Obsidian Energy(US:OBE)2019-05-10 18:54Financial Data and Key Metrics Changes - The first quarter of 2019 saw funds flow from operations (FFO) at $36 million, a $38 million increase from the previous quarter, driven by stabilized oil differentials and improved WTI prices [13] - The field netback in the Cardium area was $28.08 per BOE, an increase of $16.87 per BOE compared to the previous quarter [13] - Production averaged 27,651 BOE per day, exceeding prerelease targets [15] - Net debt as of March 31, 2019, was $497 million, with a senior debt-to-adjusted EBITDA ratio of 2.9 times, well within the amended covenant of 4.25 times [19][20] Business Line Data and Key Metrics Changes - The Cardium development program showed strong production rates, with initial production rates averaging 538 BOE per day per well for 19 wells drilled [22] - The 12-18 three-well pad averaged initial production rates of 620 BOE per day per well, indicating strong performance in the Crimson area [23] - Capital spending for the first quarter totaled $34 million, including five development wells and various optimization activities [14] Market Data and Key Metrics Changes - Canadian light and heavy oil differentials averaged $4.85 and $12.22 per barrel respectively during the quarter [13] - The company implemented a conservative hedging strategy to protect cash flow and capital programs while allowing for potential benefits from rising commodity prices [17] Company Strategy and Development Direction - The company is focused on maintaining momentum in the Cardium area, strengthening the balance sheet, and reviewing cost structures to improve operational efficiency [7][9][10] - Plans to monetize non-core assets to reduce debt and allocate proceeds responsibly between the balance sheet and development activities in the Cardium [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's direction, highlighting strong operational results and increased cash flow [6] - The focus remains on enhancing shareholder value through disciplined spending and operational improvements [29] Other Important Information - The total planned capital for 2019 remains unchanged at $120 million, with $45 million allocated for the second half of the year [27] - The company plans to drill additional wells in the Crimson asset, reaffirming its commitment to the Cardium as a high-margin asset [25][26] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded with management reiterating confidence in the company's direction and operational capabilities [28][30]