Obsidian Energy Ltd. (NYSE: OBE)

Obsidian Energy is an intermediate sized oil and gas producer with a well balanced portfolio of high quality assets based in Western Canada. The company focuses on the exploration, development, and production of crude oil, natural gas, and natural gas liquids from properties located primarily in Alberta and British Columbia. As of December 31, 2025 Obsidian Energy employed 148 people and operated a diversified land base that includes both developed and undeveloped acreage. Over recent years the company has pursued a strategy of disciplined capital investment, opportunistic acquisitions, and selective divestitures to strengthen its asset base and enhance shareholder value. Notable transactions include the disposition of its Pembina assets for proceeds of approximately $320 million and the acquisition of additional Peace River production and land for about $80.5 million in cash. The company's oil and gas reserves are detailed in the reserves appendices of the filing.

Obsidian Energy generates revenue primarily from the sale of its produced hydrocarbons. The company sells crude oil, natural gas, and natural gas liquids under a variety of contractual arrangements with customers including spot sales and term contracts. Revenue volumes are reported in barrels of oil equivalent per day and have ranged from about 32,000 boe per day in 2023 to over 37,000 boe per day in 2024 according to the company's guidance. Capital expenditures have been in the range of $260 million to $270 million in 2023, increasing to roughly $345 million to $355 million in 2024, and are directed toward drilling facilities and infrastructure. The company also incurs decommissioning expenditures which were estimated at $26 million to $28 million in 2023 and $23 million to $24 million in 2024. Because revenue is tied to commodity prices, the company's financial performance fluctuates with changes in oil and natural gas markets. All financial information presented in the filing is prepared in accordance with International Financial Reporting Standards.

Obsidian Energy operates as an intermediate sized producer in the Western Canada sedimentary basin, competing with larger integrated firms such as Canadian Natural Resources Limited, Suncor Energy Inc, and Cenovus Energy Inc, as well as other mid size explorers. Its competitive advantages stem from a concentrated asset base with low decline rates, a strong balance sheet that supports flexible financing, and a history of returning capital to shareholders. The company has maintained a syndicated credit facility that was increased to $300 million in 2024 and has also issued senior unsecured notes to manage its debt structure. Through normal course issuer bids, Obsidian Energy has repurchased and cancelled millions of common shares returning cash to investors while reducing outstanding share count. Operational focus on cost control and efficient development enables the company to keep operating expenses competitive relative to peers. The company's independent auditors are KPMG LLP.

Obsidian Energy sells its oil, natural gas, and natural gas liquids to a diverse group of customers that includes pipeline operators, oil and gas traders, refining companies, and energy marketers. The company's production is delivered to downstream markets via third party transportation infrastructure such as pipelines and rail facilities. Specific customer names are not disclosed in the filing but the company's revenue base is broadly diversified across the energy value chain.