Core Viewpoint - Obsidian Energy has announced its capital program and financial guidance for the first half of 2025, focusing on heavy oil production growth at Peace River while leveraging cash flow from light oil assets for reinvestment [1][2]. Capital Expenditure and Production Guidance - The company plans capital expenditures between $185 million and $195 million for the first half of 2025, including approximately $24 million for exploration/appraisal drilling and $11 million for waterflood projects [3][7]. - First half production is expected to average approximately 33,800 boe/d, representing a three percent decrease from 35,006 boe/d in the first half of 2024, primarily due to the sale of approximately 10,000 boe/d of production [3][6]. Operational Focus and Strategy - The majority of the first half 2025 program will be concentrated on Peace River, with a significant focus on exploration/appraisal drilling to delineate land positions [1][2]. - The company is initiating its first Clearwater waterflood pilot during the first half of 2025, which is expected to enhance future production levels and recovery factors [2][16]. Financial Performance Expectations - The company anticipates funds from operations (FFO) of approximately $180 million for the first half of 2025, with a net debt to FFO ratio of approximately 0.7 times [4][6]. - The guidance is based on lower commodity prices than in 2024, with WTI expected at $71.00/bbl and AECO natural gas at $2.00/GJ [4][7]. Development and Exploration Plans - The capital plan includes 38 net operated wells, with a focus on heavy oil assets in Peace River and the initiation of Clearwater waterflood projects [5][14]. - The company plans to rig release a total of 18 development and exploration/appraisal wells targeting the Clearwater formation in the first quarter of 2025 [17][18]. Transaction Impact - The agreement to sell operated Pembina assets to InPlay Oil Corp. is expected to enhance liquidity and provide future optionality for the company [2][12]. - The transaction is anticipated to close by March 31, 2025, and will impact the company's production and financial metrics accordingly [39].

Core Insights - Obsidian Energy reported a successful year in 2024, achieving a 16% increase in average annual production to 37,474 boe/d compared to 32,275 boe/d in 2023, surpassing previous guidance [9][18] - The company generated $432.0 million in funds flow from operations (FFO), a 14% increase from 2023, with a basic FFO per share of $5.69 [11][18] - Despite lower commodity prices, the company maintained strong production levels and executed a significant capital program, resulting in increased reserves and production growth [9][12] Financial Performance - Cash flow from operating activities for Q4 2024 was $115.0 million, while for the full year it was $361.9 million, compared to $117.7 million and $352.7 million in 2023 respectively [4][11] - The net income for 2024 was a loss of $202.6 million ($2.67 per share), primarily due to a non-cash impairment charge related to the classification of Pembina assets as held for sale [13][18] - Capital expenditures totaled $343.1 million in 2024, up from $292.5 million in 2023, with a focus on expanding production and reserves [12][13] Operational Highlights - Daily production in Q4 2024 averaged 40,119 boe/d, with significant contributions from the Peace River area [9][12] - The company repurchased and canceled approximately 4.5 million shares for $41.7 million in 2024, continuing its share buyback program [10][13] - Net operating costs decreased to $13.85 per boe in 2024 from $14.21 per boe in 2023, benefiting from higher production levels [13][18] Capital Program and Reserves - The capital program in 2024 was heavily focused on Peace River heavy oil assets, leading to increased production and reserves [12][14] - Reserves before-tax net present value (NPV10) increased to $1.6 billion for proved developed producing (PDP) reserves, reflecting a 15% increase on a per share basis [14] - The company replaced 148% of its 2024 production on a PDP basis, indicating effective reserve management and development [14] Future Outlook - The company is in the process of renewing its normal course issuer bid (NCIB) after the current program expires at the end of February 2025 [10] - A definitive asset purchase agreement was entered into with InPlay Oil Corp. to divest Pembina assets for approximately $320 million, which will be used to pay down debt and improve liquidity [20][18] - The company plans to continue focusing on operational execution and cost reduction initiatives while monitoring commodity market volatility [17][18]

Core Viewpoint - Obsidian Energy has announced the sale of its operated Pembina assets to InPlay Oil Corp for approximately $320 million, which will enhance its financial flexibility and reduce debt significantly [1][2][4]. Transaction Overview - The transaction includes $220 million in cash, $85 million in equity, and a 34.6% interest in the Willesden Green Cardium Unit 2, increasing Obsidian's ownership in that field to 99.8% [4][5]. - The cash proceeds will primarily be used to pay down debt, reducing estimated net debt from $412 million to approximately $192 million post-transaction [2][4]. Financial Metrics - The total consideration for the Pembina assets is valued at $305 million, with an additional $15 million for the WGCU2 interest, representing an approximate 2.7x multiple on estimated 2024 net operating income [7][8]. - The average production from the sold assets is approximately 10,300 boe/d, implying a production multiple of about $31,000 per boe/d [7][8]. Strategic Implications - Post-transaction, Obsidian Energy will focus on its Peace River assets, which will account for over 42% of total production and 33% of total proved plus probable reserves [7][8]. - The transaction is expected to streamline operations and enhance the company's ability to generate free cash flow from its remaining light oil assets [6][7]. Future Plans - The company plans to evaluate monetization options for its InPlay share position in the second half of 2025, aiming to recycle capital for further growth [6][7]. - Obsidian Energy will also have two nominees on the InPlay Board of Directors and expects to receive monthly dividend income from its InPlay shares [6][7].

