Obsidian Energy Ltd · TSX:OBE
Obsidian Energy — Investor Presentation (July 2025)
38 slides from Obsidian Energy's investor presentation, July 2025
Slide 1: Obsidian Energy Ltd. Corporate Presentation
Obsidian Energy Ltd. Corporate Presentation July 2025 TSX:/NYSE American: OBE
Slide 2: Advisory
ADVISORY OVERVIEW 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, 2025. All dollar amounts contained in this presentation are expressed in millions of Canadian dollars unless otherwis
Slide 3: Corporate Overview
CORPORATE OVERVIEW OVERVIEW Focused asset base with experienced team delivering value People, assets, discipline and return-focused CORPORATE SUMMARY1 MARKET SUMMARY Production (Q1 2025 proforma) 27,088 boe/d Shares outstanding 67.7 million Q1 2025 (proforma) Production mix (Q1 2025 proforma) 70% oi
Slide 4: Obsidian Energy Strategy
OBSIDIAN ENERGY STRATEGY OVERVIEW We focus on superior execution to deliver results and create value for shareholders S T R AT E G Y T O D E L I V E R S U P E R I O R S H A R E H O L D E R R E T U R N S Drive per share growth Use FCF from Grow intrinsic value of business Maintain prudent via product
Slide 5: Our Strategic Advantages
OUR STRATEGIC ADVANTAGES OVERVIEW Differentiating Obsidian Energy from peers to realize enhanced shareholder returns Established light oil assets provide stable production, free cash flow and future growth potential, HIGH QUALITY ASSETS while our Peace River area offers substantial future production
Slide 6: 2025 Highlights
2025 HIGHLIGHTS STRATEGY Strategic focus across our asset base to unlock future potential, share buybacks and debt repayment H2 2025 capital expenditures balanced between Peace River and Willesden Green development OPERATIONS FINANCIAL ‣ H1 Highlights ‣ Completed Pembina Disposition ‣ Capital activi
Slide 7: H2 2025 Guidance
H2 2025 GUIDANCE STRATEGY Balanced capital allocation between Peace River and Willesden Green assets to set the stage for future growth when commodity prices improve H2 2025E HEAVY OIL LIGHT OIL Average production boe/d 27,100 – 28,300 Based on midpoint Capital expenditures $ millions 110 – 120 Aver
Slide 8: 2025 Capital Program
2025 CAPITAL PROGRAM CORPORAATE PERFORMANCE Peace River program to delineate asset for future production growth, Willesden Green focus on Cardium and Belly River formations 58 (56.4 NET) WELL OPERATED DRILLING PROGRAM ‣ Development focused H2 2025 capital program in Peace River and Willesden Green H
Slide 9: Peace River Asset
PEACE RIVER ASSET HEAVY OIL ASSETS (PEACE RIVER) Ownership in high-quality Bluesky and Clearwater heavy oil resource provides upside for future growth Highly economic plays with significant scale 99% ‣ Large, contiguous, long-term land base of working interest (operated) ~700 sections with Bluesky a
Slide 10: Peace River Transformation
PEACE RIVER TRANSFORMATION HEAVY OIL ASSETS (PEACE RIVER) Expanded holdings, increased production and established new Bluesky and Clearwater development fields D EC E M B E R 2 0 2 1 2025 (post 45% W.I. PROP acquisition) 2021 2025 (as at March 31) 4,891 Average production 11,609 (Dec./21)1 (boe/d) (
Slide 11: Peace River 2025 Capital Program
PEACE RIVER 2025 CAPITAL PROGRAM HEAVY OIL ASSETS (PEACE RIVER) Program consists of 46 (44.4 net) development and appraisal/delineation wells to be rig released NAMPA ~99% ownership in wells allows for ability to control pace ‣ Mapping indicates large development potential with stacked pay potential
Slide 12: Peace River H1 2025 Capital Program
PEACE RIVER H1 2025 CAPITAL PROGRAM HEAVY OIL ASSETS (PEACE RIVER) Exploration/appraisal and development program adding well inventory and production growth B LU E S K Y F O R M AT I O N C L E A RWAT E R F O R M AT I O N EXPLORATION/APPRAISAL EXPLORATION/APPRAISAL ‣ Well production improving and bei
