Obsidian Energy Ltd. Price & Performance (OBE)

Obsidian Energy has finalized the $320 million sale of its Pembina assets, using the proceeds to slash debt to approximately $30 million and extend its credit facility. The transaction also increased Obsidian’s stake in Willesden Green Cardium Unit #2 to nearly 100%, while gaining a significant equity position in InPlay Oil.12

Both Raymond James and RBC have downgraded Obsidian Energy, reducing their price targets to C$10 amid sector challenges and revised oil forecasts. The consensus now stands at 'hold,' reflecting a more cautious outlook for the company despite recent financial improvements and asset sales.34

Obsidian Energy reported a 16% jump in 2024 production, reaching over 37,000 barrels of oil equivalent per day. The company’s capital plan and successful asset divestitures have boosted liquidity, positioning it to focus on development in its Peace River asset and maintain operational flexibility.56