Obsidian Energy Announces TSX Approval for Renewal of Normal Course Issuer Bid

Rhea-AI Summary

Obsidian Energy (TSX: OBE) received TSX acceptance to renew its normal course issuer bid (NCIB). The NCIB permits repurchase of up to 6,458,536 common shares (10% of public float) from March 3, 2026 to March 2, 2027. Any repurchased shares will be cancelled.

Obsidian had 67,306,951 shares outstanding and a public float of 64,585,363 as of February 17, 2026. The company previously repurchased 7,144,408 shares under the prior NCIB at a VWAP of about $7.16 per share.

Positive

• NCIB size allows repurchase of 6,458,536 shares (10% of public float)
• Previous execution: repurchased 7,144,408 shares at VWAP ~$7.16, showing program use
• Automatic purchase plan pre-cleared by TSX enables buys during blackout periods

Negative

• Daily TSX limit of 59,759 shares (25% of ADV) restricts daily buyback volume
• Time-limited program expires March 2, 2027, requiring renewal or replacement thereafter

Key Figures

NCIB authorization: 6,458,536 shares Public float: 64,585,363 shares Shares outstanding: 67,306,951 shares +5 more

8 metrics

NCIB authorization 6,458,536 shares Up to 10% of public float under renewed NCIB

Public float 64,585,363 shares Public float as of February 17, 2026

Shares outstanding 67,306,951 shares Common shares outstanding on February 17, 2026

Daily NCIB limit 59,759 shares TSX daily purchase cap (25% of ADTV)

TSX ADTV 239,036 shares Average daily trading volume, 6 months ended Jan 31, 2026

Prior NCIB capacity 7,144,408 shares Maximum permitted under NCIB starting March 3, 2025

Shares repurchased 7,144,408 shares Total bought under expiring NCIB as of Feb 17, 2026

VWAP repurchase price $7.16 per share Volume weighted average price under expiring NCIB

Market Reality Check

Price: $7.46 Vol: Volume 387,558 is below t...

low vol

$7.46 Last Close

Volume Volume 387,558 is below the 20-day average of 593,938 (relative volume 0.65). low

Technical Price 7.67 trades above the 200-day MA at 6.05 and is 5.31% below the 52-week high of 8.10.

Peers on Argus

While OBE is down 1.19%, key peers like SD (+2.73%), GFR (+3.02%), GPRK (+0.83%)...

While OBE is down 1.19%, key peers like SD (+2.73%), GFR (+3.02%), GPRK (+0.83%), EGY (+0.59%) and TBN (+0.39%) are positive, indicating a stock-specific move rather than a sector-wide trend.

Historical Context

5 past events · Latest: Feb 19 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 19	Year-end filings	Neutral	+4.2%	Filed 2025 financial statements, MD&A, and reserves disclosures for regulators.
Feb 19	Earnings results	Positive	-1.9%	Reported Q4 and full-year 2025 results with FFO and net income metrics.
Feb 05	Reserves update	Positive	-4.5%	Announced strong 2025 reserves metrics and NPV10 across reserve categories.
Jan 22	2026 guidance	Neutral	-3.4%	Outlined 2026 capex, production guidance, FFO and free cash flow forecast.
Dec 03	Debt refinancing	Neutral	-0.7%	Issued new 2030 notes and redeemed higher-coupon 2027 notes, reducing debt costs.

Pattern Detected

Recent positive operational and financial updates have sometimes seen negative or muted price reactions, suggesting occasional divergence between fundamentals-focused news and short-term trading.

Recent Company History

Over the past few months, Obsidian Energy has focused on balance sheet refinement, detailed 2025 results, and 2026 guidance. Key updates included reserves strength, a major asset sale with debt reduction, and confirmation of year-end disclosures on Feb 19, 2026. Several fundamentally positive items, including earnings and reserves, saw negative price reactions, while neutral disclosure filings drew a positive response. Today’s buyback renewal continues a pattern of capital returns following prior NCIB activity.

Market Pulse Summary

This announcement extends Obsidian Energy’s capital return strategy by renewing its NCIB for up to 6...

Analysis

This announcement extends Obsidian Energy’s capital return strategy by renewing its NCIB for up to 6,458,536 shares, or 10% of the 64,585,363-share public float, after fully using the prior 7,144,408-share program at a VWAP of $7.16. Investors may track actual repurchase pacing versus the TSX daily cap of 59,759 shares, overall balance sheet progress from recent transactions, and alignment with previously issued 2026 operational guidance.