Slide 13: Light Oil Assets
LIGHT OIL ASSETS LIGHT OIL ASSETS History of highly economic returns with years of low-risk inventory Q1 2025 WG production 11,393 boe/d Willesden Green (Cardium/Belly River/Mannville) ‣ A high-grade light oil field with proven Cardium and emerging Belly River potential ‣ Increased working interest
Slide 14: Willesden Green & PCU#11 – Consistent Robust Netbacks
WILLESDEN GREEN & PCU#11 – CONSISTENT ROBUST NETBACKS LIGHT OIL ASSETS History of highly economic returns with years of low-risk inventory and significant owned/operated infrastructure Efficient and highly economic development 74% ‣ Extensive acreage totaling 226 net sections prospective for Cardium
Slide 15: Strategic Pembina Asset Disposition
STRATEGIC PEMBINA ASSET DISPOSITION PEMBINA ASSET DISPOSITION Transformational divestiture focuses Company with Peace River becoming largest asset for future growth ‣ Sold our operated Pembina Assets for proceeds of: ‣ $211 million cash (after interim closing adjustments) ‣ 9.1 million in InPlay Oil
Slide 16: Strategic Benefits of the Pembina Disposition
STRATEGIC BENEFITS OF THE PEMBINA DISPOSITION PEMBINA ASSET DISPOSITION Enhanced liquidity with InPlay share position providing upside optionality PRO FORMA IMPACT (Q1 2025) 4% 1% 6% 1% REALIGNED ASSET BASE 6% Peace River 30% 8% ‣ Production mix weighted towards Peace River Bluesky and Clearwater Wi
Slide 17: Reserves Underpin Our Current and Future Value
RESERVES UNDERPIN OUR CURRENT AND FUTURE VALUE SUMMARY Trading at substantial discount on booked reserves basis; growing per share metrics to increase shareholder value PRO FORMA NET ASSET VALUE/SHARE YEAR-END 2024 AND PRO FORMA RESERVES SUMMARY (C$ per share) TOTAL US$60 WTI US$70 WTI US$80 WTI $30
Slide 18: Why Invest in Obsidian Energy
WHY INVEST IN OBSIDIAN ENERGY SUMMARY Peace River growth area combined with established light oil production offers upside potential for shareholders FOCUSED STRATEGY ‣ Strategy directed to unlocking the potential of our assets to drive future production and funds flow per share growth while continu
Slide 19: Appendix
Appendix TSX:/NYSE American: OBE
Slide 20: Delivering Results
APPENDIX DELIVERING RESULTS Strategy and execution create momentum for long-term value 2023 2024 Q1 2025 GROWTH IN PRODUCTION (boe/d; boe/d per share) Production 32,275 boe/d 37,474 boe/d 38,416 boe/d 40,000 200 Capital expenditures $292.5 million $343.1 million $128.4 million 37,474 38,416 180 160
Slide 21: Considerable Future Value from Tax Pools
CONSIDERABLE FUTURE VALUE FROM TAX POOLS APPENDIX $2.2 billion of tax pools in unrecognized value to be leveraged with future growth (Q2 2025E) 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 (Q2 2025E) $200 million $326 millio
Slide 22: Hedging Production to Preserve Cash Flow
HEDGING PRODUCTION TO PRESERVE CASH FLOW APPENDIX Disciplined approach to risk management to protect cash flows for capital investment, debt repayment and return of capital WTI OIL HEDGES AECO GAS HEDGES ($, WTI/bbl) ($, mcf/d) 14,000 Oil Swaps - 35,000 Gas Collars 12,000 (at $2.11-$2.64) 30,000 Gas
Slide 23: 2024 Reserves Highlights
2024 RESERVES HIGHLIGHTS APPENDIX Growth in reserves volumes and values reflect high level of development and success of our capital programs YEAR-END 2024 RESERVES SUMMARY Proved developed Total proved Total proved producing (PDP) (1P) plus probable (2P) 8th Consecutive Year of >100% reserve 2024 P
Slide 24: 2024 Reserves Locations
2024 RESERVES LOCATIONS APPENDIX Replacing production by >146% and increasing booked locations with significant future inventory potential BOOKED RESERVE LOCATIONS (number, 2P, net) OBE LAND (net sections prospective for formation) 450 458 400 Pembina Disposition net booked locations: 129 135 Willes
Slide 25: Clearwater Production Growth
