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Canada's Obsidian Energy Q3 funds flow rises on higher oil prices

By Reuters News


Overview

  • Canada oil and gas producer's Q3 funds flow from operations and AFFO rose yr/yr on higher oil prices

  • Net income for Q3 increased slightly from a year earlier

  • Company repurchased and cancelled 0.9 mln shares for C$13 mln in Q3


Outlook

  • Obsidian Energy reaffirms its December 2026 exit production rate of about 31,000 boe/d

  • Company expects average production growth of about 20% in 2027 versus 2026, assuming constructive commodity prices

  • A third drilling rig will be added in Peace River in December to accelerate winter drilling program


Result Drivers

  • HIGHER OIL PRICES - Co said increased realized oil prices were the main driver of higher funds flow from operations and net income in Q3

  • BELLY RIVER ACQUISITION - Recently acquired Belly River assets outperformed expectations, contributing to production growth

  • LIGHT OIL PRODUCTION - Strong early results from new Belly River wells and optimization efforts supported higher production rates


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Net Income

C$18 mln

Q3 Capex

C$75.60 mln

Q3 Cash flow from Operating Activities

C$87 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 Obsidian Energy Ltd is C$19.00, about 47.1% above its November 4 closing price of C$12.92


Reuters Recommended Reads

  • Nov 3 - Ovintiv Q3 profit rises on higher energy prices, lower costs

  • Nov 4 - Canada's Tourmaline Oil Q3 earnings jump

  • Nov 4 - Canada's Saturn Oil & Gas posts jump in Q3 petroleum and natural gas sales


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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