Obsidian Energy Announces Third Quarter 2025 Results
Press Release
- Active H2 2025 capital program in Peace River and successful drilling of the first Belly River well in Crimson
- Average production of 27,316 boe per day resulting in funds flow from operations of $49.7 million ($0.74 per share basic) including a $5.5 million mark-to-market impact on share-based compensation
- Increased H2 2025 production guidance to 27,800 – 28,300 boe/d on strong results from our development program
- Commencement of a pre-paid equity forward program to hedge our outstanding share-based incentive plan awards
Calgary, Alberta–(– October 30, 2025) – OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) (“Obsidian Energy“, the “Company“, “we“, “us” or “our“) is pleased to report our operating and financial results for the third quarter of 2025.
| Three months ended September 30 |
Nine months ended September 30 |
||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||
| FINANCIAL | |||||||||||||
| (millions, except per share amounts) | |||||||||||||
| Cash flow from operating activities | $ | 45.4 | $ | 110.3 | $ | 197.3 | $ | 246.9 | |||||
| Basic per share ($/share)1 | 0.68 | 1.45 | 2.81 | 3.23 | |||||||||
| Diluted per share ($/share)1 | 0.66 | 1.40 | 2.74 | 3.10 | |||||||||
| Funds flow from operations2 | 49.7 | 124.7 | 215.6 | 324.3 | |||||||||
| Basic per share ($/share)3 | 0.74 | 1.64 | 3.07 | 4.24 | |||||||||
| Diluted per share ($/share)3 | 0.72 | 1.58 | 2.99 | 4.07 | |||||||||
| Net income | 16.8 | 33.2 | 47.5 | 82.2 | |||||||||
| Basic per share ($/share) | 0.25 | 0.44 | 0.68 | 1.07 | |||||||||
| Diluted per share ($/share) | 0.24 | 0.42 | 0.66 | 1.03 | |||||||||
| Capital expenditures | 65.3 | 85.5 | 233.9 | 259.0 | |||||||||
| Property acquisitions (dispositions), net | 0.3 | – | (210.6 | ) | 84.9 | ||||||||
| Decommissioning expenditures | 7.9 | 6.3 | 18.5 | 20.4 | |||||||||
| Long-term debt | 145.4 | 342.1 | 145.4 | 342.1 | |||||||||
| Net debt2 | $ | 219.3 | $ | 413.6 | $ | 219.3 | $ | 413.6 | |||||
| OPERATIONS | |||||||||||||
| Daily Production | |||||||||||||
| Light oil (bbl/d) | 4,979 | 13,722 | 7,978 | 13,528 | |||||||||
| Heavy oil (bbl/d) | 12,586 | 10,624 | 11,844 | 8,142 | |||||||||
| NGL (bbl/d) | 1,955 | 3,148 | 2,401 | 3,043 | |||||||||
| Natural gas (mmcf/d) | 47 | 73 | 56 | 71 | |||||||||
| Total production4 (boe/d) | 27,316 | 39,714 | 31,518 | 36,587 | |||||||||
| Average sales price (before hedging)1 | |||||||||||||
| Light oil ($/bbl) | $ | 86.67 | $ | 100.09 | $ | 94.56 | $ | 100.94 | |||||
| Heavy oil ($/bbl) | 67.93 | 73.73 | 66.35 | 71.78 | |||||||||
| NGL ($/bbl) | 36.44 | 48.92 | 44.53 | 49.38 | |||||||||
| Natural gas ($/mcf) | $ | 0.91 | $ | 0.86 | $ | 1.77 | $ | 1.51 | |||||
| Netback ($/boe) | |||||||||||||
| Sales price | $ | 51.26 | $ | 59.77 | $ | 55.39 | $ | 60.34 | |||||
| Risk management gain (loss) | (0.33 | ) | 2.16 | 0.02 | 1.56 | ||||||||
| Net sales price | 50.93 | 61.93 | 55.41 | 61.90 | |||||||||
| Royalties | (6.56 | ) | (7.77 | ) | (7.06 | ) | (7.73 | ) | |||||
| Transportation | (4.46 | ) | (4.19 | ) | (4.63 | ) | (4.10 | ) | |||||
| Net operating costs3 | (15.01 | ) | (13.74 | ) | (14.84 | ) | (13.82 | ) | |||||
| Netback3 ($/boe) | $ | 24.90 | $ | 36.23 | $ | 28.88 | $ | 36.25 | |||||
| (1) Supplementary financial measure. See ‘Non-GAAP and Other Financial Measures’. (2) Non-GAAP financial measure. See ‘Non-GAAP and Other Financial Measures‘. (3) Non-GAAP ratio. See ‘Non-GAAP and Other Financial Measures‘. (4) Please refer to the ‘Oil and Gas Information Advisory’ section below for information regarding the term “boe”. |
|||||||||||||
PRESIDENTS MESSAGE
“Coming out of spring break-up, we had an active third quarter focused on rebuilding our production profile post the closing of our Pembina disposition during the second quarter,” commented Stephen Loukas, Obsidian Energy’s President and CEO. “The execution of our second half development program is ahead of schedule, while our development volumes have exceeded our expectations. In Peace River we reached a record 7-day average of ~15,000 boe/d in September. At Willesden Green, we began our program in August drilling our first Belly River well at Crimson. The results from this initial well are very encouraging, with an IP25 of 538 boe/d (76% oil), validating an additional fairway in the emerging Belly River play. As a result of sustained success in our second half development program, we have narrowed our guidance range by increasing the lower end target. Our second half production range is now 27,800 to 28,300 boe/d and we anticipate being in the upper end of guidance. Additionally, water injection began at our Bluesky and Clearwater pilots and we intend to implement this recovery method on a broader scale in the area. We currently plan to accelerate the drilling of two new water injector wells in Dawson during the fourth quarter, which will result in a slight increase to our second half 2025 capital program.”
Mr. Loukas continued, “During the third quarter we disposed of the InPlay Oil Corp. shares we received as partial consideration in our Pembina disposition for $91.4 million. These proceeds were applied against our credit facility, further strengthening our financial position and providing us with significant financial flexibility during this period of elevated volatility in commodity markets. The Board has opted to take advantage of our balance sheet strength by authorizing the execution of a pre-paid equity forward program to hedge the Company’s outstanding share-based incentive plan exposure. Lastly, our concern about short-term oil prices was reflected in our already tempered second half capital program announced in July and we increased our hedged volumes through the balance of the year with approximately two-thirds of our fourth quarter WTI exposure hedged via swaps at ~C$90 per barrel. We will continue to monitor market conditions and consistent with our prior actions are prepared to make further adjustments to our capital program(s), including increasing it when appropriate to do so.”
ILR4
