RBC 10:28 AM EDT, 10/17/2023 (MT Newswires) -- RBC Capital Markets said Tuesday that Obsidian Energy Ltd. (OBE.TO)'s growth plan for the Peace River asset is a "key differentiator" for the company.
Obsidian outlined a plan to increase production to 50,000 boe/d by 2026, driven by Peace River's ramp-up to 24,000 boe/d by 2026.
The plan is also underpinned by the Bluesky asset underlying the Clearwater asset, with broader delineation expected to drive inventory expansion over time.
Obsidian expects the plan to be internally funded at US$70/bbl WTI.
RBC also noted that Obsidian's light oil portfolio provides near-term growth financing and longer-term optionality, while its inventory supports medium-term outlook.
RBC reiterated Obsidian's outperform rating and $15.00 price target while noting that the company remains on its Global Energy Best Ideas list and Canadian Small Cap Conviction List.