Core Viewpoint - Obsidian Energy has announced a partial redemption of $30 million of its outstanding Senior Unsecured Notes, reflecting a strong balance sheet and liquidity position, which will help reduce future interest expenses [1][2]. Group 1: Redemption Details - The redemption date is set for August 29, 2025, with a redemption price of $1,029.88 per $1,000 principal amount of the redeemed Notes, equating to 102.988 percent of the principal amount, plus accrued interest [2]. - After the redemption, Obsidian Energy will have $80.8 million of Notes outstanding, and the maximum semi-annual free cash flow offer required under the trust indenture will be $17.0 million [2]. Group 2: Company Overview - Obsidian Energy is an intermediate-sized oil and gas producer with a diverse portfolio of high-quality assets, primarily located in Alberta's Peace River, Willesden Green, and Viking areas [5]. - The company focuses on exploring, developing, and holding interests in oil and natural gas properties and related production infrastructure within the Western Canada Sedimentary Basin [5][6].

Obsidian Energy Ltd. Corporate Presentation July 2025 TSX:/NYSE American: OBE O V E R V I E W ADVISORY This presentation should be read in conjunction with the Company's unaudited interim consolidated financial statements and MD&A for the three and six months ended June 30, 2025. All dollar amounts contained in this presentation are expressed in millions of Canadian dollars unless otherwise indicated. Certain financial measures included in this presentation do not have a standardized meaning prescribed by I ...

Throughout this MD&A and in other materials disclosed by the Company, we adhere to generally accepted accounting principles ("GAAP"), however the Company also employs certain non-GAAP measures to analyze financial performance, financial position, and cash flow, including funds flow from operations, netback, sales, gross revenues, net operating costs, net debt and free cash flow. Additionally, other financial measures are also used to analyze performance. These non-GAAP and other financial measures do not ha ...

Industry Overview - The Zacks Oil and Gas - Exploration and Production - Canadian industry is facing challenges due to weaker commodity prices and a stronger Canadian dollar, which are eroding margins and cash flows [1][3] - Dividend growth and share buybacks are becoming unsustainable for many companies under current strip prices, leading to tighter capital spending [1][4] - The long-term impact of electric vehicle (EV) adoption and climate policies is contributing to a cautious outlook for the industry [1][6] LNG Breakthrough - Canada's first shipment of LNG to Asia marks a significant milestone, opening access to premium markets and reducing the natural gas discount [1][5] - The LNG Canada project, valued at $40 billion, is expected to ramp up exports to 14 million tonnes per annum (mtpa) and potentially double output in Phase 2, which will strengthen Canadian natural gas prices [5] Key Companies - **ARC Resources Ltd. (AETUF)**: The largest pure-play Montney operator in Canada, focusing on cost leadership and LNG market opportunities. It aims to triple free funds flow per share by 2028 and has a Zacks Consensus Estimate indicating 11% year-over-year earnings growth for 2025 [22][23] - **Ovintiv Inc. (OVV)**: A leading independent E&P company with a diverse portfolio. It has maintained a disciplined cost reduction approach and benefits from a proactive hedging program, with a trailing four-quarter earnings surprise of approximately 27.8% [27][28] - **Obsidian Energy Ltd. (OBE)**: Focused on oil-weighted assets, aiming to increase production from 34,000 boe/d to 50,000 boe/d by 2026. The company has a Zacks Consensus Estimate indicating 199.5% year-over-year earnings growth for 2025 [31][32] - **InPlay Oil Corp. (IPOOF)**: A junior upstream company with a focus on light oil development, expected to exceed production of 18,750 boe/d in the second half of the year. It prioritizes sustainability and shareholder returns [18][19] Market Performance - The Zacks Oil and Gas - Canadian E&P industry has underperformed compared to the S&P 500 and the broader Zacks Oil – Energy sector, declining 9.4% over the past year [11] - The industry's Zacks Industry Rank is 165, placing it in the bottom 33% of 245 Zacks industries, indicating challenging near-term prospects [7][8] Valuation Metrics - The industry is currently trading at a trailing 12-month EV/EBITDA ratio of 4.76, significantly lower than the S&P 500's 17.98 and slightly below the sector's 4.84 [15]

Core Viewpoint - Obsidian Energy has received a non-binding offer from a third party to acquire its entire common share position in InPlay Oil Corp, which consists of approximately 9,139,784 shares, representing about 32.7% of InPlay's outstanding shares, at a price exceeding the closing price on July 15, 2025 [1][2]. Group 1: Transaction Details - The negotiations regarding the potential acquisition (Disposition Transaction) are ongoing, and Obsidian Energy has agreed to engage exclusively with the third party until August 1, 2025 [1][2]. - The company will not proceed with its previously announced exchange offer to purchase approximately $10 million of its common shares from shareholders in Canada during this exclusivity period [1]. Group 2: Company Overview - Obsidian Energy is an intermediate-sized oil and gas producer with a diverse portfolio of high-quality assets primarily located in Alberta's Peace River, Willesden Green, and Viking areas [4]. - The company focuses on exploring, developing, and holding interests in oil and natural gas properties and related production infrastructure within the Western Canada Sedimentary Basin [4]. Group 3: Market Position - Obsidian Energy is listed on both the Toronto Stock Exchange and NYSE American under the symbol "OBE" [5][13].

