Welcome to our dedicated page for Obsidian Energy news (Ticker: OBE), a resource for investors and traders seeking the latest updates and insights on Obsidian Energy stock.
Obsidian Energy Ltd. (TSX: OBE, NYSE American: OBE) is an intermediate-sized oil and gas producer focused on crude petroleum extraction in the Western Canada Sedimentary Basin. This news page aggregates the Company’s public announcements, providing context on its operations, capital programs and financial position.
Recent Obsidian Energy news has highlighted active development in its core Alberta assets at Peace River, Willesden Green and Viking. Updates describe drilling and completion activity in the Bluesky and Clearwater formations at Peace River and in the Cardium, Belly River and Mannville formations at Willesden Green, along with infrastructure projects intended to support these plays. The Company also reports on waterflood and enhanced oil recovery pilots, including the commencement of water injection at Bluesky and Clearwater projects.
Investors following OBE news can see regular quarterly results releases that cover production volumes by product type, funds flow from operations, capital expenditures, netback metrics and net debt levels. Obsidian Energy also uses news releases to announce asset dispositions, such as the sale of its operated Pembina assets, and the monetization of its equity position in InPlay Oil Corp., as well as the application of proceeds to repay bank debt and support share repurchases under its normal course issuer bid.
Capital structure developments are another key theme in Obsidian Energy’s news flow. The Company has issued new senior unsecured notes due in 2030, launched offers to purchase and partial redemptions of existing notes due in 2027, and reported on its syndicated credit facility balances. Commodity price risk management, including WTI, differential and AECO hedging positions, is also discussed in operational updates. For readers tracking OBE, this page offers a consolidated view of these operational, financial and corporate developments over time.
Obsidian Energy (TSX: OBE) (NYSE American: OBE) has announced an increase in its syndicated credit facility to $300 million from $260 million. This expansion comes with the addition of ICBC Standard Bank Plc. to the company's banking syndicate. The revolving period and maturity dates remain unchanged at May 31, 2025, and May 31, 2026, respectively.
The company has utilized this increased credit facility to substantially repay its term loan, reducing the outstanding amount to $10 million. The term loan, which matures on June 26, 2025, is expected to be fully repaid before that date using internally generated cash flow. Originally, the $50 million term loan was used to partially fund Obsidian's Peace River asset acquisition in June 2024.
This financial move aligns with Obsidian Energy's objectives of enhancing liquidity, supporting Peace River production growth, and facilitating its return of capital strategy.
Obsidian Energy (TSX: OBE) (NYSE American: OBE) has revised its 2024 guidance, increasing production estimates to 37,000-37,400 boe/d due to strong drilling results. The company has also reduced capital expenditures by $15 million, reallocating funds towards share buybacks and debt reduction. Key changes include:
- Increased production guidance to 37,000-37,400 boe/d (15% increase from 2023)
- Reduced capital expenditures to $320-335 million
- Increased Funds Flow from Operations (FFO) to $420 million
- Increased Free Cash Flow (FCF) to $69 million
- Lowered net debt to FFO ratio to 0.9 times
The company has adjusted its drilling program, adding Clearwater development wells in Peavine and exploration wells at Gift Lake. Obsidian Energy expects to rig release 68 (67.4 net) wells in 2024.
Obsidian Energy has announced strong operational results and upwardly revised guidance for 2024.
August average production increased to 40,000 boe/d, with Peace River contributing 11,500 boe/d.
Revised 2024 production guidance is now 36,400 - 37,000 boe/d.
Operational highlights include:
1. Drilling results exceeding expectations with 14 operated wells released and 10 on production since June.
2. Peace River's Clearwater formation showed better production rates, with significant contributions from Bluesky formation fields, such as Harmon Valley South and Walrus.
3. Revised FFO increased by $10M to $415M, and FCF by $5M to $52M.
Obsidian is on track to reach 50,000 boe/d production by 2026, but is cautious due to market volatility and share price discount.
Updated 2024 guidance maintains a WTI forecast of $75/bbl, with net debt to FFO at approximately 1.0 times.