Key Terms

normal course issuer bid, public float, open market purchases, Rule 10b-18, +4 more

8 terms

normal course issuer bid financial

"has accepted Obsidian Energy's notice of intention to renew our normal course issuer bid"

A Normal Course Issuer Bid is when a company buys back its own shares from the stock market over time. This usually shows that the company believes its stock is undervalued and wants to support its price, which can be important for investors to watch.

public float financial

"representing 10 percent of the Company's public float, as defined by the TSX"

Public float is the total number of a company's shares that are available for trading by the general public. It excludes shares held by company insiders or large stakeholders who are unlikely to sell them easily. This figure helps investors understand how much of the company's stock is actively available, which can influence its liquidity and how easily its price might change.

open market purchases financial

"Purchases under the NCIB will be made through open market purchases at market price"

Open market purchases are buys of a company’s shares (or other securities) made on public exchanges at prevailing market prices rather than through private deals. For investors this matters because when a company buys back its own stock it reduces the number of shares available, which can boost per-share earnings and often signals management’s confidence; it also affects supply, demand and short-term liquidity much like someone quietly buying up items from a crowded marketplace.

Rule 10b-18 regulatory

"and/or Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended"

Rule 10b-18 is a regulation that sets strict rules for how a company's executives and employees can buy back their own company's stock from the market. It helps ensure that these buybacks happen in a fair and transparent way, reducing the chance of market manipulation. This is important for investors because it offers protection against unfair practices and promotes confidence in the integrity of the stock market.

block purchases financial

"subject to certain exceptions for block purchases, based on the average daily trading volumes"

A block purchase is a large, privately negotiated trade of shares or bonds executed between institutions or big investors outside the regular public market. Think of it like buying a pallet of goods at once instead of individual items; it lets buyers and sellers move big positions with less public price disruption, but it can still signal shifting ownership and affect market liquidity and investor perceptions of demand for the security.

average daily trading volume market

"representing 25 percent of the average daily trading volume of 239,036 common shares"

The average daily trading volume is the typical number of shares or units of a security that change hands each trading day, calculated over a set period. It tells investors how active a market is—like average traffic on a road—so higher volume usually means easier, faster trades and smaller price swings when buying or selling, while low volume can make orders harder to fill and cause bigger price moves.

automatic securities purchase plan financial

"Obsidian Energy has established an automatic securities purchase plan with a designated broker"

A plan a company sets up to buy its own shares automatically according to preset rules — for example, when the stock hits certain prices or at regular intervals — without managers deciding each trade. For investors this matters because automatic buybacks can reduce the number of shares outstanding, often supporting the stock price and boosting per-share metrics, much like a steady repurchasing habit gradually shrinking the size of a shared pie.

volume weighted average price market

"at a volume weighted average price per common share of approximately $7.16 per share"

The volume weighted average price (VWAP) is a way to measure the average price of a security, such as a stock, over a specific period, taking into account how many units were traded at each price. It’s similar to calculating the average cost of items bought when some are more frequently purchased than others. Investors use VWAP to assess whether a security is being bought or sold at a fair price during trading.

AI-generated analysis. Not financial advice.

Calgary, Alberta--(Newsfile Corp. - February 26, 2026) -  OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) ("Obsidian Energy", the "Company", "we", "us" or "our") is pleased to announce that the Toronto Stock Exchange (the "TSX") has accepted Obsidian Energy's notice of intention to renew our normal course issuer bid (the "NCIB"). The NCIB allows Obsidian Energy to purchase up to 6,458,536 common shares (representing 10 percent of the Company's public float, as defined by the TSX, as of February 17, 2026) over a period of 12 months commencing on March 3, 2026. On February 17, 2026, Obsidian Energy had 67,306,951 common shares outstanding and 64,585,363 common shares in our public float. The NCIB will expire no later than March 2, 2027.

Under the NCIB, common shares may be repurchased through the facilities of the TSX, the NYSE American stock exchange and/or alternative trading systems in Canada and the United States, or as otherwise permitted under applicable securities laws. Purchases under the NCIB will be made through open market purchases at market price, as well as by other means as may be permitted under applicable securities laws. The NCIB will be effected in accordance with the TSX NCIB rules and/or Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended, which contain restrictions on the number of common shares that may be purchased on a single day, subject to certain exceptions for block purchases, based on the average daily trading volumes of Obsidian Energy's common shares on the applicable exchange.

