We are currently offering a free two-week trial to Distressed Value Investing . Join our community to receive exclusive research about various companies and other opportunities, along with full access to my portfolio of historic research that now includes over 1,000 reports on over 100 companies.Obsidian Energy (NYSE: OBE ) (TSX: OBE:CA ) withdrew its three-year growth plan (it was aiming to grow production to 50,000 BOEPD by 2026) due to its Pembina asset sale. It closed on that divestiture on April 7 andA ...

Core Insights - Obsidian Energy has successfully completed its first half 2025 capital program, achieving a new production high of 14,000 boe/d in the Peace River asset [4][5][6] - The company is focusing on enhanced oil recovery techniques and has initiated a Clearwater waterflood pilot project in the Dawson field, which is expected to increase reservoir recovery [7][8] - The macro-economic environment remains uncertain, prompting the company to adjust its capital allocation decisions for the second half of 2025 [2] Production Highlights - All 30 wells in the first half program were rig released by the end of May 2025, with all development wells now on production [1] - The Dawson Clearwater program has exceeded expectations, with all five waterflood pilot wells online [2] - Initial production rates from the Dawson field have significantly increased from 189 boe/d in Q4 2023 to over 3,000 boe/d in May 2025 [6] Development Program - The development drilling in the established fields of Harmon Valley South and Dawson has yielded strong production results [2][3] - The HVS field has seen successful results from the "waffle well" drilling design, enhancing initial production performance [6] - The company has identified follow-up locations for further drilling based on successful initial production rates from various pads [6] Waterflood Pilot Project - The Clearwater waterflood pilot project aims to test the potential for increased reservoir oil recovery in the Dawson field [7] - Successful execution of this project could lead to broader implementation of enhanced oil recovery techniques across Peace River assets [8] Light Oil Assets - Obsidian Energy participated in five non-operated wells at the Pembina Cardium Unit 11, achieving an average 30-day IP rate of 223 boe/d per well [9] - The wells were initially rate restricted due to gas takeaway capacity, with peak production rates ranging from 335 to 360 boe/d [9] Hedging Update - The company has added new oil and gas contracts to mitigate risks associated with potentially lower commodity prices [10] - Current oil contracts include WTI swaps and collars with varying volumes and prices, aimed at stabilizing revenue [10][12] Upcoming Events - Obsidian Energy will participate in the RBC Global Energy, Power and Infrastructure Conference on June 3-4, 2025, with a presentation by the President and CEO [14]

Core Points - Obsidian Energy's shareholders approved all resolutions at the 2025 Annual and Special Meeting held on May 7, 2025 [1] Group 1: Appointment of Auditor - KPMG LLP was appointed as the auditor for the Company for the upcoming year [2] Group 2: Election of Directors - Seven nominees proposed by management were elected as directors, with the following vote percentages: - Shani Bosman: 84.0% votes for [3] - John Brydson: 87.2% votes for [3] - Raymond D. Crossley: 92.4% votes for [3] - Michael J. Faust: 87.9% votes for [3] - Edward H. Kernaghan: 87.6% votes for [3] - Stephen Loukas: 93.6% votes for [3] - Gordon Ritchie: 94.3% votes for [3] Group 3: Executive Compensation Vote - An advisory resolution to approve the Company's approach to executive compensation received 80.2% votes for and 19.8% votes against [4] Group 4: Corporate Presentation and Webcast - The management team provided a corporate update and Q&A session through a live webcast, with the updated corporate presentation available on the Company's website [6]

Core Points - Obsidian Energy is set to release its first quarter 2025 financial and operational results on May 7, 2025, before North American markets open [1] - The Annual and Special Meeting of the Company is scheduled for the same day, May 7, 2025, at 1:00 p.m. MT [2] - A webcast presentation will follow the meeting at 2:00 p.m. MT, hosted by the President and CEO, Stephen Loukas, along with other management members [3] Meeting and Presentation Details - Access to the Annual and Special Meeting will be limited to essential personnel, registered shareholders, proxyholders, and invited guests [2] - The webcast presentation will be available live on the Company's website and will include a question-and-answer session afterward [4] - Participants can submit questions in advance by registering on the webcast portal or emailing investor relations [4]

We are currently offering a free two-week trial to Distressed Value Investing . Join our community to receive exclusive research about various companies and other opportunities, along with full access to my portfolio of historic research that now includes over 1,000 reports on over 100 companies.Obsidian Energy (NYSE: OBE ) received a fair price for its sale of operated Pembina assets to InPlay Oil for CAD 320 million ($229 million). Over 65% of the deal price was in cash, and this allowed Obsidian to nearl ...

