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Obsidian Energy (OBE) investor relations material

Obsidian Energy Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary30 Oct, 2025

Executive summary

  • Achieved average production of 27,316 boe/d in Q3 2025, with funds flow from operations (FFO) of $49.7 million ($0.74/share basic), impacted by a $5.5 million mark-to-market charge on share-based compensation.

  • Increased H2 2025 production guidance to 27,800–28,300 boe/d due to strong development results, especially in Peace River and the first Belly River well in Crimson.

  • Disposed of InPlay Oil Corp. shares for $91.4 million, reducing net debt to $219.3 million at quarter-end.

  • Initiated a pre-paid equity forward program to hedge share-based incentive plan exposure.

Financial highlights

  • Q3 2025 FFO was $49.7 million, down from $124.7 million in Q3 2024, due to lower production after the Pembina asset sale, plant turnaround, lower oil prices, and share-based compensation charges.

  • Net income for Q3 2025 was $16.8 million ($0.25/share basic), down from $33.2 million ($0.44/share) in Q3 2024.

  • Capital expenditures were $65.3 million in Q3 2025, with decommissioning expenditures of $7.9 million.

  • Free cash flow for Q3 2025 was negative at $(23.5) million, compared to $32.9 million in Q3 2024.

  • Netback per boe was $24.90 in Q3 2025, down from $36.23 in Q3 2024.

Outlook and guidance

  • H2 2025 production guidance raised to 27,800–28,300 boe/d, with expectations to reach the upper end.

  • H2 2025 capital expenditure guidance increased to $120–$125 million, reflecting accelerated projects and additional injector wells.

  • H2 2025 operating cost guidance increased to $14.35–$14.60/boe due to higher trucking and processing fees, with expectations for lower costs ahead.

  • H2 2025 FFO expected at ~$114 million, with net debt to annualized FFO ratio of ~1.0x.

  • Approximately two-thirds of Q4 2025 WTI exposure hedged at ~C$90/bbl.

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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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