Core Viewpoint - Obsidian Energy has announced its capital program and financial guidance for the second half of 2025, focusing on production growth and strategic investments following the recent asset disposition and market conditions [1][2]. Capital Expenditures and Production Guidance - The company plans to allocate between $110 million and $120 million for capital expenditures, along with an additional $13 million to $15 million for decommissioning expenditures in the second half of 2025 [3][4]. - Average production is expected to remain roughly flat at approximately 27,700 barrels of oil equivalent per day (boe/d) in the second half of 2025, with a target exit rate of around 29,000 boe/d by year-end [6][8]. Operational Focus - The capital expenditures will be divided with approximately $62 million dedicated to Peace River and $52 million to Willesden Green, with a total of 28 net operated wells planned for drilling [4][14]. - Key development areas include Harmon Valley South and Dawson in Peace River, with a focus on the Clearwater and Bluesky formations [16][17]. Financial Metrics - The company anticipates funds flow from operations (FFO) of approximately $113 million, with a net debt to FFO ratio of about 1.3 times [8][9]. - Net operating costs are projected to be between $13.45 and $14.35 per boe, while general and administrative costs are expected to be between $2.00 and $2.10 per boe [9][10]. Shareholder Engagement - Obsidian Energy intends to launch a share exchange offer to acquire up to $10 million of its common shares in exchange for shares of InPlay Oil Corp, which the company holds a significant stake in [21][22]. - This exchange offer is part of a strategy to enhance liquidity and shareholder value while managing capital expenditures [2][21]. Market Conditions and Pricing Assumptions - The guidance assumes commodity prices of $65.00 per barrel for WTI, $3.50 per barrel for MSW differential, $11.50 per barrel for WCS differential, and $2.50 per GJ for AECO natural gas [8][9]. - The company has implemented hedging strategies to mitigate the impact of commodity price volatility [19].

Group 1 - Obsidian Energy has withdrawn its three-year growth plan, which aimed to increase production to 50,000 BOEPD by 2026, due to the sale of its Pembina asset [1] - The divestiture of the Pembina asset was completed on April 7 [1] - The article mentions Aaron Chow, a top-rated analyst with over 15 years of experience, who co-founded a mobile gaming company and has expertise in analytical and modeling skills [1] Group 2 - The investing group Distressed Value Investing focuses on value opportunities and distressed plays, particularly in the energy sector [1]

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]

[Credit Agreement Overview](index=1&type=section&id=Credit%20Agreement%20Overview) This section provides an overview of the Amended and Restated Credit Agreement, detailing the parties involved and the structure of the Cdn.$235,000,000 credit facility [Parties and Facility Details](index=1&type=section&id=Parties%20and%20Facility%20Details) This section details the Amended and Restated Credit Agreement for Obsidian Energy Ltd., outlining the Cdn.$235,000,000 credit facility and key parties - The agreement amends and restates a prior credit agreement, providing credit facilities totaling **Cdn.$235,000,000**[1](index=1&type=chunk)[12](index=12&type=chunk) Credit Facility Breakdown | Facility Type | Commitment (Cdn) | | :--- | :--- | | Syndicated Facility | $210,000,000 | | Operating Facility | $25,000,000 | | **Total** | **$235,000,000** | - The primary parties to the agreement are Obsidian Energy Ltd. as the Borrower, a syndicate of Lenders including Royal Bank of Canada, Bank of Montreal, and ICBC Standard Bank PLC, and Royal Bank of Canada as the Agent[9](index=9&type=chunk)[11](index=11&type=chunk) [ARTICLE 1 INTERPRETATION](index=7&type=section&id=ARTICLE%201%20INTERPRETATION) This article establishes the foundational definitions and interpretive rules for the credit agreement, ensuring consistent understanding of its terms [Definitions](index=7&type=section&id=1.1%20Definitions) This section provides comprehensive definitions for all capitalized terms, including credit facilities, financial ratios, and the Borrowing Base - The agreement defines two main credit facilities: a **Cdn.$210,000,000** Syndicated Facility and a **Cdn.