Group 1 - The article focuses on analyzing oil and gas companies, particularly Obsidian Energy, to identify undervalued opportunities in the sector [1] - Obsidian Energy has faced long-standing debt issues, but has recently used improved debt levels to acquire the remaining interest in a heavy oil project [2] - The oil and gas industry is characterized as a boom-bust, cyclical market, requiring patience and experience for successful investment [2] Group 2 - The analysis includes a breakdown of companies' balance sheets, competitive positions, and development prospects [1] - The author has a beneficial long position in the shares of IPOOD, indicating a personal investment interest [3]

Core Viewpoint - Obsidian Energy has successfully completed the divestiture of its operated Pembina assets to InPlay Oil Corp for approximately $320 million, which will enhance the company's financial position and allow for debt reduction [2][3][4]. Group 1: Transaction Details - The total consideration for the Pembina assets includes $220 million in cash, $85 million in InPlay common shares, and a 34.6% working interest in the Willesden Green Cardium Unit 2, valued at approximately $15 million [3][5]. - The effective date of the transaction is December 1, 2024, and Obsidian Energy retains its non-operated holdings in the Pembina Cardium Unit 11 [2][3]. Group 2: Financial Impact - The cash proceeds from the transaction were utilized to pay down debt, leaving approximately $30 million drawn on a reduced $235 million syndicated credit facility [4]. - The completion of the transaction has led to an extension of the revolving period and maturity dates of the credit facility by one year, now set to May 31, 2026, and May 31, 2027, respectively [4]. Group 3: Strategic Positioning - The transaction allows Obsidian Energy to focus on growing its Peace River asset and positions the company to benefit from potential future appreciation in the value of its InPlay share position [3][4]. - Following the transaction, Obsidian Energy owns approximately 33% of the issued and outstanding InPlay shares, totaling 54,838,709 shares [5][6].

Core Viewpoint - Obsidian Energy announced an update regarding its offer to purchase up to $3.0 million of its outstanding Senior Unsecured Notes, which expired on March 11, 2025, with no valid tenders received [1][2]. Group 1: Offer Details - The offer was made to purchase cash for an aggregate amount of $3.0 million of outstanding 11.95 percent Senior Unsecured Notes due July 27, 2027 [1]. - The offer was subject to the terms and conditions outlined in the Offer to Purchase dated February 26, 2025 [1]. Group 2: Tender Results - No Notes were validly tendered before the deadline of 5:00 p.m. EDT on March 11, 2025 [2]. - The company currently has an aggregate principal amount of $114.2 million of Notes outstanding [2]. Group 3: Corporate Information - Obsidian Energy shares are listed on both the Toronto Stock Exchange and the NYSE American under the symbol "OBE" [4].

Core Points - Obsidian Energy has filed its audited Consolidated Financial Statements for the year ended December 31, 2024, along with the related Management's Discussion and Analysis (MD&A) [1] - The company has also submitted its Annual Information Form for the year ended December 31, 2024, which includes reserves data and other oil and gas information as required by National Instrument 51-101 [1] - The Annual Report on Form 40-F for the year ended December 31, 2024, will be filed with the U.S. Securities and Exchange Commission [1] Document Access - Copies of the filed documents can be obtained electronically on the SEDAR+ website, EDGAR website, or Obsidian Energy's website [2] - Hard copies of the audited Consolidated Financial Statements and related MD&A are available upon request, free of charge, through the Investor Relations group or the company's website [2]

