Obsidian Energy Ltd · TSX:OBE
Obsidian Energy — Q1 2026 Earnings Presentation
31 slides from Obsidian Energy's earnings presentation, May 2026
Slide 1: Obsidian Energy Ltd. Corporate Presentation
Obsidian Energy Ltd. Corporate Presentation May 2026
Slide 2: Overview
OVERVIEW Focused asset base with experienced team delivering value Q1 2026 Production 28,733 boe/d Q1 2026 Annualized Funds Flow from Operations (FFO) $244 million Q1 2026 28,733 boe/d Q1 2026 Annualized Net Debt to FFO 1.1x PEACE RIVER 13,270 boe/d Shares Outstanding 66.8 million Cold flow heavy oi
Slide 3: Obsidian Energy Strategy
OBSIDIAN ENERGY STRATEGY Focus on superior execution to deliver results and create value for shareholders High Quality Assets Extensive land base with multiple productive horizons in both our core regions of Peace River and Willesden Green Strong EOR potential to reduce sustaining capital and realiz
Slide 4: Returning Capital to Shareholders
RETURNING CAPITAL TO SHAREHOLDERS Opportunistic share buyback program under NCIB enhances growth profile • Renewed our NCIB in March 2026, repurchased and cancelled ~1.6 million shares since then NCIB REPURCHASES CORPORATE PRODUCTION (Excluding fields included in Pembina Disposition) 8 100% Utilized
Slide 5: Delivering Results
DELIVERING RESULTS Strategy and execution create momentum for long-term value creation CORPORATE PRODUCTION Q2 2025 Q3 2025 Q4 2025 Q1 2026 40 200 WTI US$/bbl $63.74 $64.93 $59.14 $71.93 Ann. Production (boe) per share (000s) 38 AECO $/mcf $1.69 $0.60 $2.23 $2.01 Production (Mboe/d) 30 150 29 27 28
Slide 6: 2026 Guidance
2026 GUIDANCE Advance delineation and development in both our heavy and light oil areas 2026E 2026E Sensitivity Average production boe/d 27,900 – 29,900 US$70 WTI US$80 WTI Pricing assumptions Capital expenditures $ millions 190 – 230 Guidance Case Case $ millions 7 – 11 WTI US$/bbl 60.00 70.00 80.0
Slide 7: 2026 Capital Program
2026 CAPITAL PROGRAM Balanced capital program while furthering our waterflood initiatives in Peace River 2026E Development Appraisal Injector Gross (Net) Wells DEVELOPMENT WELLS Heavy Oil Assets H1 Peace River (Bluesky) 1 (1.0) 1 (1.0) - 2 (2.0) H1 Peace River (Clearwater)1 8 (8.0) - 7 (7.0) 15 (15.
Slide 8: Hedging Program
HEDGING PROGRAM Risk management program to preserve cash flow WTI OIL HEDGES AECO GAS HEDGES WTI Swaps WTI Collars AECO Swaps % Hedged % Hedged Volumes Avg. Price Term (net) Volumes Avg. Price Volumes Floor Ceiling Term (net) (mcf/d) (per mcf) May 2026 77% 13,100 US$67.45 - - - Summer 2026 (May – Oc
Slide 9: Q1 2026 Operational Highlights
Q1 2026 OPERATIONAL HIGHLIGHTS Unlocking asset potential, advancing waterflood initiatives Peace River Willesden Green • Rig-released 11 (11.0 net) wells in the area during Q1 2026, • Rig-released 5 (5.0 net) wells in the Open Creek area of Willesden including 5 (5.0 net) Clearwater wells, 4 (4.0 ne
Slide 10: Peace River Asset
PEACE RIVER ASSET Highly economic plays with significant scale 99% WI 13,270 boe/d 25% decline rate • Large, contiguous, long-term land base of (operated) (Q1 2026 production) (PDP, 3-year average) >700 sections with Bluesky and Clearwater heavy oil rights • New development fields at Dawson (Clearwa
Slide 11: Light Oil Assets
LIGHT OIL ASSETS Delivering highly economic returns with years of low-risk inventory Willesden Green (Cardium/Belly River/Mannville) • A high-grade light oil field with proven Cardium and emerging PCU#11 T49 R4 Belly River success W5 • Significant reserve-based inventory of compelling drilling LIGHT
Slide 12: Willesden Green Asset
WILLESDEN GREEN ASSET Drilling underexploited Cardium at Open Creek and proving up Belly River across the region 85% WI 11,917 boe/d 15% decline rate Cardium (operated) (Q1 2026 production) (PDP, 3-year average) • Open Creek field has limited horizontal Cardium development to date T45 R5 • Capital e
Slide 13: 2025 Reserves Highlights
2025 RESERVES HIGHLIGHTS Reserves replacement ratios reflect development program success Y E A R - E N D 2 0 2 5 R E S E R V E S S U M M A RY 5th Consecutive Year Total of >100% reserve Proved Developed Proved Total Proved replacement (PDP,1P & 2P) Producing (PDP) (1P) Plus Probable (2P) Light and m
Slide 14: Reserves Underpin Our Current and Future Value
RESERVES UNDERPIN OUR CURRENT AND FUTURE VALUE Trading at substantial discount on booked reserves basis BOOKED RESERVE LOCATIONS NET ASSET VALUE/SHARE (number, 2P, net) (C$ per share) 2023 2024 2025 US$65 WTI US$75 WTI US$85 WTI 450 $40 400 $35 $36.40 350 357 $30 300 $29.64 318 $25 250 $24.27 $20 $2
Slide 15: Why Invest in Obsidian Energy
WHY INVEST IN OBSIDIAN ENERGY Peace River growth combined with established light oil assets offers shareholder upside • Strategy directed to unlocking asset potential to drive future production and funds flow FOCUSED STRATEGY per share growth while continuing to return capital to shareholders • Low
