High-quality assets and experienced team delivering exceptional growth

With a proven track record as an efficient, highly successful operator, our high-quality portfolio of assets and experienced team continue to deliver value to all our stakeholders.

Obsidian Energy is an intermediate-sized oil and gas producer based in Calgary, Canada, with a well-balanced portfolio of high-quality assets in Alberta’s Peace River, Willesden Green/Pembina (Cardium) and Viking areas. Currently producing over 32,000 boe per day, our principal business consists of the responsible exploration, development and production of petroleum resources, providing energy to fuel our economy and support our communities. With the execution of our three-year corporate plan, production is expected to reach 50,000 boe/d in 2026, primarily from growth from the Peace River asset. The successful execution of our plan redefines the Company and generates significant value for all stakeholders.

With a proven track record as an efficient, highly successful operator, our unique portfolio of assets and experienced team continue to deliver value to all our stakeholders. We are proud of our commitment to strong ESG practices that include minimizing our environmental impact, creating a culture where the individual and our communities are valued, and implementing best-in-class governance practices to ensure we are acting in the interests of our stakeholders.

HIGHLIGHTS

Focused strategy to grow production to 50,000 boe/d by 2026, maintain operational excellence, improve our debt leverage, and deliver compelling shareholder returns
  • Growing Production:  Low decline, oil-weighted asset base with significant underlying reserves; three-year plan grows production to 50,000 boe/d by 2026
  • Vast Heavy Oil Asset:  Source of significant growth potential with low decline Bluesky production and Clearwater play upside
  • Substantial Light Oil Assets:  Largest acreage holder in low decline, light oil assets that generates highly economic returns
  • Solid Free Cash Flow:  Free cash flow to be used for reinvestment into Peace River growth opportunities and return of capital
  • Strong Reserve Life:  Stable foundation of PDP reserves with a 2P reserve life index (RLI) of 13 years
  • Financial Strength:  Senior/junior debt structure provides ongoing operating liquidity with low debt leverage
  • Sustainability Focus:  Committed to strong ESG practices

OUR STRATEGY

Obsidian Energy is focused on driving shareholder value through asset development, using excess free cash flow to act on growth opportunities and provide a return of capital to shareholders.

Our strategic priorities include significant production growth, delivering strong total shareholder returns, maintaining operational excellence, and improving our leverage ratio. Our three-year corporate growth plan  is expected to generate significant value for all stakeholders:

  • Heavy Oil: 
    Peace River: With over 500 sections of long license tenure, low decline land, our heavy oil Bluesky asset with Clearwater upside provides substantial production growth, cash flow generation and opportunity for continued development with significant future inventory potential.
  • Light Oil:
    Willesden Green/ Pembina (Cardium): Our industry leading Cardium position offers a predictable, liquids weighted, production profile that is capable of generating growth and sustainable free cash flow with over 25 years of drilling opportunities.
    Viking:  A light oil development play, our Viking asset provides highly economic returns through low-risk infill and step-out development locations

We pride ourselves on being flexible and responsive to changes in the industry, using the optionality in our asset base to adjust our short-term strategy to attain the optimal return for the Company and shareholders. With a stable debt structure that provides appropriate operational liquidity and a longer-term maturity profile, the Company anticipates being well positioned to facilitate return of capital plans and continue developing our strong portfolio of assets while being able to act on new opportunities to our shareholders’ benefit.

GROWING PRODUCTION TO 50,000 BOE/D IN 2026

Our three-year strategy is focused on growing Peace River production and per share metrics, with options to return capital to shareholders and/or further reduce debt levels

Announced in 2023, our three-year corporate growth plan is designed to maintain production levels in our Willesden Green and Pembina (Cardium), and Viking light oil businesses, and use the significant FCF to fund growth in our heavy oil business at Peace River. Key highlights of the plan include:

  • Annualized production growth rate of 16% – We expect our production to grow steadily over the three-year period, reaching 50,000 boe/d in 2026, while maintaining a 25% flat annual corporate decline rate. 
    – Our light oil production will remain stable at approximately 26,000 boe/d while the Peace River asset grows substantially from 6,600 boe/d to 24,000 boe/d. 
  • Significant inventory remains for growth post 2026 – In total, our plan anticipates drilling 346 (318.3 net) wells over the three-years, leaving ample inventory remaining for future development.
  • Increased FFO – With year-over-year production growth and an increasing liquids weighting, we expect our FFO to grow from $440 million in 2024 to $655 million in 2026 (at WTI of US$75.00/bbl).
  • Higher FCF generation – Capital expenditures of $1.2 million expected to generate $291 million of free cash flow from 2024 to 2026 at WTI of US$75.00/bbl.
  • Substantial flexibility and optionality – With full ownership of our Peace River land, we control the pace of development and can quickly respond to changes in commodity prices.

Additional details concerning our three-year growth plan can be found in the September 2023 news release and associated presentation and webcast.  

OUR VALUES AND PURPOSE

Obsidian Energy is a company based on discipline, relentless passion for the work we do, and resolute accountability to all our stakeholders. In carrying out our business, we strive to act in a manner that supports our culture and hold each other accountable to comply with our shared values.

KEY CORPORATE INFORMATION

‘Obsidian Energy’ is named after a naturally occurring volcanic glass with a similar sheen to crude oil. Obsidian is created through a geological process transforming into a substance of strength, dependability, and longevity.

Like the mineral we are named after, the Company has gone through several corporate changes throughout its history. Through these changes, we have simplified our corporate structure to better facilitate our business and make Obsidian Energy stronger and better.  The key corporate transactional dates in our recent history are shown below.

  • July 27, 2022:  Completed private placement of senior unsecured notes
  • January 26, 2022:  OBE began trading on the NYSE American exchange
  • November 2, 2021:  Acquired remaining 45% interest in the Peace River Oil Partnership
  • June 10, 2019:  Trading on post-consolidation (reverse split) basis (7:1 basis) commences; approved at 2019 AGM
  • June 26, 2017:  The Company’s shareholders formally approved an amendment to its articles, changing the name of the company from Penn West Petroleum Ltd. to Obsidian Energy Ltd.
  • December 30, 2013: Deadline for Penn West Energy Trust unitholders to convert trust units into common shares of Penn West Petroleum
  • January 1, 2011:  Penn West Energy Trust converted back into the corporate entity of Penn West Petroleum Ltd.; each trust unit traded for one common share

For any corporate changes prior to 2011, please review our corporate filings on SEDAR+ or EDGAR or contact our transfer agent.