The total number of common shares Obsidian Energy is permitted to purchase on the TSX is subject to a daily purchase limit of 59,759 common shares, representing 25 percent of the average daily trading volume of 239,036 common shares on the TSX calculated for the six-month period ended January 31, 2026. However, the Company may make one block purchase per calendar week on the TSX which exceeds such daily repurchase restrictions. Any common shares that are purchased under the NCIB will be cancelled upon their purchase by Obsidian Energy.

The actual number of common shares that may be purchased under the NCIB and the timing of any such purchases will be determined by Obsidian Energy. The Company believes that, at times, the prevailing share price does not reflect the underlying value of our common shares and the repurchase of our common shares for cancellation represents an attractive opportunity to enhance Obsidian Energy's per share metrics, and thereby increase the underlying value of the Company's common shares for our shareholders.

Obsidian Energy has established an automatic securities purchase plan with a designated broker whereby common shares may be repurchased at times when such purchases would otherwise be prohibited pursuant to regulatory restrictions or self-imposed blackout periods. Under the automatic securities purchase plan and before entering into a self-imposed blackout period, the Company may, but is not required to, request that the designated broker make purchases under the NCIB. Such purchases will be made at the discretion of the designated broker, within parameters established by Obsidian Energy prior to the blackout periods. Outside of the blackout periods, purchases are made at the discretion of the Company's management. The automatic securities purchase plan constitutes an "automatic plan" for purposes of applicable Canadian securities legislation and has been pre-cleared by the TSX.

The Company is permitted to repurchase up to 7,144,408 common shares under its current NCIB that commenced on March 3, 2025, and will expire on March 2, 2026. As at February 17, 2026, Obsidian Energy had repurchased 7,144,408 common shares on the open market, which was the maximum allowed under our expiring NCIB, at a volume weighted average price per common share of approximately $7.16 per share.

ABOUT OBSIDIAN ENERGY

Obsidian Energy is an intermediate-sized oil and gas producer with a well-balanced portfolio of high-quality assets, primarily in the Peace River, Willesden Green and Viking areas in Alberta. The Company's business is to explore for, develop and hold interests in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin.

Obsidian Energy is headquartered in Calgary and listed on the Toronto Stock Exchange and NYSE American (TSX: OBE) (NYSE American: OBE). To learn more, visit Obsidian Energy's website.

ADDITIONAL READER ADVISORIES

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements or information (collectively "forward-looking statements") within the meaning of applicable Canadian and U.S. securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking statements or information. More particularly and without limitation, this news release contains forward-looking statements and information concerning: the timing, methods and quantity of any purchases by Obsidian Energy of its common shares under the NCIB; and the Company's belief that the repurchase of common shares under the NCIB will increase the underlying value of common shares held by shareholders.

The forward-looking statements and information are based on certain key expectations and assumptions made by Obsidian Energy, including: the duration and impact of tariffs that are currently in effect on goods exported from or imported in Canada, and that other than such tariffs, neither the U.S. nor Canada (i) increases the rate or scope of such tariffs, reenacts tariffs that are currently suspended, or imposes new tariffs, on the import of goods from one country to the other, including on oil and natural gas, and/or (ii) imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including on oil and natural gas; Obsidian Energy's views with respect to its financial condition and prospects, the stability of general economic and market conditions, currency exchange rates and interest rates; the availability of cash or other financing sources to fund repurchases of common shares under the NCIB and our ability to comply with applicable terms and conditions under the Company's debt agreements; the existence of alternative uses for Obsidian Energy's cash and other financial resources.

The future acquisition by the Company of the Company's common shares pursuant to its share buyback program (including through its NCIB), if any, and the level thereof is uncertain. Any decision to acquire common shares of the Company pursuant to the share buyback program will be subject to the discretion of the board of directors of the Company and may depend on a variety of factors, including, without limitation, the Company's business performance, financial condition, financial requirements, growth plans, expected capital requirements and other conditions existing at such future time including, without limitation, contractual restrictions and satisfaction of the solvency tests imposed on the Company under applicable corporate law. There can be no assurance of the number of common shares of the Company that the Company will acquire pursuant to its share buyback program, if any, in the future.