Obsidian Energy (TSX: OBE, NYSE American: OBE) has filed a resale shelf registration statement with the U.S. SEC for administrative purposes related to the holdings of President and CEO Stephen Loukas and Board member John Brydson. This filing, made on August 2, 2024, allows them to deposit up to 668,933 common shares into U.S. brokerage accounts and resolve administrative issues due to their status as company affiliates. The registration does not imply any immediate intention to sell the shares, and Obsidian Energy will not receive proceeds from any potential sales. The registration is pending SEC effectiveness and is not an offer to sell or buy the securities.
Obsidian Energy has announced robust Q2 2024 results, seeing a 15% year-over-year growth in average daily production to 35,773 boe/d and a 41% increase in funds flow from operations per share, reaching $115.2 million ($1.51 per share).
Highlights include the completion of the Peace River Clearwater acquisition, adding 148 net sections and 1,700 boe/d to their production. The company executed an active first half with 34 operated wells released, and 33 wells brought online. The capital program saw expenditures of $59.2 million, a 49.9% increase from Q2 2023.
Obsidian also repurchased 0.8 million shares for $8.7 million, signaling a strong buyback program. Net income rose significantly to $37.1 million ($0.48 per share).
The company faces increased net debt to $432.5 million, primarily due to the acquisition. However, FFO growth and higher production volumes are expected to decrease this ratio in H2 2024.
Obsidian Energy (TSX: OBE) (NYSE American: OBE) has announced the release date for its second quarter 2024 financial and operational results. The company will publish the results before North American markets open on Thursday, August 1, 2024. Investors and analysts can expect to find the second quarter management's discussion and analysis and the unaudited consolidated financial statements on Obsidian Energy's website, as well as under its SEDAR+ and EDGAR profiles, around the same date. This announcement provides stakeholders with a clear timeline for accessing important financial information about the company's performance in Q2 2024.
Obsidian Energy has completed its acquisition of Clearwater production assets and 148 net sections of land in the Peace River area, amounting to approximately 1,700 boe/d of oil production, as of April 2024. The acquisition, valued at $80.5 million, was funded through the company's syndicated bank facility and a $50 million term loan maturing in June 2025. CEO Stephen Loukas highlighted the strategic benefits of the acquisition, which includes 200 identified drilling locations, with 103 locations on trend with the company's successful Clearwater Dawson development. The acquisition fits into Obsidian's 2024-2026 corporate growth plan.
Obsidian Energy announced the acquisition of Peace River Peavine and Gift Lake assets, adding 1,700 boe/d of Clearwater production and 148 net sections of land for $76 million. This acquisition increases Obsidian's land position to over 680 net sections with Clearwater and Bluesky oil rights. The deal is expected to close by July 14, 2024, funded through debt financing.
The 2024 guidance has been revised to reflect reduced capital expenditures and increased production. The acquisition is expected to improve production efficiency and diversify future development programs. The revised 2024 production target is 36,400 boe/d, up from 32,275 boe/d in 2023.
Key financial updates include an increase in funds flow from operations to $405 million and free cash flow to $47 million. Capital expenditures are reduced to $330-$340 million, with net debt revised to $395 million by year-end 2024.
Obsidian Energy announced robust results from its 2024 development program, exceeding expectations in both the Peace River and Willesden Green/Pembina assets. The company has brought 30 (29.4 net) operated wells into production, with field estimates showing a production increase to over 35,500 boe/d. Without shut-in production due to blockades, this would be approximately 40,000 boe/d.
Key highlights include the Peace River Dawson Clearwater area’s production of 1,330 boe/d over the last 30 days and the Pembina Cardium Unit#9 wells' initial 30-day production rate of 403 boe/d per well. The company also completed exploration and appraisal drilling in Peace River, revealing valuable incremental information for future development. The light oil development in the Cardium region continues to yield strong production rates, contributing significantly to cash flow.
Obsidian's CEO, Stephen Loukas, expressed satisfaction with the results, emphasizing the technical team's ability to access high-quality reservoirs and improve drilling outcomes. Additionally, the company completed a land acquisition in Peace River, planning to drill its first Bluesky well on the new lands in Q1 2025.
Obsidian Energy announced the voting results from the 2024 Annual and Special Meeting of Shareholders where all resolutions were approved. KPMG LLP was appointed as the auditor for the ensuing year, and seven nominees were elected as directors. An advisory resolution on executive compensation was also approved. The company held a webcast presentation for investors and stakeholders.
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