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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 Flush11on Jun 16, 2022 6:20pm
220 Views
Post# 34762909

RE:Reading between the lines

RE:Reading between the lines
more or less agree with most of your comments Mr. Bond.

3 areas where we differe are

1. Buybacks would be ok for up to 5-10% of the stock.There are just under 90 million shares and it is widely held not like BNE, PNE or a few otherrs where 3 people or groups control 35% plus.

There are so many historical rollbacks that a lot of odd lots and small positions could be soaked up.

2. I prefer a more focused company that is clearer on their strategy. The 150 million dollar SURPRISE!! spending increase is annoying. Although I really appreciate the thinking that kept hedging to a minimum the risk was absorbed by shareholders but now turned into more spending.

3. Good point on the pricing/cash flow impact.. It would not surprise me if they are starting to freak out about access to drilling equipment. Tie up the rigs now or lose them forever may be in the back of their mind. I would have preferred a clear guidance that this was the direction they were leaning three months ago. But maybe they could have arranged a permanent 2-3 rig program running all year instead of up to 4 rigs.
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