APPENDIX CLEARWATER PRODUCTION GROWTH Exploration/appraisal, development and acquisition success C L E A R WAT E R P R O D U C T I O N Nampa & Gift Lake (average boe/d by month) Appraisal Dawson Development IMPROVEMENTS IN PEACE RIVER DUE TO: 4,500 ‣ Increased internal resource allocation with expan
Slide 26: Peace River Multi-Zone Opportunities
PEACE RIVER MULTI-ZONE OPPORTUNITIES APPENDIX Creating value applying multi-zone development across our Peace River asset ‣ Bluesky: ‣ Multi-stacked drilling ‣ 4 – 8 wells per section, Apply learnings from FORMATION depending on zone thickness Bluesky and Clearwater COLORADO SHALE ‣ exploration/appr
Slide 27: Viking – Stable Returns with Development Upside
VIKING – STABLE RETURNS WITH DEVELOPMENT UPSIDE APPENDIX Revitalized light oil asset that provides high IP rates, highly economic return and quick payouts 100% working interest History of unlocking reserves and production value ‣ Sweet, light oil development play with associated natural gas 1,520 bo
Slide 28: Well Economics
WELL ECONOMICS APPENDIX 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 2.0 mile 1.6 mile 1.8 mile DCET Capex $3.3 million $2.3 million $4.5 million $5.5 million $2.1 milli
Slide 29: Experienced Team with Strong Technical Skills
EXPERIENCED TEAM WITH STRONG TECHNICAL SKILLS APPENDIX Working together to build a top tier developer that provides solid returns to stakeholders EMPLOYEES FINANCIAL AND COMMERCIAL MANAGEMENT TEAM Staff & contractors with deep experience Strong financial, commercial and capital Stephen E. Loukas Pre
Slide 30: Endnotes
Endnotes TSX:/NYSE American: OBE
Slide 31: Endnotes
ENDNOTES ENDNOTES Slide 3: Corporate Overview Slide 9: Peace River Asset Market capitalization determined with share price on the close of business on July 9, 2025, on the TSX ($8.22 per Booked reserve locations reflects locations as defined by our Independent, Qualified Reserves Evaluator in their
Slide 32: Endnotes, Cont.
ENDNOTES, CONT. ENDNOTES Slide 17: Reserves Underpin our Current and Future Value Slide 23: 2024 Reserve Highlights Reserves evaluation excludes inactive ARO. Our YE2024 reserves evaluation conforms to the requirements of National Reserves evaluation excludes inactive ARO. Our YE2024 reserves evalua
Slide 33: Definitions and Industry Terms
DEFINITIONS AND INDUSTRY TERMS ENDNOTES H1 2025E means the expected 2025 results for the first half of the year, Decommissioning means decommissioning expenditures NYSE American means the New York Stock Exchange, American based on internal assumptions and estimates EOR stands for enhanced oi recover
Slide 34: Non-GAAP Measures Advisory
NON-GAAP MEASURES ADVISORY ENDNOTES 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
Slide 35: Oil and Gas Information Advisory
OIL AND GAS INFORMATION ADVISORY ENDNOTES 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 co
Slide 36: 2024 Reserves Disclosure and Definitions
2024 RESERVES DISCLOSURE AND DEFINITIONS ENDNOTES Unless otherwise noted, any reference to 2024 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 categories: Report”) prepared by GL
Slide 37: Forward-Looking Information Advisory
FORWARD-LOOKING INFORMATION ADVISORY ENDNOTES Certain statements contained in this document constitute forward-looking statements or information (collectively With respect to forward-looking statements and FOFI contained in this document, the Company has made "forward-looking statements") within the
Slide 38: Forward-Looking Information Advisory (Cont.)
FORWARD-LOOKING INFORMATION ADVISORY (CONT.) ENDNOTES The future acquisition by the Company of the Company's common shares pursuant to its share buyback program related events, the worldwide transition towards less reliance on fossil fuels and/or other factors; the risk that the (including through a