Stifel First Energy Update 11:24 AM EDT, 08/03/2022 (MT Newswires) -- Stifel FirstEnergy on Wednesday maintained its buy rating on the shares of Obsidian Energy (OBE.TO) while trimming its price target to C$19.00 from C$19.50 after the oil and gas producer reported second-quarter results.
"With an earlier operational update hinting at the major 2Q22 operational and financial markers, Obsidian's 2Q22 formalized results were largely drama-free," analyst Cody Kwong writes. "With the company's recent refinancing event now also in the rearview mirror, this should help focus the markets' attention on 2 key themes from now till the end of the year. The first, being the continued evaporation of its net debt balance 36% y/y. The second being an underappreciated production growth trajectory of over 30% (4Q22/4Q21). We are modestly revising our target price from $19.50/sh to $19.00/sh with recent oil price weakness, however reaffirm our BUY recommendation with OBE representing one of the torquiest names through both its operational and financial leverage characteristics."