$25,000,000** Operating Facility[232](index=232&type=chunk)[301](index=301&type=chunk) - The "Borrowing Base" is defined as the lending value of the Borrower's proved, developed, producing reserves in Canada, as determined by the Lenders. This value serves as the ultimate cap on outstanding loans[62](index=62&type=chunk) - The "Syndicated Facility Term Out Date" and "Operating Facility Term Out Date" are both set for **May 31, 2026**, after which the facilities cease to be revolving. The final "Maturity Date" for repayment is **one year after the respective Term Out Date**[236](index=236&type=chunk)[305](index=305&type=chunk) Applicable Pricing Rate Grid (Margin over Benchmark) | Consolidated Senior Debt to EBITDA Ratio | Margin on Canadian Prime & U.S. Base Rate Loans | Margin on SOFR & CORRA Loans | Standby Fee | | :--- | :--- | :--- | :--- | | < 0.50:1.00 | [Redacted – Percentage] | [Redacted – Percentage] | [Redacted – Percentage] | | 0.50 to < 1.00:1.00 | [Redacted – Percentage] | [Redacted – Percentage] | [Redacted – Percentage] | | 1.00 to < 1.50:1.00 | [Redacted – Percentage] | [Redacted – Percentage] | [Redacted – Percentage] | | 1.50 to < 2.00:1.00 | [Redacted – Percentage] | [Redacted – Percentage] | [Redacted – Percentage] | | 2.00 to < 2.50:1.00 | [Redacted – Percentage] | [Redacted – Percentage] | [Redacted – Percentage] | | 2.50 to < 3.00:1.00 | [Redacted – Percentage] | [Redacted – Percentage] | [Redacted – Percentage] | | ≥ 3.00:1.00 | [Redacted – Percentage] | [Redacted – Percentage] | [Redacted – Percentage] | [Other Interpretive Provisions](index=57&type=section&id=1.2-1.11%20Other%20Interpretive%20Provisions) This subsection outlines general rules for interpreting the agreement, including accounting principles, benchmark rate changes, and prior agreement restatement - All accounting terms and calculations are to be made in accordance with Generally Accepted Accounting Principles (GAAP) in Canada, applied on a consistent basis. The agreement includes a process to amend terms if GAAP changes materially affect the agreement's covenants or protections[334](index=334&type=chunk)[339](index=339&type=chunk) - The agreement explicitly states it amends and restates the Existing Credit Agreement as of the Effective Date (**April 4, 2025**), with all outstanding amounts under the prior agreement continuing under this new agreement[355](index=355&type=chunk)[351](index=351&type=chunk) - A mechanism is established to address potential discontinuation or regulatory reform of benchmark interest rates (like SOFR or CORRA), allowing for the determination of an alternative rate[347](index=347&type=chunk) [ARTICLE 2 THE CREDIT FACILITIES](index=60&type=section&id=ARTICLE%202%20THE%20CREDIT%20FACILITIES) This article details the operational mechanics, repayment terms, and management of the credit facilities, including the Borrowing Base and accordion feature [Facility Mechanics and Repayment](index=60&type=section&id=2.1-2.18%20Facility%20Mechanics%20and%20Repayment) This section details the operational mechanics of the credit facilities, including loan types, purpose, revolving nature, and repayment procedures - The credit facilities are for general corporate purposes, including oil and gas activities and acquisitions, but are explicitly prohibited from being used to repay or defease any Permitted Junior Debt[357](index=357&type=chunk) - Both the Syndicated and Operating facilities are revolving credit lines, allowing the Borrower to draw, repay, and redraw funds up to the Term Out Date of **May 31, 2026**[359](index=359&type=chunk)[360](index=360&type=chunk) - Mandatory repayment of all outstanding loans and obligations is required on the Maturity Date, which is **one year after the applicable Term Out Date**[375](index=375&type=chunk) - The Borrower must repay any amount by which outstanding loans exceed the facility limit due to currency fluctuations (a "Currency Excess"), typically within **5 to 30 days** of notice[380](index=380&type=chunk) [Facility Management and Adjustments](index=67&type=section&id=2.19-2.24%20Facility%20Management%20and%20Adjustments) This part covers facility management, including term out date extensions, lender replacement, Borrowing Base redetermination, and accordion features - The Borrower may request a **364-day extension** of the Syndicated and Operating Facility Term Out Dates once per calendar year, subject to lender approval[384](index=384&type=chunk)[392](index=392&type=chunk) - The initial Borrowing Base is established at **Cdn.