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Obsidian Energy Ltd T.OBE

Alternate Symbol(s):  OBE

Obsidian Energy Ltd. is a Canada-based exploration and production company. The Company operates in one segment, to explore for, develop and hold interests in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin directly and through investments in securities of subsidiaries holding such interests. It has a portfolio of assets producing around 35,700 barrels of oil equivalent (boe) per day. Its operating areas include Cardium, Peace River and Viking areas of Alberta. Its Cardium asset is a fully delineated and de-risked asset. It is focused on manufacturing repeatable low-decline and high-netback light-oil wells across its Cardium land base. The Viking is a light oil, horizontal development play located in central Alberta. Its operations are focused on the Esther area. Peace River is a stable, cold-flow, base production asset. It operates on a contiguous and an acreage within the heart of the Peace River Oilsands region.


TSX:OBE - Post by User

Bullboard Posts
Comment by krashzoneon Aug 28, 2017 1:18pm
228 Views
Post# 26628712

RE:RE:Whats has hapened to this stock??

RE:RE:Whats has hapened to this stock??Between low oil prices and the Trudeau government's percieved anti-energy policies, there is an accute lack of interest in Canadian energy producers. OBE has an added strike against it in the fact that the old Penn West was nearly run into the ground over the last decade or so by its previous management.

The lack of interest by institutional investors and the corresponding low volumes means that short interest will have its way.

At some point, the valuation will speak for itself. This thing is trading at less thana third of its book value (some might say its a value trap). They also have the CAD strength against it. They need $45 WTI to break even and $50-$55 to implement their growth plan. Until we see oil prices break $50, this thing will languish.

By the way - to the guy that posted that this thing has a high debt level, the P/B ration takes into account assets AND DEBT. This ratio currently sits at 0.3.

To paraphrase some smart guy, "Be greedy when others are fearful....".

Bullboard Posts