OBSIDIAN ENERGY LTD. (OBE) SEC Filings

OBSIDIAN ENERGY LTD. (OBE) director Michael Faust filed a notice of proposed sale under Rule 144 for up to 40,200 common shares of the company. The shares are held through Charles Schwab and are associated with an aggregate market value of $485,616.00, with 67,274,326 shares outstanding cited for the issuer.

The common shares were acquired on August 6, 2024 in an open market purchase for cash and are listed on the NYSE.

A group led by Kernwood Limited reports updated beneficial ownership of Obsidian Energy Ltd. common shares. Kernwood, an Ontario investment company controlled 50/50 by Edward and Elizabeth Kernaghan, beneficially owns 4,083,414.00 shares, representing 6.1% of the outstanding common shares, with sole voting and dispositive power over those shares.

Edward H. Kernaghan is deemed to beneficially own 4,168,766.00 shares, or 6.2%, reflecting his individual holdings plus shared power over Kernwood’s position. Elizabeth Kernaghan is reported with shared voting and dispositive power over Kernwood’s 4,083,414.00 shares (6.1%.). Other family members hold much smaller direct positions.

Since the prior amendment dated October 21, 2025, Kernwood purchased 634,900 Obsidian Energy shares for an approximate total of $5,298,738.78, funded from Kernwood’s working capital. Purchases occurred between October 31, 2025 and August 5, 2026 at average prices ranging from about $7.71 to $12.785 per share. The group describes the investment as made in the ordinary course of business, with a view toward investment, while reserving flexibility to buy or sell additional securities and potentially consider proposals, including seeking representation on Obsidian Energy’s board.

Obsidian Energy Ltd. reported Q2 2026 results in Canadian dollars. The company generated adjusted funds flow from operationsnet income of $42.0 million ($0.63 per share basic). Average production was 28,200 boe/d, slightly below 28,943 boe/d a year earlier, while the average sales price rose to $77.17 per boe and corporate netback increased to $33.22 per boe despite realized hedging losses.

Capital expenditures were $39.1 million and free cash flow was $33.2 million. On June 30, Obsidian closed the $98.0 million Belly River light-oil acquisition adding about 2,500 boe/d and 35 net sections of land, funded with its credit facility. Net debt rose to $353.6 million at June 30, 2026, as the company expanded its $275.0 million syndicated credit facility, added senior unsecured notes and continued its normal course issuer bid and prepaid equity forward program covering 5.21 million shares.

Obsidian Energy closed a private add-on of $75.0 million aggregate principal amount to its existing 8.125% senior unsecured notes due December 3, 2030. The additional notes were priced at 102.75% of face value, plus accrued interest, for gross proceeds of $77.9 million and an effective yield of 7.186%.

The notes are direct senior unsecured obligations ranking equal with all other present and future senior unsecured indebtedness of the company and were issued under a supplemental indenture to the existing trust indenture. Net proceeds will repay indebtedness under the syndicated credit facility, fund general corporate expenses and pay transaction costs. Following this issuance, total senior unsecured notes outstanding increased from $175.0 million to $250.0 million.

Obsidian Energy Ltd. is increasing its long-term debt by entering into an underwriting agreement for a private placement of an additional $75.0 million aggregate principal amount of its existing 8.125% senior unsecured notes due December 3, 2030. After closing, the total principal amount of these notes will rise from $175.0 million to $250.0 million. The new notes will be issued at a price of 102.75, implying an effective yield of 7.186% and generating gross proceeds of $77.1 million.

The notes will be issued under a supplemental indenture and will rank as direct senior unsecured obligations, equal to Obsidian Energy’s other senior unsecured indebtedness. Closing is expected on or about July 22, 2026, subject to customary conditions. Subject to completion, net proceeds are expected to be used to repay indebtedness under the company’s syndicated credit facility, fund general corporate expenses, and pay related transaction costs. The offering is being conducted on a private placement basis in Canadian provinces only, relying on exemptions from prospectus and registration requirements, and the notes are not registered under U.S. securities laws or offered in the United States.

Obsidian Energy Ltd. entered into a First Amending Agreement to its April 28, 2026 credit agreement with Royal Bank of Canada, Bank of Montreal and ICBC Standard Bank Plc. The amendment increases the maximum principal amount of the Syndicated Facility from Cdn.$210,000,000 to Cdn.$250,000,000.

The Borrowing Base remains at Cdn.$300,000,000, so this change primarily raises the portion currently available under the syndicated tranche. Schedule A now reflects updated individual lender commitments, with total Aggregate Individual Commitments of Cdn.$275,000,000, including a Cdn.$25,000,000 Operating Facility.

The lenders agree to reallocate existing CORRA Loans so each lender’s exposure matches its revised rateable portion, without any breakage fees or other costs to Obsidian for that reallocation. The company provides customary representations (including no Default or Event of Default) and pays each lender a fee based on the increase to its commitment.

Obsidian Energy closed its previously announced Belly River light oil acquisition in the Willesden Green area for approximately $98 million, funded through its credit facilities. The deal adds about 2,500 boe/d of mainly light oil production and 35 net sections of land.

The Company raised its 2026 average production guidance to 29,000–31,000 boe/d, from 27,900–29,900 boe/d, while keeping capital spending at $300–$325 million. Based on updated commodity assumptions, 2026 funds flow from operations is now estimated at $310 million ($4.64/share), with free cash flow at about -$14 million and net debt rising to $395 million, implying net debt to FFO of 1.3x and a projected 0.8x at June 30, 2027. Management is targeting approximately 22% total production growth and 28% light oil growth in 2027, supported by a planned six-well program on the acquired lands.

Obsidian Energy Ltd. increased the aggregate amount available under its syndicated credit facility to $275 million, up from $235 million. This additional borrowing capacity is intended to support the closing of its previously announced Belly River acquisition and to fund its second half capital program.

The revolving period and maturity dates for the facility remain unchanged, with the revolving period ending on May 31, 2027 and the term maturity on May 31, 2028. Management describes the expansion as enhancing financial flexibility and strengthening the balance sheet as the company pursues its strategic objectives in Alberta oil and gas assets.

Obsidian Energy is acquiring high-return Belly River light oil assets in the Wilson Creek area of Willesden Green for an unadjusted $105 million in cash, or about $96 million net of estimated closing adjustments. The deal adds roughly 2,500 boe/d of production (76% oil) and 35 net sections of land, making the company the largest Belly River producer and described as immediately accretive to funds flow from operations.

The acquired assets carry proved plus probable reserves of 13.6 MMboe with a 2P acquisition cost of $17.20/boe including future development capital and a 2P reserve life index of about 15 years. A planned six-well program in 2027 is expected to lift acquired production to around 3,000 boe/d, generating approximately $45 million in net operating income and $15 million of free cash flow at US$72.50/bbl WTI. Pro forma, corporate production is projected at about 31,400 boe/d with higher liquids weighting, while net debt to funds flow from operations is projected near 1.1x at year-end 2026, indicating the balance sheet remains conservative.