Calgary, Alberta--(Newsfile Corp. - February 19, 2026) - OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) ("Obsidian Energy", the "Company", "we", "us" or "our") announces that it has filed with Canadian securities regulatory authorities its audited Consolidated Financial Statements for the year ended December 31, 2025 and related Management's Discussion and Analysis. Obsidian Energy has also filed its Annual Information Form for the year ended December 31, 2025, which includes the disclosure and repor ...

Obsidian Energy Ltd. Corporate Presentation February 2026 OVERVIEW Focused asset base with experienced team delivering value P E A C E R I V E R 13,741 boe/d Cold flow heavy oil V I K I N G 1,025 boe/d Light oil conventional development W I L L E S D E N G R E E N & P C U # 1 1 Q4 2025 27,971 boe/d 12,968 boe/d Light oil conventional development | Q4 2025 Production | 27,971 boe/d | | --- | --- | | Q4 2025 Annualized Funds Flow from Operations (FFO) | $226 million | | Q4 2025 Annualized Net Debt to FFO | 1. ...

Core Viewpoint - Obsidian Energy Ltd. has announced its 2026 capital plan and operational updates, focusing on the development of light and heavy oil assets, while maintaining a disciplined approach to capital expenditures amid commodity price volatility [1][2]. Capital Expenditure and Production Guidance - The 2026 capital budget is set between $190 million and $230 million, with average production guidance of 27,900 to 29,900 barrels of oil equivalent per day (boe/d), of which 73% is liquids [3][9]. - Capital expenditures are allocated as follows: $128 million for Willesden Green/Pembina Cardium Unit 11 and $80 million for heavy oil assets in Peace River, including $22 million for waterflood initiatives [3][5]. Pricing Assumptions and Financial Projections - The company assumes WTI prices of US$58.00 per barrel for the first half of 2026 and US$62.00 per barrel for the second half, with AECO natural gas priced at $2.75 per gigajoule [4][12]. - Based on these pricing levels, Obsidian anticipates generating approximately $225 million in funds flow from operations (FFO) and about $7 million in positive free cash flow (FCF) [4][9]. Operational Strategy and Development Plans - The development activities for 2026 will focus on both the Bluesky and Clearwater formations, with plans to drill 8 Clearwater waterflood injection wells and prioritize Clearwater injector projects in the first half of the year [6][10]. - In light oil, the company will continue development in Open Creek and Crimson areas, particularly in the Belly River formation, benefiting from new infrastructure completed in late 2025 [7][22]. Production and Cost Management - The production guidance for heavy oil is set at 12,700 boe/d, with 93% being oil and natural gas liquids, while light oil production is expected to average 16,200 boe/d, with 58% being oil and natural gas liquids [12][24]. - Net operating costs are projected to average between $14.00 and $15.00 per boe, with a focus on cost reduction initiatives across the portfolio [4][9]. Waterflood Initiatives and Infrastructure Development - The company plans to allocate $22 million for waterflood initiatives in Peace River, with expectations that these efforts will support approximately 35% of Clearwater production by the end of 2026 [10][19]. - The completion of the Open Creek infrastructure project is expected to enhance production capacity and efficiency in the Belly River and Cardium plays [22][19].

Core Viewpoint - Obsidian Energy has successfully closed a private placement offering of $175 million in senior unsecured notes due in 2030, while redeeming existing notes due in 2027, thereby restructuring its debt profile and improving financial flexibility [1][2]. Group 1: Financial Details - The company issued $175 million of 8.125% five-year senior unsecured notes due December 3, 2030, at par [1]. - A portion of the proceeds from the offering was used to redeem $80.8 million of 11.95% senior unsecured notes due July 27, 2027 [2]. - The remaining proceeds were allocated to pay down debt under a $235 million syndicated credit facility, which had approximately $8 million outstanding at closing [2]. Group 2: Underwriters and Regulatory Information - BMO Capital Markets and RBC Capital Markets acted as bookrunners for the offering [3]. - The 2030 Notes are not registered under U.S. securities laws and are offered only under applicable exemptions [3]. Group 3: Company Overview - Obsidian Energy is an intermediate-sized oil and gas producer with a diverse portfolio of high-quality assets primarily located in Alberta [5]. - The company focuses on exploring, developing, and holding interests in oil and natural gas properties within the Western Canada Sedimentary Basin [5].

