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Obsidian Energy (OBE) investor relations material

Obsidian Energy Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary31 Jul, 2025

Executive summary

  • Strategic focus on production growth, share buybacks, and debt reduction, with capital allocation between Peace River and Willesden Green assets to drive future growth.

  • Pembina asset disposition completed, transforming the asset base, strengthening the balance sheet, and reducing net and decommissioning debt significantly.

  • Achieved Q2 2025 production of 28,943 boe/d and FFO of $65.8 million ($0.94/share), with 7.1 million shares repurchased and cancelled for $51.1 million up to July 29, 2025.

  • All wells from the first half program brought on production, with strong initial results in Peace River and Clearwater.

  • Renewed share buyback program and extended $235 million credit facility into 2027, supporting ongoing capital returns.

Financial highlights

  • Q2 2025 production averaged 28,943 boe/d, down from 38,416 boe/d in Q1 2025 due to the Pembina disposition.

  • Net debt reduced to $270 million at June 30, 2025, from $460 million at March 31, 2025, and $411.7 million at December 31, 2024.

  • Q2 2025 FFO was $65.8 million ($0.94/share), with FCF of $21.6 million; net income was $15.3 million ($0.22/share).

  • Net operating costs improved to $13.54/boe in Q2 2025, down from $15.72/boe in Q1 2025.

  • Capital expenditures totaled $40.2 million in Q2 2025.

Outlook and guidance

  • H2 2025 production guidance: 27,100–28,300 boe/d, with $110–$120 million in capital expenditures.

  • Net operating costs expected at $13–$15/boe; FFO guidance at $113 million for H2 2025.

  • Net debt projected at $295 million prior to NCIB; net debt to FFO ratio at 1.3x.

  • Q2 2025 production and FFO exceeded guidance midpoint due to higher oil prices and lower costs.

  • Second half 2025 capital plan underway, with three rigs in Peace River and a return to Willesden Green planned.

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Frequently asked questions

Obsidian Energy Ltd., formerly known as Penn West Petroleum Ltd. until June 2017, is a company that primarily focuses on the exploration, production, and development of oil and natural gas properties. Its operations are centered in the Western Canada Sedimentary Basin, which is known for its rich natural resources. As a conventional oil and natural gas production and development company, Obsidian Energy has established a portfolio of high-quality assets in this region. The company is headquartered in Calgary, Alberta, and its shares are listed on the NYSE.

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