$300,000,000**. It is scheduled for redetermination **semi-annually (May 31 and November 30)** and can also be redetermined at the request of the Majority of Lenders upon certain events, such as a Material Adverse Effect or significant asset disposition[402](index=402&type=chunk) - If a Borrowing Base redetermination results in a Borrowing Base Shortfall (where outstanding loans exceed the new Borrowing Base), the Borrower has **60 days** to repay the shortfall or add sufficient oil and gas properties to eliminate it[407](index=407&type=chunk) - An "accordion" feature allows the Borrower to increase the Total Commitment up to the level of the current Borrowing Base by adding new lenders or increasing existing lenders' commitments, provided no default exists[409](index=409&type=chunk) [ARTICLE 3 CONDITIONS PRECEDENT](index=74&type=section&id=ARTICLE%203%20CONDITIONS%20PRECEDENT) This article specifies the conditions that must be met for the credit agreement to become effective and for any funds to be drawn [Conditions for Funding and Effectiveness](index=74&type=section&id=3.1-3.3%20Conditions%20for%20Funding%20and%20Effectiveness) This section outlines the general and specific conditions required for the agreement's effectiveness and for any subsequent fund drawdowns - For any drawdown to occur, representations and warranties must be true, no Default or Event of Default must exist, and the total outstanding principal must not exceed the facility limit or the Borrowing Base[411](index=411&type=chunk) - The effectiveness of this amended and restated agreement is contingent upon several key conditions, including the satisfactory execution of all security documents, no Material Adverse Effect since December 31, 2024, and the successful closing of the InPlay Transaction[412](index=412&type=chunk)[413](index=413&type=chunk) [ARTICLE 4 EVIDENCE OF DRAWDOWNS](index=76&type=section&id=ARTICLE%204%20EVIDENCE%20OF%20DRAWDOWNS) This article establishes the Agent's role in maintaining official records of all loans, which serve as conclusive evidence of the Borrower's obligations [Account of Record](index=76&type=section&id=4.1%20Account%20of%20Record) This article stipulates that the Agent will maintain official books of account, which are conclusive evidence of the Borrower's obligations - The Agent and Operating Lender are responsible for maintaining the official records of all loans and amounts owed, which serve as conclusive evidence of the Borrower's debt obligations under the agreement[416](index=416&type=chunk) [ARTICLE 5 PAYMENTS OF INTEREST AND FEES](index=76&type=section&id=ARTICLE%205%20PAYMENTS%20OF%20INTEREST%20AND%20FEES) This article details the calculation and payment of interest and various fees associated with the credit facilities, including penalty interest [Interest and Fee Calculations](index=76&type=section&id=5.1-5.11%20Interest%20and%20Fee%20Calculations) This section details the calculation and payment of interest for different loan types, standby fees, agency fees, and penalty interest - Interest on loans is calculated by adding the Applicable Pricing Rate (a margin based on the Consolidated Senior Debt to EBITDA Ratio) to the relevant benchmark rate (Canadian Prime Rate, U.S. Base Rate, SOFR, or CORRA)[418](index=418&type=chunk)[420](index=420&type=chunk)[421](index=421&type=chunk)[422](index=422&type=chunk) - The Borrower must pay a standby fee on the daily undrawn amount of the credit facilities, calculated using the Applicable Pricing Rate[428](index=428&type=chunk) - Any overdue amounts will incur default interest at a rate of **2.0% per annum** above the rate applicable to Canadian Prime Rate Loans or U.S. Base Rate Loans[433](index=433&type=chunk) - The agreement includes provisions to ensure that the total interest charged does not exceed the maximum rate permitted by law, specifically the criminal rate under the Criminal Code (Canada)[435](index=435&type=chunk) [ARTICLE 6 LETTERS OF CREDIT](index=80&type=section&id=ARTICLE%206%20LETTERS%20OF%20CREDIT) This article governs the issuance, terms, and administration of Letters of Credit under the Operating Facility, including fees and reimbursement [Letter of Credit Provisions](index=80&type=section&id=6.1-6.7%20Letter%20of%20Credit%20Provisions) This article governs the issuance, terms, and administration of Letters of Credit, outlining fees and reimbursement obligations - Letters of Credit can be issued in Canadian or U.S. Dollars under the Operating Facility and reduce its availability. They typically have an expiration date not exceeding **one year**[438](index=438&type=chunk)[439](index=439&type=chunk) - If the Operating Lender makes a payment under an LC, the Borrower must immediately reimburse