Core Viewpoint - Obsidian Energy is conducting a private placement offering of $175 million in senior unsecured notes with an interest rate of 8.125%, maturing in 2030, to refinance existing debt and strengthen its balance sheet amid commodity price volatility [1][2][3] Group 1: Offering Details - The offering consists of $175 million aggregate principal amount of 8.125% senior unsecured notes due December 3, 2030 [1] - The notes will be issued at par and will rank equally with all other present and future senior unsecured indebtedness of the company [1] - Closing of the offering is expected around December 3, 2025, subject to customary closing conditions [1] Group 2: Use of Proceeds - Net proceeds from the offering will be used to redeem existing $80.8 million senior unsecured notes due July 27, 2027, pay down debt under the syndicated credit facility, and cover related transaction expenses [2] - Post-offering, the company's syndicated credit facility of $235 million will have approximately $5 million drawn [2] Group 3: Management Commentary - The President and CEO of Obsidian Energy highlighted the opportunity to refinance at a lower interest rate, which strengthens the balance sheet and provides flexibility for production growth and shareholder returns [3]

Core Insights - The article highlights the launch of a free two-week trial for the Distressed Value Investing group, which offers exclusive research and access to a portfolio of over 1,000 reports on more than 100 companies [1] Group 1 - The author, Aaron Chow, has over 15 years of analytical experience and is recognized as a top-rated analyst on TipRanks [2] - Chow co-founded a mobile gaming company, Absolute Games, which was acquired by PENN Entertainment, showcasing his experience in the gaming sector [2] - The Distressed Value Investing group focuses on value opportunities and distressed plays, particularly in the energy sector [2]

Financial Performance - Production revenues for Q3 2025 were $128.7 million, a decrease of 6% from $136.3 million in Q2 2025 and a decrease of 39% from $211.0 million in Q1 2025[5] - Cash flow from operating activities for Q3 2025 was $45.4 million, down from $55.2 million in Q2 2025 and $96.7 million in Q1 2025[5] - Funds flow from operations for Q3 2025 was $49.7 million, compared to $65.8 million in Q2 2025 and $100.1 million in Q1 2025, reflecting a significant decline[5] - Net income for Q3 2025 was $16.8 million, an increase from $15.3 million in Q2 2025 but a decrease from $15.4 million in Q1 2025[5] - Total sales for the nine months ended September 30, 2025, were $476.6 million, a decline of 21.2% from $605.0 million in the same period of 2024[35] - Gross revenues for the nine months ended September 30, 2025, were $476.8 million, down from $620.6 million in 2024, representing a decrease of 23.2%[39] - Net income for Q3 2025 was $16.8 million, down from $33.2 million in Q3 2024, with a basic per share of $0.25 compared to $0.44 in the prior year[67] Production and Operations - Total production for Q3 2025 was 27,316 boe/d, a decrease from 28,943 boe/d in Q2 2025 and 38,416 boe/d in Q1 2025[5] - Total production decreased by 31% year-over-year to 27,316 boe/d in Q3 2025, primarily due to the Pembina Disposition[27] - Heavy oil production increased by 18% year-over-year to 12,586 bbl/d in Q3 2025[27] - The company drilled 50 wells and brought 53 wells on production in the first nine months of 2025[28] - The company drilled 56 wells in the first nine months of 2025, including 53 oil wells, compared to 70 wells in the same period of 2024[70] - The average daily production of light oil in the Cardium area decreased to 4,411 bbl/d in Q3 2025 from 12,240 bbl/d in Q3 2024[94] Financial Metrics - The company's netback for Q3 2025 was $24.90 per boe, a decrease of 31.4% compared to $36.23 per boe in Q3 2024[31] - Capital expenditures in Q3 2025 totaled $65.3 million, down from $85.5 million in Q3 2024, with a focus on development activities in Peace River[68] - Net operating costs for Q3 2025 were $37.7 million, down 24.3% from $49.8 million in Q3 2024[44] - Financing expenses for Q3 2025 totaled $9.1 million, a decrease of 37.0% from $14.4 million in Q3 2024[49] - The average royalty rate remained stable at 13% for both 2025 and 2024 periods[42] - Share-based compensation charges in Q3 2025 amounted to $5.5 million, influenced by an increase in the company's share price during the quarter[10] Market Conditions - WTI oil prices averaged $64.93 per bbl in Q3 2025, slightly higher than $63.74 per bbl in Q2 2025[22] - WCS differentials averaged $10.38 per bbl in Q3 2025, consistent with $10.20 per bbl in Q2 2025[23] - Average sales price for light oil decreased by 13% year-over-year to $86.67 per bbl in Q3 2025[26] - Natural gas prices at AECO averaged $0.60/mcf in Q3 2025, down from $1.69/mcf in Q2 2025[24] - The average NYMEX Futures price for natural gas settled at $3.07 per mmbtu in Q3 2025, down from $3.44 per mmbtu in Q2 2025[24] Shareholder Actions - The company repurchased and canceled approximately 17.2 million common shares, representing about 21% of outstanding shares, for a total consideration of $143.9 million since the inception of the NCIB in 2023[17] - The company plans to renew its NCIB program in March 2026, following the completion of its current share repurchase program[17] - The company's share price increased to $9.07 per share on September 30, 2025, from $8.36 per share at the end of 2024[59] Risk Factors - The Company anticipates that regional and global health-related events may impact energy demand and commodity prices in the future[124] - The Company faces risks related to the continuation of current tariffs and potential new tariffs that could adversely affect the Canadian oil and natural gas industry[124] - The Company is exposed to risks from fluctuations in oil and natural gas prices, which could affect profitability and access to capital[125] - The Company acknowledges the potential impact of geopolitical events, such as the ongoing war between Russia and Ukraine, on global economies and demand for oil and natural gas[125] - The Company is at risk of production shut-ins due to extreme weather events, blockades, or other activism[125] - The Company may face challenges in obtaining financing on acceptable terms, which could affect its ability to execute business plans[125] Environmental and Operational Strategy - The company is focused on environmental remediation efforts, including abandoning and reclaiming inactive wells, which may require additional expenditures[120] - The company intends to monitor operations for environmental impacts and allocate capital to reclamation activities in its operational areas[120] - The company emphasizes that "free cash flow" is funds flow from operations less capital and decommissioning expenditures, indicating available funding for investments and debt repayment[100]

