Monthly Dividend Stock In Focus: InPlay Oil Corp.

Published on May 14th, 2026 by Josh Arnold

InPlay Oil (IPOOF) has two appealing investment characteristics:

#1: It is offering an above-average dividend yield of 6.4%, which is more than six times the average dividend yield of the S&P 500.

#2: It pays dividends monthly instead of quarterly.

Related: List of monthly dividend stocks

You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter like dividend yields and payout ratios) by clicking on the link below:

Monthly Dividend Stock In Focus: InPlay Oil Corp.

The combination of an above-average dividend yield and a monthly dividend makes InPlay Oil an attractive option for individual investors.

But there’s more to the company than just these factors. Keep reading this article to learn more about InPlay Oil.

Business Overview

InPlay Oil is an oil and gas exploration and production company focused on developing light oil and natural gas assets in Alberta, primarily targeting the Cardium and Belly River formations.

The company combines horizontal drilling, enhanced oil recovery, and infrastructure optimization to maximize efficiency and returns.

In 2025, InPlay Oil posted average production of just over 17,000 barrels of oil equivalent per day, with 61% of the output attributed to crude oil and natural gas liquids (NGLs). The company is the largest Cardium oil producer and is headquartered in Calgary, Canada.

As an oil and gas producer, InPlay Oil is extremely sensitive to the boom-and-bust cycles of the oil and gas industry. It has incurred losses in 4 of the last 10 years and has exhibited a markedly volatile performance record. To its credit, the last annual loss occurred in 2020 and hasn’t repeated since.

The company initiated a dividend only in late 2022.

On the other hand, InPlay Oil has some advantages compared to well-known oil producers. Most oil and gas producers have been struggling to replenish their reserves due to the natural decline of their producing wells.

Source: Investor Presentation

InPlay Oil is a top oil and gas producer in Cardium, which is the largest pool of light oil in Western Canada. The large scale in this highly prolific area creates economies of scale and bodes well for future production growth.

InPlay posted fourth quarter and full-year earnings on March 5th, 2026, and results were quite strong. Total revenue more than doubled year-over-year to $51.7 million, driven by continued integration of the Pembina asset acquisition, as well as record production volumes. Average production for the quarter was 19,589 BOE per day, up sharply from 9,376 BOE per day a year ago.

Adjusted funds flow was $22.4 million from $13.7 million a year earlier, with diluted AFF per-share was $3.40. For 2026, we see $3 on high oil and gas prices.

Growth Prospects

InPlay Oil has posted one of the highest reserve growth rates in its peer group over the last decade.

Source: Investor Presentation

Thanks to a strong record of profitable acquisitions, InPlay Oil has grown its production per share by enormously over the last decade and it has seen huge growth in its proven reserves through acquisitions.

On the other hand, as an oil and gas producer, InPlay Oil is vulnerable to the wild swings of the prices of oil and gas. The company posted record earnings per share in 2021 and 2022 thanks to the recovery of global oil consumption from the pandemic and the onset of the war in Ukraine, which led the prices of oil and gas to surge to a 13-year high in 2022.

In 2026, the war in Iran has prices elevated once more, hovering near $100 per barrel of oil.

We think InPlay has the ability to get near its record earnings of $3 per share or more, depending upon how long energy prices remain elevated.

InPlay Oil has a strong balance sheet, with its long-term debt-to-equity ratio well off its prior highs at just 0.22. Under normal business conditions, the company is not likely to have any problem servicing its debt, but we note operating income is extremely volatile from year to year.

On the other hand, in the event of a severe and prolonged downturn, InPlay Oil may face some financial pressure due to lower energy prices pushing revenue and profit margins materially lower. In a recession, we do not believe InPlay would hold up well at all.

Dividend & Valuation Analysis

InPlay Oil is currently offering an above-average dividend yield of 6.4%, which is more than six times the 1% yield of the S&P 500. The stock is an interesting candidate for income investors, but they should be aware that the dividend is far from safe due to the dramatic cycles of the prices of oil and gas.

InPlay Oil has a high payout ratio of 72%, which is sustainable only as long as oil and gas prices remain elevated. Nevertheless, thanks to its promising growth prospects, the company is not likely to cut its dividend sharply under the prevailing oil and gas prices.

In reference to the valuation, InPlay Oil is currently trading for just over 9 times its expected funds flow per share this year. Given the high cyclicality of the company, we assume a fair price-to-funds flow ratio of 9.0, which is a typical mid-cycle valuation level for oil producers.

Therefore, the current funds flow right near our assumed fair price-to-funds flow ratio. If the stock trades at its fair valuation level in five years, it will see a very small impact on total returns.

Taking into account the 5.0% annual growth of funds flow per share, the 6.4% current dividend yield, and almost no impact from the valuation, InPlay Oil could offer mid-single digit average annual total return over the next five years.

The expected return signals that the stock is a probably overpriced as a good long-term investment, particularly if oil and gas prices decline from currently high levels.

Final Thoughts

InPlay Oil has been thriving since 2021 thanks to an ideal environment of above-average oil prices. The stock is offering an above-average dividend yield, albeit with a high payout ratio of 70%+. Given its promising growth prospects and its reasonable valuation, the stock appears attractive.

On the other hand, the company has proven highly vulnerable to the cycles of the prices of oil and gas. As a result, it is suitable only for patient investors, who can endure high stock price volatility.

Moreover, InPlay Oil is characterized by low trading volume. This means that it is hard to establish or sell a large position in this stock. We note total return prospects have deteriorated in recent months as the stock has doubled in value over the past year.