the amount. Failure to do so results in the drawn amount being automatically converted into a Canadian Prime Rate or U.S. Base Rate loan[442](index=442&type=chunk) - The Borrower is responsible for paying issuance fees based on the Applicable Pricing Rate, as well as the Operating Lender's customary administrative fees and expenses for all LCs[443](index=443&type=chunk)[444](index=444&type=chunk) - The Borrower's obligation to reimburse is absolute and unconditional, and it indemnifies the lenders from all claims and losses arising from the LCs, except in cases of gross negligence or willful misconduct[445](index=445&type=chunk)[449](index=449&type=chunk) [ARTICLE 7 PLACE AND APPLICATION OF PAYMENTS](index=84&type=section&id=ARTICLE%207%20PLACE%20AND%20APPLICATION%20OF%20PAYMENTS) This article outlines the procedures for making and applying payments, including tax withholding, set-off rights, and default payment application [Payment Mechanics and Application](index=84&type=section&id=7.1-7.7%20Payment%20Mechanics%20and%20Application) This article outlines the procedures for making and applying payments, including currency, tax withholding, and set-off rights - All payments by the Borrower must be made to the Agent or Operating Lender without set-off or counterclaim in the currency of the relevant loan[460](index=460&type=chunk) - Payments must be made free and clear of Indemnified Taxes. If withholding is required by law, the Borrower must "gross-up" the payment so the Lender receives the full amount[463](index=463&type=chunk)[464](index=464&type=chunk) - Upon an Event of Default, the Agent and Lenders have the right to set-off and apply any deposits or other indebtedness owed to the Borrower against the Borrower's outstanding obligations[470](index=470&type=chunk) - Changes in the Applicable Pricing Rate become effective on the day the Borrower delivers a Compliance Certificate showing a change in the Consolidated Senior Debt to EBITDA Ratio[473](index=473&type=chunk) [ARTICLE 8 REPRESENTATIONS AND WARRANTIES](index=87&type=section&id=ARTICLE%208%20REPRESENTATIONS%20AND%20WARRANTIES) This article contains detailed representations and warranties made by the Borrower, covering legal, financial, and compliance aspects [Borrower's Representations](index=87&type=section&id=8.1-8.5%20Borrower's%20Representations) This article lists the Borrower's representations and warranties regarding its legal existence, financial condition, and compliance with laws - The Borrower warrants its valid corporate existence, its authority to enter into the agreement, and that doing so does not conflict with any laws or other agreements[476](index=476&type=chunk)[477](index=477&type=chunk)[479](index=479&type=chunk) - The Borrower represents that it has no debt other than Permitted Debt and no liens on its assets other than Permitted Encumbrances[482](index=482&type=chunk)[483](index=483&type=chunk) - The Borrower confirms compliance with all applicable laws, including Sanctions, Anti-Corruption Laws, and Anti-Money Laundering/Anti-Terrorist Financing Laws, and states that loan proceeds will not be used in violation of these laws[505](index=505&type=chunk) - These representations and warranties are deemed to be repeated on the date of each drawdown, conversion, or rollover, confirming the ongoing validity of these statements[507](index=507&type=chunk) [ARTICLE 9 GENERAL COVENANTS](index=94&type=section&id=ARTICLE%209%20GENERAL%20COVENANTS) This article outlines the Borrower's affirmative and negative covenants, ensuring financial health and protecting the Lenders' interests [Affirmative Covenants of the Borrower](index=94&type=section&id=9.1%20Affirmative%20Covenants%20of%20the%20Borrower) This section outlines the Borrower's obligations, including timely payments, record maintenance, legal compliance, and financial reporting - The Borrower must provide audited annual financial statements within **90 days of year-end** and unaudited quarterly statements within **45 days of each quarter-end**[518](index=518&type=chunk) - An independent engineering report on reserves is required **annually by March 31**, with an **internal update by October 31**[519](index=519&type=chunk) - The Borrower must promptly notify the Agent of any Default, Event of Default, Material Adverse Effect, or significant litigation[524](index=524&type=chunk)[525](index=525&type=chunk)[526](index=526&type=chunk) [Negative Covenants of the Borrower](index=103&type=section&id=9.2%20Negative%20Covenants%20of%20the%20Borrower) This section details actions the Borrower is prohibited from taking without consent, protecting lenders' interests and asset base - The Borrower is restricted from creating any Security Interests on its assets, other than those defined as Permitted Encumbrances[551](index=551&type=chunk) - Asset sales or hedge monetizations exceeding the Threshold Amount (greater of Cdn.