Group 1 - Obsidian Energy Ltd. (NYSE:OBE) is involved in the exploration, development, and production of oil and natural gas, with a diverse asset portfolio including light oil, heavy oil, and natural gas properties [1][2] - On September 8, 2023, Obsidian Energy announced significant progress in its second half 2025 program, having drilled 13 wells with early production exceeding expectations, contributing to record output in Peace River [2] - The company improved its financial position by selling InPlay Oil shares, redeeming $30 million in debt, and completing its share buyback plan, which reduced its year-end debt forecast to $213 million [2] Group 2 - BMO Capital maintained an Outperform rating for Obsidian Energy with a price target of C$10 following its guidance for the second half of the year [1] - Despite the positive developments, Jim Cramer expressed caution regarding smaller-cap energy companies like OBE, particularly in light of declining oil prices [1]

Group 1 - Obsidian Energy Ltd. has significantly reduced its net debt through the sale of its stake in InPlay Oil Corp [2] - The company has been repurchasing/redeeming its 11.95% unsecured debt [2] - The focus of the investment group Distressed Value Investing is on value opportunities and distressed plays, particularly in the energy sector [2]

Core Points - Obsidian Energy has completed a partial redemption of $30 million of its outstanding Senior Unsecured Notes, which have an interest rate of 11.95% and are due on July 27, 2027 [1][2] - Following the redemption, the company has $80.8 million of Notes remaining outstanding, with a maximum semi-annual free cash flow offer of $17.0 million required under the trust indenture governing the Notes [2] Company Overview - Obsidian Energy is an intermediate-sized oil and gas producer with a diversified portfolio of high-quality assets, primarily located in the Peace River, Willesden Green, and Viking areas of Alberta [3] - The company's operations focus on exploring, developing, and holding interests in oil and natural gas properties, along with related production infrastructure in the Western Canada Sedimentary Basin [3] - The company's shares are listed on both the Toronto Stock Exchange and the NYSE American under the symbol "OBE" [4]