Production and Reserves - Average annual production increased by 16% to 37,474 boe/d in 2024, surpassing previous guidance[6] - Reserves increased significantly, with 148% of 2024 production replaced on a proved developed producing basis[11] - The Peace River Clearwater Acquisition added approximately 1,700 boe/d of production and 6.3 Mmboe of 2P reserves[16] - The company completed 66 operated wells in 2024, with 65 wells brought on production by year-end[24] Financial Performance - Funds Flow from Operations (FFO) rose 14% to $432.0 million in 2024, with fourth quarter FFO at $107.7 million[9] - The company recorded a net loss of $202.6 million in 2024, attributed to a non-cash impairment charge related to the Pembina assets[10] - Free cash flow (FCF) for 2024 was $65 million, slightly below the guidance of $69 million, with FCF per share at $0.86[1] - Cash flow from operating activities for Q4 2024 was $115.0 million, a decrease of 2.3% from $117.7 million in Q4 2023[47] - Funds flow from operations increased to $107.7 million in Q4 2024, up 10.7% from $97.0 million in Q4 2023[47] - Free cash flow for the year ended December 31, 2024, was $65.0 million, compared to $58.5 million in 2023, reflecting a 11.4% increase[47] - Netback for the year ended December 31, 2024, was $486.7 million, an increase of 12.1% from $434.3 million in 2023[48] Capital Expenditures and Debt - Capital expenditures totaled $343.1 million in 2024, up from $292.5 million in 2023, focusing on production growth in the Peace River area[9] - Net debt increased to $411.7 million at December 31, 2024, primarily due to the $80.5 million funding of the Peace River Clearwater Acquisition[10] - Capital expenditures for 2024 were guided at $320 – $335 million, with actual expenditures totaling $343.1 million[1] - Net debt increased to $412 million, compared to the guidance of $390 million, resulting in a net debt to FFO ratio of 1.0[1] - Total net debt as of December 31, 2024, was $411.7 million, up from $330.2 million in 2023, indicating a 24.6% increase[50] Shareholder Actions - The company repurchased 4.5 million shares for $41.7 million under its normal course issuer bid in 2024[7] - The company announced a definitive agreement to divest its Pembina assets for approximately $320 million, aimed at improving its balance sheet[16] Market Engagement and Future Plans - The company plans to participate in the Scotiabank Global Energy Conference in February 2025, indicating ongoing market engagement[30] - The company anticipates drilling activities in the second half of 2025, aiming to enhance production capabilities[53] - The company plans to evaluate opportunities to realize additional value from InPlay Shares obtained from a recent transaction[53] Risks and Uncertainties - The Company emphasizes that forward-looking statements involve numerous assumptions and risks, and actual performance may differ materially from expectations[55] - The Company is exposed to risks related to potential tariffs and trade restrictions between the U.S. and Canada, particularly affecting oil and natural gas imports[55] - The Company faces uncertainties in estimating oil and natural gas reserves and competition for capital and skilled personnel[55] - The Company may not achieve anticipated benefits from potential transactions, and its future capital requirements remain uncertain[56] - The Company’s 2024E net debt post-Transaction may exceed expectations, impacting financial results[56] - The Company is subject to fluctuations in commodity prices, which can adversely affect its operations and financial performance[56] - The Company’s ability to execute business plans may be hindered by economic and political conditions in Canada, the U.S., and globally[56] - The Company’s financial covenants with lenders may be at risk of breach, affecting its credit facilities[56] - The Company’s operations may be impacted by environmental events and extreme weather conditions, leading to production delays[56] Pricing and Costs - Average sales price for Q4 2024 was $213.8 million, up 23.1% from $173.6 million in Q4 2023[48] - Net operating costs for Q4 2024 were $51.2 million, compared to $40.2 million in Q4 2023, representing a 27.5% increase[49] - General and administrative costs decreased by 7% to $1.50 per boe in 2024, benefiting from a higher production base[10] Hedging and Future Contracts - An active hedging program resulted in a realized gain of $21.6 million, primarily from natural gas contracts[27] - Future oil contracts for 2025 include WTI swaps with volumes ranging from 500 to 14,250 bbl/d at prices between $100.46 and $106.37 per bbl[27] Stock Exchange Listing - The Company’s shares are listed on both the Toronto Stock Exchange and NYSE American under the symbol "OBE"[58]