Obsidian Energy (OBE) Corporate presentation summary

Financial and operational performance

• Q4 2025 production averaged 27,971 boe/d, with annualized funds flow from operations (FFO) of $226 million and a net debt to FFO ratio of 1.2x.

• Market capitalization reached $837 million, with enterprise value at $1,105 million and net debt at $268 million.

• 2025 saw the sale of Pembina assets for ~$320 million, reducing net debt and asset retirement obligations significantly.

• 2024 production was 37,474 boe/d, with $432 million FFO and $65 million free cash flow (FCF).

• 2025 reserves replacement exceeded 100% for the fifth consecutive year, with a 2P reserve life index of 13.3 years.

Strategic focus and capital allocation

• Strategy centers on operational excellence, maximizing asset value, and disciplined capital allocation.

• 2026 capital program targets 27,900–29,900 boe/d production, with $190–230 million in capital expenditures.

• Balanced investment between heavy oil (Peace River) and light oil (Willesden Green), with 38 operated wells planned for 2026.

• Shareholder returns prioritized through share buybacks, with ~23% of shares repurchased since 2023.

• Significant tax pools ($2.2 billion) expected to shield cash taxes for about 10 years at US$70/bbl WTI.

Asset base and operational highlights

• Peace River produced 13,741 boe/d in Q4 2025, with a 25% decline rate and >700 sections of heavy oil rights.

• Willesden Green produced 10,689 boe/d, focusing on Cardium and Belly River formations with strong recent well results.

• Viking asset produced 1,025 boe/d, offering low-risk, high-return light oil development.

• Q1 2026 saw 11 wells rig-released in Peace River and 5 in Willesden Green, with waterflood pilots advancing.

• Pembina Cardium Unit #11 (non-operated) contributed 2,279 boe/d, with a 21% decline rate and 24 net 2P locations.