Obsidian Energy (OBE) investor relations material

Executive summary

• Q1 2026 production averaged 28,733 boe/d, driven by operational excellence in Peace River and Willesden Green, with progress on heavy oil waterflood initiatives.

• Annualized funds flow from operations (FFO) reached $244 million, with Q1 FFO at $61.0 million, ahead of budget due to stronger oil prices in March.

• Strategic initiatives included continued share buybacks, asset optimization, and advancing waterflood projects to enhance recovery and long-term value.

Financial highlights

• Q1 2026 net debt stood at $280 million, with enterprise value at $1,455 million and market capitalization at $1,175 million.

• Q1 2026 FFO was $61.0 million ($0.91/share), while free cash flow (FCF) was negative at $(20.4) million, reflecting higher capital expenditures.

• Net operating costs for Q1 2026 were $14.60/boe, and netback was $26.76/boe.

• Net loss of $18.7 million in Q1 2026, mainly due to realized and unrealized risk management losses from hedging.

• Capital expenditures totaled $79.7 million, down from $128.4 million year-over-year.

Outlook and guidance

• 2026 average production guidance is 27,900–29,900 boe/d, with capital expenditures of $190–230 million and decommissioning expenditures of $7–11 million.

• FFO for 2026 is projected between $225–331 million, with FCF ranging from $7–113 million depending on commodity prices.

• Net debt is expected to decrease to $195–272 million by year-end 2026, with net debt to FFO improving to as low as 0.6x in higher price scenarios.

• Planning a material increase to the 2026 capital budget in the second half, focusing on high-netback oil-weighted volumes and expanded waterflood initiatives.

• Revised capital guidance expected to be released during the week of May 25th.