Obsidian Energy (OBE) investor relations material

Executive summary

• Achieved Q2 2026 production of 28,200 boe/d, with a balanced portfolio of light and heavy oil assets and a focus on operational excellence and shareholder returns.

• Completed the $98 million Belly River (Wilson Creek) asset acquisition, adding 2,500 boe/d and 35 net sections, strengthening the Willesden Green platform and Central Alberta Oil Fairway position.

• Increased credit facility by $40 million to $275 million and completed a $75 million add-on to senior notes, enhancing liquidity and financial flexibility.

• Continued active share repurchase program, retiring approximately 23% of shares since 2023, enhancing per-share growth.

• Second half 2026 development program underway with active rigs in Peace River and Willesden Green.

Financial highlights

• Q2 2026 annualized adjusted funds flow from operations (AFFO) reached $294 million, with net debt to AFFO at 1.2x.

• Q2 2026 net debt was $354 million, enterprise value at $1,278 million, and market capitalization at $924 million.

• Q2 2026 AFFO was $73.6 million ($1.10/share), FFO $67.8 million ($1.02/share), and FCF $33.2 million ($0.50/share).

• Netback per boe improved to $33.22 in Q2 2026, with net operating costs at $14.49/boe.

• Net income of $42.0 million ($0.63/share basic) in Q2 2026, up from $15.3 million ($0.22/share) in Q2 2025.

Outlook and guidance

• 2026 production guidance set at 29,000–31,000 boe/d, with 72% oil and NGLs.

• Capital expenditures for 2026 expected at $300–$325 million, with net operating costs of $14.00–$15.00/boe.

• 2026 FFO projected at $310 million, net debt at $395 million, and net debt to FFO at 0.8x by June 2027.

• Expanded $100 million development program for the second half of 2026, with two rigs in Peace River and one in Willesden Green.

• Plans to optimize and integrate Belly River assets, with a six-well program on acquired lands starting in early 2027.