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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 Mar 23, 2022 5:05pm
106 Views
Post# 34539379

RE:RE:RE:Trading Patterns

RE:RE:RE:Trading PatternsNutsac, it sounds like you are confusing refinancing with a debt syndicate or single lender, vs selling debintures into the market, then using those funds to pay out the existing debt syndicate.

OBE is selling debintures.

Debintures are priced based on risk.    The greater the risk, the greater the interest rate.    They trade just like shares.

Debinture buyers don't get to dictate terms like hedges, etc.    They have zero say in anything the company does, unless the interest payment is missed.

Selling debintures will come with zero additional shares (they are not going to be selling convertable debintures), nor will it come with any special hedging requirements.

In fact, it may reduce hedging, because the lender for the recent minority PROP purchase funds required specific hedges be put on place for the year following that loan.     This lender is one of those being paid out.    The hedges will already be in place.    When this loan is repaid, OBE will be free to undo those hedges if it wishes.
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