Canada's Obsidian Energy Q1 funds flow drops after asset sale

Obsidian Energy

07/05/2026 12:20

Overview

Canada oil and gas producer's Q1 funds flow from operations fell sharply yr/yr after asset sale

Company reported a Q1 net loss, mainly due to hedging losses from rising oil prices

Obsidian Energy repurchased and cancelled about 1.5 mln shares under renewed buyback program

Outlook

Obsidian Energy plans a material increase to its 2026 capital budget in the second half

Company expects to release revised capital guidance during the week of May 25

Obsidian Energy says higher oil prices and tighter light oil differentials influencing outlook

Result Drivers

LOWER PRODUCTION - Co said decrease in funds flow from operations was mainly due to lower production after the Pembina asset sale

HIGHER OIL PRICES - Funds flow from operations was supported by stronger oil prices in March, mainly due to the conflict in the Middle East

STRONG WELL RESULTS - Development drilling in Peace River delivered strong initial production rates and high oil quality

Company press release: ID:nNFC8tRPfB

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Income
-C$18.70 mln
Q1 Capex
C$79.70 mln
Q1 Cash flow from Operating Activities
C$40 mln


Analyst Coverage

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

Wall Street's median 12-month price target for Obsidian Energy Ltd is C$14.50, about 17.6% below its May 6 closing price of C$17.60

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 52 three months ago

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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.)