF).
About the Company
InPlay Oil Corp is a Calgary-Alberta-based oil and gas E&P company focused on large oil-in-place pools with low recovery, low declines, and long-life reserves primarily in the Cardium Formation in Alberta. (Source: “Corporate Presentation, August 2025,” InPlay Oil Corp, last accessed September 9, 2025.)
The Cardium Formation is a prolific oil and gas reservoir that holds the massive Pembina oil field. The field covers more than 900 square miles, ranking it second only to the Ghawar field in Saudi Arabia. According to the most recent data, the Cardium formation holds about 10.4 billion barrels of oil.
InPlay is actually the largest Cardium oil producer. And it recently got a lot bigger. In April, it closed on the transformational acquisition of Cardium light oil assets in the Pembina area from Obsidian Energy Ltd. for CAD$309.0 million. (Source: “InPlay Oil Corp. Announces Transformative Acquisition of Highly Accretive, Low Decline Pembina Cardium Oil Assets,” InPlay Oil Corp, February 19, 2025.)
The acquisition covers 471,495 gross acres; 100% of that is on government (Crown) land with low royalty burdens. The acquired assets add 138 booked locations that rank within existing InPlay inventory, lifting the company’s drilling inventory to over 400 locations.
With the acquired assets InPlay increased its:
- Market cap by 52%
- 2025 production by 111%, which is ~18,750 barrels of oil equivalent per day (BOE/D)
- 2025 light oil weighting by 28%
- 2025 liquids weighting by 13%
Moreover, the company reduced its decline rate by two percent.
The acquisition is 40% accretive on estimated 2025 adjusted funds flow per share and 65% accretive on free adjusted funds flow per share.
InPlay Oil Corp’s Q2 Production Tops Expectations
InPlay is off to a very strong start with second-quarter production exceeding guidance by approximately 1,000 BOE/D. This outperformance was fueled by base production performing above expectations and seven wells brought onstream in March that have been significantly outperforming historical trends.(Source: “InPlay Oil Corp. Announces Second Quarter 2025 Financial and Operating Results and Provides Operations Update,” InPlay Oil Corp, August 14, 2025.)
For those who like baseball statistics, three wells brought onstream in March ranked among the top 10 Cardium producers in April, with two of them holding the number one and two spots in April and May, and ranking second and third in June.
Thanks to this outperformance, InPlay’s current production remains at 19,400 BOE/D even though no new wells have been brought on since March. Management now expects 2025 average production to be at the upper end of its guidance range.
That doesn’t mean InPlay isn’t going to bring new wells into play. Its second-half drilling campaign kicked off in August, with three wells in close proximity to the company’s top-producing Cardium wells, which are expected to be in production near the beginning of October.
On the numbers front, (all figures are in Canadian dollars), in the second quarter, InPlay’s revenue more than doubled to $91.6 million. During the quarter, its average quarterly production increased by 125% on a sequential basis to 20,401 BOE/D.
The company generated strong quarterly adjusted funds flow of $40.1 million, or $1.49 per share, and reported significant free adjusted funds flow of $35.5 million, or $1.32 per share. This allowed InPlay to cut its net debt by approximately $26.0 million.
Operating income, meanwhile, jumped 140% on a sequential basis to $50.5 million.
September Dividend of $0.09/Share Declared
During the second quarter, InPlay returned $7.9 million to shareholders through its monthly dividends. Since November 2022, the company has paid out $52.0 million in dividends to shareholders.
In early September, its board declared a monthly dividend of $0.09 per share, or $1.08 per share on an annual basis, for a forward dividend yield of 18.5%.
IPOOF Stock Has 70%+ Upside Potential
Passive income investors love a reliable dividend. They also like to see that high-yield dividend tied to a stock that is doing well. And IPOOF stock is doing just that. As of September 9, IPOOF is up:
- 13% over the last month
- 33% over the last three months
- 45% over the last six months
- 37% year to date
- 16% year over year
Impressive gains, but Wall Street sees much bigger gains ahead for IPOOF, with analysts providing a 12-month share price target of $15.01. This points to potential upside of 73%.
Chart courtesy of StockCharts.com
The Lowdown on InPlay Oil Corp
InPlay Oil Corp is a great Canadian energy stock with a significant presence in the Cardium formation in Alberta. The company recently completed a blockbuster acquisition that will see it increase its drilling inventory to over 400 locations and juice its 2025 production by more than 110%.
Thanks to its strong balance sheet, InPlay is able to weather commodity volatility and develop its huge inventory of horizontal drilling locations. This also allows it to provide investors with a reliable monthly dividend through various commodity price cycles.