$[Redacted – Amount] or [Redacted – Percentage] of the Borrowing Base) since the last Borrowing Base redetermination require prior written consent of the Lenders[553](index=553&type=chunk)[318](index=318&type=chunk) - The Borrower is prohibited from incurring any debt other than Permitted Debt and from making investments other than Permitted Investments[555](index=555&type=chunk)[556](index=556&type=chunk) - Distributions (e.g., dividends) and prepayments of Permitted Junior Debt are only allowed if specific conditions are met, including no default existing, the pro forma Consolidated Total Debt to EBITDA Ratio being below a certain threshold (**1.00:1.00** for distributions, **1.50:1.00** for prepayments), and maintaining minimum liquidity[250](index=250&type=chunk)[259](index=259&type=chunk) [ARTICLE 10 SECURITY](index=107&type=section&id=ARTICLE%2010%20SECURITY) This article establishes the collateral for the credit facilities, mandating a first-priority security interest on the Borrower's and Material Subsidiaries' assets [Security Provisions](index=107&type=section&id=10.1-10.11%20Security%20Provisions) This article establishes the collateral for the credit facilities, mandating a first-priority security interest on the Borrower's assets - All Secured Obligations are secured by a first-priority Security Interest on all present and future property, assets, and undertaking of the Borrower and each of its Material Subsidiaries[571](index=571&type=chunk) - The Borrower must ensure that at all times, at least **95% of Consolidated Assets** and **95% of Consolidated EBITDA** are owned by or attributable to the Borrower and Material Subsidiaries that have provided security[574](index=574&type=chunk) - Upon the occurrence of a "Fixed Charge Event" (such as a continuing Default), the Agent can require the security to be registered against specific land titles and mineral rights to create fixed charges[579](index=579&type=chunk)[580](index=580&type=chunk) [ARTICLE 11 EVENTS OF DEFAULT AND ACCELERATION](index=112&type=section&id=ARTICLE%2011%20EVENTS%20OF%20DEFAULT%20AND%20ACCELERATION) This article defines events of default and outlines the Lenders' remedies, including debt acceleration and security enforcement [Default and Remedies](index=112&type=section&id=11.1-11.10%20Default%20and%20Remedies) This article defines events of default and outlines the Lenders' remedies, including debt acceleration and security enforcement - An Event of Default can be triggered by various events, including non-payment, breach of covenants, insolvency, judgments exceeding the Threshold Amount, and cross-defaults to other debt[590](index=590&type=chunk)[592](index=592&type=chunk)[593](index=593&type=chunk) - A Change of Control, defined as a person or group acquiring **more than 50% of voting securities**, constitutes an Event of Default[87](index=87&type=chunk)[595](index=595&type=chunk) - Upon an Event of Default, the Agent may, upon request of the Majority of Lenders, accelerate the debt, making all outstanding principal, interest, and other obligations immediately due and payable[595](index=595&type=chunk) - Following acceleration, all proceeds from realization on the security are applied first to costs, then rateably to all Secured Parties (Lenders and Hedging Affiliates) to satisfy the Secured Obligations[603](index=603&type=chunk) [ARTICLE 12 CHANGE OF CIRCUMSTANCES](index=119&type=section&id=ARTICLE%2012%20CHANGE%20OF%20CIRCUMSTANCES) This article addresses adjustments for external changes, including benchmark rate replacement, increased costs due to law changes, and illegality of loans [Adjustments for Market and Legal Changes](index=119&type=section&id=12.1-12.5%20Adjustments%20for%20Market%20and%20Legal%20Changes) This article addresses adjustments for market and legal changes, including benchmark rate replacement and increased costs due to new regulations - The agreement includes a robust framework for transitioning to a new benchmark interest rate if a "Benchmark Transition Event" occurs, allowing the Agent to implement a Benchmark Replacement and make conforming changes without requiring an amendment from all parties[612](index=612&type=chunk)[613](index=613&type=chunk) - If