Obsidian Energy (OBE) investor relations material

Executive summary

• Q3 production averaged 28,113 boe/d; FFO was $86.7 million, adjusted FFO was $80.7 million and net debt was $363.3 million.

• Belly River production exceeded expectations as development and Clearwater waterflood programs advanced; December exit production guidance was reaffirmed at ~31,000 boe/d.

Financial highlights

• Q3 operating cash flow was $87.0 million versus $45.4 million YoY; FFO was $86.7 million versus $49.7 million.

• Adjusted FFO was $80.7 million ($1.22/basic share), versus $55.2 million ($0.82/basic share), excluding a $6.0 million share-based compensation recovery.

• Net income was $18.0 million, or $0.27/basic share, versus $16.8 million, or $0.25/basic share, YoY.

• Q3 capital expenditures were $75.6 million and decommissioning expenditures were $4.0 million; FCF was $1.1 million ($0.02/basic share).

• 9M FFO was $215.5 million versus $215.6 million; adjusted FFO was $213.3 million versus $219.3 million.

Outlook and guidance

• FY2026 production guidance is 28,500–29,500 boe/d, with 71% oil and NGLs; capital expenditures are $300–325 million and decommissioning expenditures $7–11 million.

• At guidance midpoint, AFFO is $306 million ($4.59/basic share), FFO $305 million ($4.58/basic share), FCF negative $16 million and year-end net debt $400 million.

• December 2026 exit production guidance was reaffirmed at ~31,000 boe/d; 2027 average production growth is expected to be ~20% versus 2026, subject to constructive commodity prices.

• FY2026 guidance assumes WTI US$80/bbl, WCS differential US$16/bbl, MSW differential US$1/bbl, AECO $2.00/GJ and CAD/USD 1.39.

• 2026 plans include 70 operated wells (69.7 net), participation in 9 non-operated wells (4.0 net) and ~$10 million for H2 exploration; a third Peace River rig is scheduled to mobilize in early December.