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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

Comment by JohnJBondon May 06, 2022 3:29pm
108 Views
Post# 34663209

RE:The Ugly is the Management Compensation Plan

RE:The Ugly is the Management Compensation PlanThe share based compensation plan was there for all to see months ago.  

Unfortunately, some didn't bother to look, or didn't beleive what they were told.    If they are upset now, then they are acting out on their own ignorance.    Its better to have those types dump their shares.   They will come back later once the share price is rising.

FYI.     The share based compensation plan is accounted for in cash because at the time it was created, the share price was so low that it would have seriously diluted the shares outstanding.   Cash accounting was better for shareholders.

Now the share price is much higher.    Before long it may be double what it is now, then double again.

At these higher share prices the company will likely change its compensation plan to be paid in shares which will have a minimal impact on dilution.   Shares give better employee incentives.   This is what other companies do.    It doesn't show up in FFO so shareholders don't notice.

That is already an option with the existing plan (payment in shares).

At the AGM, I would not be surprised to see the plan change to one that is share based only.    This would likely change the way in which it is accounted - no longer being a FFO component.
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