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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 churchofnutsaccon Mar 18, 2022 2:54pm
134 Views
Post# 34526294

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Kavern 23

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Kavern 23Why would Bonterra engage in buybacks? It already has the tightest float in the patch. Where most O&G companies were blowing their brains out on dillution (and debt), Bonterra opted instead for just debt.

Bonterra has historical monthly yields that range from 3-8% dating back to the 90s. Bonterra was expressly known as a dividend stock for years and the yields will come back once debt is taken care of. All you have to do is zoom out on the Bonterra chart in order to see into the future.

At $100 oil Bonterra has $7.5 billion (1P) and $10 billion (2P) worth of reserves in the ground with only 35 million shares. Obsidian couldn't take Bonterra out at $2 and they aren't going to take Bonterra out at $20.

All that being said, Bonterra has a lot of debt, including debt with the government that prevents them from paying a dividend until its paid back. 

I think the market is mispricing both Bonterra and especially Obsidian. Both have bright futures ahead.
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