Obsidian Energy Ltd T.OBE

Amazing value

[Hendrick3]

This stock is going to earn $3 Free cash flow per share in 2022. Take your number of shares x $3 and that is the value that will accrue to you next year via debt repayments, stock buybacks and dividends. That is over 60% yield. In terms of why that is not recognized in the share price, it’s a problem across the sector. The reason is not specific to OBE. There is a narrative that oil is done in a couple of years. Now we know that is ridiculous but most investors believe what CNBC tells them. A cold winter, skyrocketing oil and gas prices and eventually massive dividends will bring them back but for now they don’t get it. Patience my friends, the accretion in the shares will happen with increasing realization that oil and gas is a good investment. Your biggest enemy is impatience. Stop looking at the day to day and check back in 6, 12 or 18 months. If you are still not seeing any return via stock price gains or dividends by then, I will be very surprised.

[kavern23]

Hendrick..have you gotten a sense on when OBE's management will get the refinancing done? With commodity prices so high and the ability to hedge...would make more sense for OBE to wait until April/May of 2022 to get a smaller syndicated credit faculity then do extensions this fall. Paying the USA secured notes first makes sense obviously. I couldnt see OBE needing a total bank faculty of

[Hendrick3]

Kavern, in my exchange with Loukas, he said they would be finished renegotiation/ refinancing by end of first half 2022. I believe this is Loukas' last big project as CEO and the reason for his extension. It should be good news.  I hav been listening to many podcasts recently and especially in regards to the disconnect between energy prices and energy stocks.  Very large portion

[JohnJBond]

It's all about the dividend