OBE · Obsidian Energy Ltd.

Obsidian Energy's Q1 2026 results reflect the impact of the prior-year Pembina Disposition, which reduced production volumes significantly, particularly light oil (down 51% to 6,189 bbl/d) and natural gas (down 31% to 48 mmcf/d), leading to lower production revenues of $148.7 million versus $211.0 million in Q1 2025. Funds flow from operations of $61.0 million exceeded budget, supported by stronger March oil prices amid Middle East conflict, but declined year-over-year due to lower output. A $49.8 million risk management loss from rapid oil price rises in March contributed to the $18.7 million net loss, contrasting with Q1 2025 income. Netback compressed to $26.76/boe from $33.10/boe on lower sales prices and higher relative operating costs post-disposition. Capital spending of $79.7 million funded active drilling in Peace River (Clearwater/Bluesky) and Willesden Green (Belly River/Cardium), plus waterflood pilots, yielding strong initial rates like 306 boe/d IP23 at West Dawson. Net operating costs improved to $14.60/boe, aided by lower-cost assets retained. Balance sheet shows net debt at $279.8 million after capex and $18.1 million NCIB buybacks (~1.5 million shares), with syndicated facility reaffirmed at $235 million borrowing base. Management highlights robust well results and plans a material H2 2026 capital increase for high-netback oil growth, signaling confidence in elevated oil prices and waterflood upside, with revised guidance forthcoming May 25.