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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 Hendrick3on May 11, 2021 12:54pm
237 Views
Post# 33174342

RE:RE: 1QFFO/ share compared to share price- Industry comparison

RE:RE: 1QFFO/ share compared to share price- Industry comparison

Your point is valid which makes ATH even more overvalued on a relative basis. In regards OBE, their net debt is $455 which is slightly higher than ATH but they produced 12 times the funds flow per share. Market cap of ATH close to $400 million. OBE is under $150 million. 

Any way you slice it, the valuation of OBE is massively undervalued relative to these other players. 

I also did an analysis some weeks back looking at reserve report NPV's less net debt relative to share price. These reserve report values have consistent price decks and subtracting the net debt takes into account the leverage. I can repost the results of that or you can scroll back 3 pages and see it for yourself. Just looking at PDP reserves. OBE's value is $3.70 per share after net debt and ATH is at 18 cents. Every player I looked at in the industry is trading around 2 to 3 times this number and only three names came up less than this calculation, OBE, IPO and YGR. Have a look, you might see my point. 

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