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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

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Comment by Bookendson Dec 09, 2019 1:27pm
86 Views
Post# 30436450

RE:RE:26.76% ??

RE:RE:26.76% ??The way I see it, last week's OPEC decision to extend and deepen the cuts gives OBE (as any other O&G company) some breathing room. 

It should easily put a nice support level on WTI at 55$ and reduces the risk of another Q4 2018 fiasco. 

It allows for OBE to operate profitably for another 4 months while the government continues to work at fixing the sector's issue. 

I personally, however, am more concerned about the risk of getting "Pengrowthed", Hendrick... We are safe until November 2020, but it's hard to predict what will happen afterwards... If there are no progress made on the Canadian sector's issue, lenders might force them to do a similar move. Personally, I wouldn't put it passed this BOD, if the proper shareholders would want to make a similar move and steal the assets from the rest of us.

In any case, yes, it's definitely a move from the MaSSIVELY undervaluation the market gives this stock...   

The stock was at 1.5$ CAD the day the board announced the start of the strategic review... And the stock actually dipped all the way down to 50c CAD since that time... I personally don't see any reason why it shouldn't had stayed at 1.5$ CAD, but the manipulation and fear factor was able to push it down that much.

I think the OPEC's decision probably has forced some to come back to their senses and might have ended some of the games this stock has been victim of.

I really look forward to the results of the strategic review... If the company could find a strategic partner and sale a good portion of Cardium to significantly reduce the debt, the stock could easily triple from here... Especially if they can also dispose some of the less producing assets like the Peace river/ Deep Basin and Viking simultaneously to eradicate the debt entirely.   

Hendrick3 wrote: It has been massively undervalued. It was trading at about 10% of its 52 week high and its fundamentals are much better than at the time of that 52 week high. It's been a mystery why it has lagged so badly so in essence, people are starting to wake up. I think it's a 5-10 bagger from here in the next two years but the trolls on this site will tell you it's going to zero. Have a look at the fundamentals. It will have FFO of $2.00 this year. New well results are great and oil price looks poised to rise they have suffered greatly from comparisons to Pengrowth although they are not at all alike. 


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