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Bullboard - Stock Discussion Forum 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... see more

TSX:OBE - Post Discussion

Obsidian Energy Ltd > Time to Maintenance Capex?
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Post by Helloworld on Sep 11, 2024 10:11pm

Time to Maintenance Capex?

What is sustaining capex number? 90 million a quarter is what they are doing in 2024 and it has grown production by about 1500 bpd a quarter. 

To me seems a focused 60 million a quarter would sustain around current production.

60 million a quarter capex would breakeven at 55 wti and fcf over 25 million at 65 wti. That would be a million shares a month in buybacks if they were ok with debt at $400 million...

Why grow if market does not respect it. Spend 30 million a quarter on ncib / sib and see where you are in a year. Either share price appreciates substantially or share count drops to 60 million and you do it again next year.
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