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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

Post by Hendrick3on Oct 16, 2021 9:18am
336 Views
Post# 34013207

Amazing value

Amazing valueThis stock is going to earn $3 Free cash flow per share in 2022. Take your number of shares x $3 and that is the value that will accrue to you next year via debt repayments, stock buybacks and dividends. That is over 60% yield. In terms of why that is not recognized in the share price, it’s a problem across the sector. The reason is not specific to OBE. There is a narrative that oil is done in a couple of years. Now we know that is ridiculous but most investors believe what CNBC tells them. A cold winter, skyrocketing oil and gas prices and eventually massive dividends will bring them back but for now they don’t get it. Patience my friends, the accretion in the shares will happen with increasing realization that oil and gas is a good investment. Your biggest enemy is impatience. Stop looking at the day to day and check back in 6, 12 or 18 months. If you are still not seeing any return via stock price gains or dividends by then, I will be very surprised.
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