Canada's Obsidian Energy Q2 profit rises on higher oil prices

Obsidian Energy

30/07/2026 12:21

Overview
Canada oil and gas producer's Q2 net income rose yr/yr, driven by higher oil prices
Q2 adjusted funds flow from operations increased, supported by higher realized oil prices
Company completed Belly River light oil asset acquisition and expanded credit facility

Outlook
Obsidian Energy is executing an expanded C$100 mln development program in H2 2026
Company expects a second light oil drilling rig to start in Willesden Green in Q3 2026
Obsidian Energy plans a six-well development program on acquired Belly River lands in early 2027

Result Drivers
HIGHER OIL PRICES - Co said increased realized oil prices were the main driver of higher adjusted funds flow from operations and net income
BELLY RIVER ACQUISITION - Co closed acquisition of Belly River light oil assets, adding about 2,500 boe/d of production
HIGHER OPERATING COSTS - Net operating costs rose due to higher trucking costs from expanded Peace River production base

Company press release: ID:nNFCbYW1Mj

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Income
 
C$42 mln
 
Q2 Capex
 
C$39.10 mln
 
Q2 Cash flow from Operating Activities
 
C$38.20 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"
The average consensus recommendation for the oil & gas exploration and production peer group is "buy"
Wall Street's median 12-month price target for Penn West Petroleum Ltd (Alberta) is C$17.00, about 22.7% above its July 29 closing price of C$13.85
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 27 three months ago

Reuters Recommended Reads
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July 29 - Canada's Saturn Oil & Gas Q2 revenue rises on higher output, prices
July 29 - Canada's Cenovus Energy Q2 revenue, profit rise on higher oil prices

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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.)