Canada's Obsidian Energy Q4 FFO drops due to lower production

Obsidian Energy

19/02/2026 12:17

Overview

Canada oil and gas produce Q4 net loss shrinks; Funds Flow from Operations drop to C$272.1 mln from C$432 mln

Company generated C$56.6 mln funds flow from operations in Q4

Company repurchased 4.3 mln shares in Q4 under prepaid equity forward program

Outlook

Obsidian Energy plans to renew NCIB in March 2026

Company expects operating costs to decrease in 2026

Obsidian Energy aims to reduce oil inventory levels in coming months

Result Drivers

PRODUCTION DECLINE - Q4 production impacted by Pembina asset sale and extreme weather in Peace River, reducing output by 500 boe/d

CAPITAL PROGRAM - Successful capital program in 2025 focused on waterflood initiatives and drilling in Peace River and Willesden Green

SHARE REPURCHASE - Continued prepaid equity forward program, purchasing 4.3 mln shares in Q4 to mitigate share-based compensation

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Net Income
-C$12.30 mln
Q4 Capex
C$65 mln
Q4 Cash flow from Operating Activities
C$42.60 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the oil & gas exploration and production peer group is "buy."

Wall Street's median 12-month price target for Obsidian Energy Ltd is C$10.00, about 6% below its February 18 closing price of C$10.64

The stock recently traded at 56 times the next 12-month earnings vs. a P/E of 50 three months ago

Press Release: ID:nNFC30SJv

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)