a change in law or regulation (including Basel III or Dodd-Frank) increases a Lender's cost of maintaining its commitment or loan, the Lender can require the Borrower to pay "Additional Compensation" to cover these increased costs[618](index=618&type=chunk)[621](index=621&type=chunk) - If it becomes illegal for a Lender to make or maintain a certain type of loan, its obligation to do so is terminated, and the Borrower must prepay or convert the affected loan[624](index=624&type=chunk) [ARTICLE 13 COSTS, EXPENSES AND INDEMNIFICATION](index=125&type=section&id=ARTICLE%2013%20COSTS%2C%20EXPENSES%20AND%20INDEMNIFICATION) This article establishes the Borrower's responsibility for costs and its obligation to indemnify the Lenders and Agent against losses [Cost and Indemnity Provisions](index=125&type=section&id=13.1-13.5%20Cost%20and%20Indemnity%20Provisions) This article establishes the Borrower's responsibility for costs and its obligation to indemnify the Lenders and Agent against losses - The Borrower is required to pay all reasonable and documented out-of-pocket costs and expenses of the Agent and Lenders related to the negotiation, administration, and enforcement of the credit agreement[633](index=633&type=chunk) - The Borrower provides a general indemnity to all Indemnified Parties (Lenders, Agent, etc.) against losses, damages, or liabilities incurred in connection with the credit facilities, except those resulting from the Indemnified Party's own gross negligence or willful misconduct[634](index=634&type=chunk) - A specific environmental indemnity holds the Lenders and Agent harmless from any Environmental Claims related to the Borrower's properties or operations[636](index=636&type=chunk) [ARTICLE 14 THE AGENT AND ADMINISTRATION OF THE CREDIT FACILITY](index=127&type=section&id=ARTICLE%2014%20THE%20AGENT%20AND%20ADMINISTRATION%20OF%20THE%20CREDIT%20FACILITY) This article defines the Agent's role, authority, and duties in administering the credit facility, acting on behalf of the Lenders [Agent's Role and Administration](index=127&type=section&id=14.1-14.16%20Agent's%20Role%20and%20Administration) This article defines the Agent's role, authority, and duties in administering the credit facility, including payment handling and liability - Each Lender irrevocably appoints the Agent to act on its behalf. The Agent is required to act upon the instructions of the Majority of the Lenders on most matters[643](index=643&type=chunk) - The Agent is not liable to the Lenders for any action taken or omitted, except for its own gross negligence or willful misconduct. Each Lender confirms it has made its own independent credit decision and has not relied on the Agent[652](index=652&type=chunk)[657](index=657&type=chunk) - The Lenders agree to indemnify the Agent on a pro-rata basis for any liabilities or costs incurred in its role as Agent that are not reimbursed by the Borrower[658](index=658&type=chunk) - The article includes detailed provisions for managing "Erroneous Payments," where the Agent mistakenly transmits funds to a Lender, establishing that such funds remain the property of the Agent and must be returned[672](index=672&type=chunk) [ARTICLE 15 GENERAL](index=137&type=section&id=ARTICLE%2015%20GENERAL) This article contains miscellaneous provisions, including confidentiality, governing law, assignment rules, and amendment requirements [Miscellaneous Provisions](index=137&type=section&id=15.1-15.22%20Miscellaneous%20Provisions) This final article contains miscellaneous provisions, including confidentiality, governing law, assignment rules, and amendment requirements - The Agent and Lenders agree to keep information confidential but are permitted to disclose it under certain circumstances, such as to regulators, auditors, or in legal proceedings[686](index=686&type=chunk) - Amendments and waivers generally require the written consent of the Borrower and the Majority of the Lenders. However, fundamental changes, such as to the facility amount, interest rates, maturity dates, or security, require the consent of all Lenders[704](index=704&type=chunk) - The agreement is governed by the laws of the Province of Alberta and the applicable laws of Canada[695](index=695&type=chunk) - The agreement includes an acknowledgement and consent to the potential application of "Bail-In" legislation, where liabilities of an affected financial institution could be written down or converted to equity by a resolution authority[722](index=722&type=chunk)

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]