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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 Nov 19, 2021 12:44pm
80 Views
Post# 34146308

RE:WHO HAS THE MONEY TO BUY OUT OBE.?

RE:WHO HAS THE MONEY TO BUY OUT OBE.?
Those least hedged are accumulating cash fastest.

Those least hedged are also often those with lowest debt.

Those are the potential buyers - of those who are hedged, or held back by debt, or who have big useable tax loss pools.

As we move forward, those who increase their dividends, will trade based on yield, and higher share price.    They will be able to use their shares to buy out those who are unable to pay a dividend because of debt or hedges.

From an investment point of view, look for those that do not pay a dividend presently (but will when they can), and those held back by higher debt, and in possession of large tax loss pools.

OBE meets all those requirements - it will either get bought out with an offer of 2-3X current share price, or it will pay down its debt and start paying a dividend, which will take it to 2-3X current share price.   
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