Slide 16: Appendix
OBSIDIANY ENERGY,
Slide 17: Pembina Cardium Unit #11 Asset
PEMBINA CARDIUM UNIT #11 ASSET Non-Operated unit with years of low-risk inventory 45% WI 2,346 boe/d 21% decline rate • Large non-operated unit with 45% working interest, 35 gross (non-operated) (Q1 2026 production (PDP, 3-year average) sections • Historically underdeveloped area in the heart of the
Slide 18: Viking Asset
VIKING ASSET Stable returns with development upside History of unlocking reserves and production value 86% WI 920 boe/d 16% decline rate (operated) (Q1 2026 production (PDP, 3-year average) • Sweet, light oil development play with associated natural gas • Significant drilling inventory, including bo
Slide 19: Considerable Future Value from Tax Pools
CONSIDERABLE FUTURE VALUE FROM TAX POOLS $2.2 billion of tax pools in unrecognized value to be leveraged with future growth Amount of Pools Illustrative Value of Tax Pools TA X P O O L C O M P O S I T I O N Utilized by Year1 @ 8% Discount Rate2 (Q1 2026) $200 million $333 million $4.95/share $300 mi
Slide 20: Well Economics
WELL ECONOMICS HALF CYCLE RESERVE TYPE CURVE ECONOMICS1,2 PEACE RIVER WILLESDEN GREEN VIKING Formation Bluesky3 Clearwater Cardium4 Belly River W. Viking (Esther)5 Well Length 10 legs 8 legs 1.8 mile 2.1 mile 1.8 mile DCET Capex $3.0 million $2.3 million $4.7 million $4.6 million $2.1 million EUR 25
Slide 21: Experienced Team with Strong Technical Skills
EXPERIENCED TEAM WITH STRONG TECHNICAL SKILLS Working together as a top tier developer that provides solid returns to stakeholders MANAGEMENT TEAM EMPLOYEES FINANCIAL AND COMMERCIAL Stephen E. Loukas President and Chief Staff & contractors with deep experience Strong financial, commercial and capita
Slide 22: Advisory
ADVISORY This presentation should be read in conjunction with the Company’s unaudited interim consolidated financial statements and MD&A for the three months ended March 31, 2026. All dollar amounts contained in this presentation are expressed in millions of Canadian dollars unless otherwise indicat
Slide 23: Endnotes
Endnotes
Slide 24: Endnotes
ENDNOTES Slide 2: Overview Slide 8: Hedging Program Market capitalization determined with share price on the close of business on May 6, 2026, on the TSX ($17.60 per In accordance with policies approved by our Board of Directors, the Company may, from time to time, manage commodity share) and common
Slide 25: Endnotes, Cont.
ENDNOTES, CONT. Slide 13: 2025 Reserve Highlights Slide 17: Pembina Cardium Unit #11 Asset Reserves evaluation excludes inactive ARO. Our YE2025 reserves evaluation conforms to the requirements of National Obsidian Energy’s working interest is based on the Company’s PDP reserves. Booked reserve loca
Slide 26: Definitions and Industry Terms
DEFINITIONS AND INDUSTRY TERMS 2026E means the guidance for 2026 for the full year, based on internal EOR stands for enhanced oi recovery NPV or NPV Btax 10% means net present value, before tax discounted at assumptions and estimates 10% EUR means expected ultimate recovery, which is the total econo
Slide 27: Non-GAAP Measures Advisory
NON-GAAP MEASURES ADVISORY Throughout this presentation and in other materials disclosed by the Company, we employ certain measures to analyze financial performance, financial position and cash flow. These non-GAAP and other financial measures do not have any standardized meaning prescribed by IFRS
Slide 28: Oil and Gas Information Advisory
OIL AND GAS INFORMATION ADVISORY Barrels of oil equivalent (“boe”) may be misleading, particularly if used in isolation. A boe conversion ratio of six Test Results and Initial Production Rates thousand cubic feet of natural gas to one barrel of crude oil is based on an energy equivalency conversion
Slide 29: 2025 Reserves Disclosure and Definitions
2025 RESERVES DISCLOSURE AND DEFINITIONS Unless otherwise noted, any reference to 2025 reserves in this presentation are based on the report (the “Reserves Each of the reserves categories (proved and probable) may be divided into developed and undeveloped Report”) prepared by GLJ Ltd. dated January
Slide 30: Forward-Looking Information Advisory
FORWARD-LOOKING INFORMATION ADVISORY Certain statements contained in this document constitute forward-looking statements or information (collectively With respect to forward-looking statements contained in this document, the Company has made assumptions “forward-looking statements”) within the meani
Slide 31: Forward-Looking Information Advisory (Cont.)
FORWARD-LOOKING INFORMATION ADVISORY (CONT.) Although the Company believes that the expectations reflected in the forward-looking statements contained in this liquids and natural gas, price differentials for oil and natural gas produced in Canada as compared to other markets, document, and the assum