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]

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 ...

. . . Obsidian Energy Announces Increased 2024 Production Guidance and Revised Capital Program September 30, 2024 6:40 PM EDT | Source: Obsidian Energy Ltd. • Revised 2024 guidance range upward to 37,000 to 37,400 boe/d with continued outperformance of development program • Recalibrated fourth quarter 2024 capital program to allow incremental share buybacks and additional debt reduction • Licensed initial well targeting Belly River formation in Willesden Green to be drilled in the fourth quarter Calgary, Al ...

Grew year-over-year average daily production by 15 percent to 35,773 boe/d Increased funds flow from operations by 41 percent on a per share basis to $115.2 million ($1.51 per share) Completed first half capital program with 34 (33.4 net) operated wells rig released and 33 (32.4 net) wells brought on production Completed the Peace River Clearwater acquisition, expanding our land base to 680 net sections with the addition of 148 net sections and production of 1,700 boe/d Calgary, Alberta--(Newsfile Corp. - A ...

Calgary, Alberta--(Newsfile Corp. - July 25, 2024) - OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) ("Obsidian Energy", the "Company", "we", "us" or "our") expects to release our second quarter 2024 financial and operational results (the "Release") before North American markets open on Thursday, August 1, 2024. In addition, the second quarter management's discussion and analysis and the unaudited consolidated financial statements will be available on our website at www.obsidianenergy.com, and under ou ...