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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 May 21, 2022 7:43pm
184 Views
Post# 34700706

RE:RE:Dividend yield

RE:RE:Dividend yieldMe too.

It looks to me like they can do about $150 million a quarter in FFO in Q3 and Q4 - ie about $300 million in H2.

Making some assumptions.

Assume Capex is increased from $45 million to $150 million in H2 (thats a generous increase)

That leaves about $150 million in free FFO in H2.

If they paid out $82 million in dividends - that would leave about $68 million for corporate purposes (working capital, buying back debt, remediation, performance bonuses etc - ie plenty).

$82 million in dividends in H2 would be equivalent to a $2 annualized dividend.    

Apply the same market based dividend yield as CJ is getting right now, and you get a share price in the low $30's (just like that!)

CJ hasn't even paid a dividend yet, they just declared one.

I'm excited too.

2 1/2 weeks ago, OBE stated they would update on their refinance within 5 weeks (ie within 2 1/2 weeks from today)

That refinancing is all that is stopping OBE from declaring a dividend of its own.

It follows that OBE could declare a dividend within a few weeks that would tripple the share price. 

Enough to make short sellers nervous.
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