Group 1 - Obsidian Energy (NYSE: OBE) reported a strong finish to its 2024 operations, with Q4 2024 production approximately at 40,000 BOEPD, leading to full-year production slightly above revised guidance [2] Group 2 - The investing group Distressed Value Investing focuses on value opportunities and distressed plays, particularly in the energy sector, and is led by an analyst with over 15 years of experience [3]

Core Viewpoint - Obsidian Energy has reported strong operational results for 2024, exceeding production guidance and setting the stage for further growth in 2025, with a target of reaching 50,000 boe/d by 2026 [2][3][4]. Production and Financial Performance - The company anticipates an average production of approximately 37,450 boe/d for the full year 2024, which is a 16% increase compared to 2023, surpassing the guidance range of 37,000 to 37,400 boe/d [2][5]. - In Q4 2024, average production was approximately 40,000 boe/d based on preliminary estimates [2]. - The completion of the 2024 capital program has further delineated the Peace River acreage, with successful initial production rates from new wells in the Peavine and Gift Lake areas [5][9]. Drilling and Development Activities - A total of 66 operated wells were rig released in 2024, with 65 brought on production by year-end [4][6]. - The company has mobilized two additional drilling rigs to commence its 2025 activities, currently operating six rigs [3][7]. - The 2025 development program has already started with five rigs active in Peace River [7][8]. Heavy Oil Assets - The Peace River program continued to show robust production rates, with significant growth in Clearwater production from 99 boe/d in January 2023 to over 4,500 boe/d in December 2024 [9][10]. - The Dawson Clearwater development field exceeded production expectations, allowing for a faster pace of development [9][10]. Light Oil Assets - The Pembina program was completed with all planned wells rig released and on production by year-end, achieving a gross average IP 30-day rate of 343 boe/d per well [17]. - The Willesden Green area has seen initial encouraging results, although sand production issues have required intervention [17][14]. Management and Strategic Focus - The company has appointed Jay McGilvary as the new Vice President of Development, who will lead subsurface characterization and exploitation efforts [14]. - The strategic focus remains on appraising and delineating heavy oil assets while maintaining stable production from light oil operations [3][4]. Hedging and Market Conditions - The company has established various hedging contracts for oil and natural gas, with WTI swaps in place for January to March 2025 at prices ranging from $100.46 to $106.23 per barrel [15][16]. - The company continues to assess market conditions, including fluctuations in oil and gas prices, as it prepares to announce its first half 2025 capital program [3][4].

Group 1 - The article discusses the analysis of oil and gas companies, specifically highlighting Obsidian Energy and its peers, focusing on identifying undervalued companies in the sector [1] - The analysis includes a comprehensive breakdown of essential factors such as balance sheets, competitive positioning, and development prospects of the companies [1] - The author emphasizes the cyclical nature of the oil and gas industry, which is characterized by boom and bust cycles, requiring patience and experience for successful investment [2] Group 2 - The article mentions that the author holds a beneficial long position in several companies, indicating a personal investment interest in the sector [3] - It is noted that the article is based on the author's own opinions and is not influenced by any compensation from the companies mentioned [3] - The content is aimed at providing insights to members of the Oil & Gas Value Research service, who receive exclusive analysis not available to the general public [1]

Ethical Web AI Appoints Peter Varnish OBE to Advisory Board NEW YORK, NY, November 18, 2024 – PRISM MediaWire – Bubblr Inc., d/b/a Ethical Web AI (OTCQB: BBLR) – a frontrunner in ethical technology determined to revolutionize the digital domain, today announced it has appointed Peter Varnish OBE to its Advisory Board.Peter Varnish has built a career of outstanding achievement as an independent electronics and weapons engineer specializing in defence and security, and he advises corporations and governments ...

Higher third quarter funds flow from operations of $124.7 million ($1.64 per share)— a 34 percent increase over the third quarter of 2023 on a per share basis 2024 average production expected to be at the top end of guidance range Robust Clearwater exploration/appraisal drilling results at West Dawson establishes new development fieldCalgary, Alberta--(Newsfile Corp. - October 31, 2024) - OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) ("Obsidian Energy", the "Company", "we", "us" or "our") is pleased ...

Calgary, Alberta--(Newsfile Corp. - October 24, 2024) - OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) ("Obsidian Energy", the "Company", "we", "us" or "our") expects to release our third quarter 2024 financial and operational results (the "Release") before North American markets open on Thursday, October 31, 2024. In addition, the third quarter management's discussion and analysis and the unaudited consolidated financial statements will be available on our website at www.obsidianenergy.com, and unde ...

Calgary, Alberta--(Newsfile Corp. - October 7, 2024) - OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) ("Obsidian Energy", the "Company", "we", "us" or "our") today announced an increase to our syndicated credit facility (the "Credit Facility") along with the substantial repayment of our term loan (the "Term Loan"). The aggregate amount available on our Credit Facility has increased to $300 million from $260 million with the addition of ICBC Standard Bank Plc. to the Company's banking syndicate. The re ...