Obsidian Energy (OBE) Q4 2024 earnings summary

Executive summary

• Funds flow from operations rose 14% year-over-year to $432.0 million, with per share growth of 22%.

• Average 2024 production increased 16% to 37,474 boe/d, surpassing guidance.

• Repurchased and cancelled 6% of shares outstanding for $41.7 million in 2024.

• Net loss of $202.6 million due to a non-cash impairment from classifying Pembina assets as held for sale; excluding this, net income would have been $101.9 million.

Financial highlights

• Cash flow from operating activities was $361.9 million, up from $352.7 million in 2023.

• Funds flow from operations reached $432.0 million, up from $377.6 million year-over-year.

• Capital expenditures totaled $343.1 million, up from $292.5 million in 2023.

• Net debt increased to $411.7 million from $330.2 million, mainly due to the Peace River Clearwater Acquisition.

• Free cash flow was $65.0 million, compared to $58.5 million in 2023.

Outlook and guidance

• All operational metrics met or exceeded 2024 guidance, including production, net operating costs, and G&A.

• 2024 production, FFO, and FCF were above guidance, while net debt and leverage ratios were higher due to acquisition funding.

• Pembina asset sale announced in February 2025, expected to generate $320 million in value, with proceeds to pay down debt and improve liquidity.