Obsidian Energy (OBE) Q4 2025 earnings summary

Executive summary

• Achieved average Q4 2025 production of 27,971 boe/d and generated $56.6 million in funds flow from operations.

• Completed a successful capital program with waterflood initiatives, resulting in reserve replacement ratios over 100%.

• Disposed of Pembina assets for ~$325 million, reducing decommissioning liability by over 50% and net debt to $268.2 million.

• Repurchased 7.6 million shares under NCIB and continued prepaid equity forward program, purchasing 4.3 million shares in Q4 2025 and into 2026.

Financial highlights

• Full-year 2025 funds flow from operations (FFO) was $272.1 million ($3.92/share basic), down from $432 million ($5.69/share basic) in 2024, mainly due to lower oil prices and production post-Pembina disposition.

• Net income for 2025 was $35.2 million ($0.51/share basic), compared to a net loss of $202.6 million in 2024.

• Capital expenditures totaled $298.9 million in 2025, with decommissioning expenditures of $28.8 million.

• Netback for 2025 was $28.13/boe, down from $35.45/boe in 2024.

Outlook and guidance

• 2026 operating costs per boe expected to decrease as new water disposal capabilities reduce trucking expenses in Peace River.

• NCIB renewal expected in March 2026, with potential for further share repurchases.

• Guidance for H2 2025: actual production of 27,644 boe/d, capital expenditures of $130.3 million, and FFO of $106.3 million, below midpoint due to lower production and higher costs.