Obsidian Energy (OBE) Q1 2025 earnings summary

Executive summary

• Closed $320 million Pembina asset sale in April 2025, using proceeds to reduce debt.

• First quarter 2025 production averaged 38,416 boe/d, up 12% year-over-year.

• Funds flow from operations (FFO) rose 19% to $100.1 million, with net income at $15.4 million.

• Capital program focused on Peace River exploration/appraisal and development, with 26 operated wells rig released.

• Responded to market volatility by reducing first half 2025 capital program to $165–$170 million.

Financial highlights

• FFO: $100.1 million ($1.36/share basic), up from $84.4 million ($1.09/share) year-over-year.

• Net income: $15.4 million ($0.21/share basic), up from $11.9 million ($0.15/share) year-over-year.

• Capital expenditures: $128.4 million, up from $114.3 million year-over-year.

• Net debt at March 31, 2025: $459.9 million, reduced to ~$250 million post-Pembina sale.

• Realized hedging gain of $2.7 million in Q1 2025.

Outlook and guidance

• H1 2025 capital program reduced to $165–$170 million due to commodity price volatility.

• Q2 2025 production guidance: 28,800–29,600 boe/d; H1 2025: 33,600–34,000 boe/d.

• Net debt expected at $255 million by June 30, 2025, or $195 million including InPlay shares.

• FFO for H1 2025 revised to $160 million ($2.23/share); FCF to $16 million ($0.23/share).

• Second half 2025 guidance to be provided in late June.