Obsidian Energy Ltd T.OBE

Stifel First Energy Update

[Darwyn]

11:24 AM EDT, 08/03/2022 (MT Newswires) -- Stifel FirstEnergy on Wednesday maintained its buy rating on the shares of Obsidian Energy (OBE.TO) while trimming its price target to C$19.00 from C$19.50 after the oil and gas producer reported second-quarter results.

"With an earlier operational update hinting at the major 2Q22 operational and financial markers, Obsidian's 2Q22 formalized results were largely drama-free," analyst Cody Kwong writes. "With the company's recent refinancing event now also in the rearview mirror, this should help focus the markets' attention on 2 key themes from now till the end of the year. The first, being the continued evaporation of its net debt balance 36% y/y. The second being an underappreciated production growth trajectory of over 30% (4Q22/4Q21). We are modestly revising our target price from $19.50/sh to $19.00/sh with recent oil price weakness, however reaffirm our BUY recommendation with OBE representing one of the torquiest names through both its operational and financial leverage characteristics."

[JohnJBond]

This is interesting timing  Almost a week after the Q2 release they put out their analysis - part of which is a 2.5% drop in their 12 month target price  Normally this analysis would be distributed internally before the market opened on the day it was released   One wonders why they held it back?

[Darwyn]

Not sure there is anything nefarious in timing, given August long weekend. Price adjustment figures to be oil volatility on the short end. Someone is trading it and it is off almost 10 % on decent volume. Loukas is an investment banker and not an operator so has no desire to be in this long term. He already knows the production number and the exit price he has in mind. TBD who the dance partner