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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 Tim14235on Mar 15, 2022 10:33am
187 Views
Post# 34514890

Im back in

Im back inBeen waiting for this pull back.   The board raised max hedge to 80% for a reason.  I expect april and may at the very least to be near 80% and hopefully more months after at a lessor portion.   We are about to finance.  Those hedges just gave more surety to the debt profile.    The key is to get rid of capital return restrictions of our notes.  With that gone, and a long term debt profile, you simply start paying a small div or buyback shares.  All possible with 85+ oil with my math. 

The risks around this investment is macro.  But real rates are still negative so you can sit out and think the world will boil over and loose on inflation or take a company that is literally months away from a capital return.   Frac spreads are still down.  US production aint climbing fast.  Saudi and russia remain steadfast.

Do not forget that the market has not awoken to our massive clearwater position.  It is only starting to show up on the comp maps.  We should have results soon too.




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