Although Obsidian Energy believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Obsidian Energy can give no assurance that they will prove to be correct. By its nature, such forward-looking statements and information are subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to: the risk that: (i) the tariffs that are currently in effect on goods exported from or imported into Canada continue in effect for an extended period of time, the tariffs that have been threatened are implemented, the tariffs that are currently suspended are reactivated, the rate or scope of tariffs are increased, or new tariffs are imposed, including on oil and natural gas, (ii) the U.S. and/or Canada imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including on oil and natural gas, and (iii) the tariffs imposed or threatened to be imposed by the U.S. on other countries and retaliatory tariffs imposed or threatened to be imposed by other countries on the US, will trigger a broader global trade ware which could have a material adverse effect on the Canadian, U.S. and global economies, and by extension the Canadian oil and natural gas industry and the Company, including by decreasing demand for (and the price of) oil and natural gas, disrupting supply chains, increasing costs, causing volatility in global financial markets, and limiting access to financing; our inability to repurchase common shares under the NCIB in the amounts permitted or at all due to a lack of financial resources; the inability to comply with our debt agreements; legal restrictions on share repurchases; competing demands for our financial resources; the anticipated benefits of repurchasing our shares under the NCIB do not materialize; Obsidian Energy's future capital requirements; general economic and market conditions; demand for Obsidian Energy's products; and unforeseen legal or regulatory developments and other risk factors detailed from time to time in Obsidian Energy reports filed with the Canadian securities regulatory authorities and the United States Securities and Exchange Commission. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are cautioned that the assumptions used in the preparation of such forward-looking statements and information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on such forward-looking statements and information. Obsidian Energy gives no assurance that any of the events anticipated will transpire or occur, or, if any of them do, what benefits Obsidian Energy will derive from them. The forward-looking statements and information contained in this news release are expressly qualified by this cautionary statement. Except as required by law, the Company does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein. Readers should also carefully consider the matters discussed that could affect Obsidian Energy, or its operations or financial results in Obsidian Energy's Annual Information Form (see "Risk Factors" and "Forward-Looking Statements" therein) for the year ended December 31, 2025, which is available on the SEDAR+ website (www.sedarplus.ca), EDGAR website (www.sec.gov) or Obsidian Energy's website.

Obsidian Energy shares are listed on both the Toronto Stock Exchange in Canada and the NYSE American exchange in the United States under the symbol "OBE".

CONTACT
	OBSIDIAN ENERGY
		Suite 200, 207 - 9th Avenue SW, Calgary, Alberta T2P 1K3 Phone: 403-777-2500 Toll Free: 1-866-693-2707 Website: www.obsidianenergy.com
		Investor Relations: Toll Free: 1-888-770-2633 E-mail: investor.relations@obsidianenergy.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/285474

FAQ

How many shares can Obsidian Energy (OBE) repurchase under the 2026 NCIB?

Obsidian can repurchase up to 6,458,536 common shares under the renewed NCIB. According to the company, that number represents 10% of its public float as calculated on February 17, 2026 and applies over a 12-month period.

When does Obsidian Energy's (OBE) renewed NCIB start and end?

The renewed NCIB runs from March 3, 2026 to March 2, 2027. According to the company, purchases will be made over this 12-month window subject to applicable exchange rules and daily limits.

What daily limits apply to Obsidian Energy (OBE) repurchases on the TSX?

On the TSX, Obsidian is limited to 59,759 shares per day, equal to 25% of its six-month average daily volume. According to the company, one block purchase per calendar week may exceed that daily limit under TSX rules.

Will Obsidian Energy (OBE) cancel shares bought under the NCIB?

Yes; any common shares purchased under the NCIB will be cancelled upon purchase. According to the company, cancellations are the intended outcome to reduce share count and potentially enhance per-share metrics.

How much did Obsidian Energy (OBE) pay under its prior NCIB program?

Under the prior NCIB, Obsidian repurchased 7,144,408 shares at a volume-weighted average price of about $7.16 per share. According to the company, that represented the maximum allowed under the expiring program.

Can Obsidian Energy (OBE) buy shares during blackout periods under the NCIB?

The company established an automatic securities purchase plan allowing purchases during blackout periods in certain circumstances. According to the company, the plan is pre-cleared by the TSX and uses a designated broker at pre-set parameters.