Obsidian Energy Ltd · TSX:OBE
Obsidian Energy — Q1 2025 Earnings Presentation
39 slides from Obsidian Energy's earnings presentation, May 7, 2025
Slide 1: Obsidian Energy Ltd. Corporate Presentation
Obsidian Energy Ltd. Corporate Presentation May 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 Obsidian Energy refocused through $320 million Disposition of operated Pembina assets People, assets, discipline, return-focused, and execution strength CORPORATE SUMMARY1 MARKET SUMMARY Production (Q2 2025E) ~29,200 boe/d Shares outstanding 71 million Q2 2025E ~29,200 bo
Slide 4: Obsidian Energy Strategy
OBSIDIAN ENERGY STRATEGY OVERVIEW We focus on superior execution to deliver results and create value for shareholders STRATEGY TO DELIVER SUPERIOR SHAREHOLDER RETURNS Drive per share growth Use FCF from Grow intrinsic value of business Maintain prudent via production growth, light oil assets to inve
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: 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 7: 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% Willesden Green ‣ Production mix weighted towards Peace River Bluesky a
Slide 8: H1 2025 Strategy and Highlights
H1 2025 STRATEGY AND HIGHLIGHTS STRATEGY Strategic focus on Peace River to unlock future potential, share buybacks and debt repayment H1 2025 capital program centers on Peace River development and delineation activities and continued share repurchase program as Pembina Disposition strengthens balanc
Slide 9: Delivering Results
DELIVERING RESULTS STRATEGY 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 10: 2025 H1 and Q2 Guidance
2025 H1 AND Q2 GUIDANCE STRATEGY Focus on developing and appraising our Peace River asset to set the stage for future growth when commodity prices improve H1 2025E (REVISED) Q2 2025E HEAVY OIL LIGHT OIL Average production 33,600 – 34,000 boe/d 28,800 – 29,600 boe/d Based on midpoint of Q2 2025E Capi
Slide 11: H1 2025 Capital Program
H1 2025 CAPITAL PROGRAM CORPORAATE PERFORMANCE Peace River development and exploration/appraisal program to delineate asset for future production growth 30 (28.4 NET) WELL OPERATED DRILLING PROGRAM ‣ Altered program in response to changing market and lower commodity prices H1 2025E (REVISED) Q1 2025
Slide 12: 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 13: Peace River Transformation
PEACE RIVER TRANSFORMATION HEAVY OIL ASSETS (PEACE RIVER) Expanded holdings, increased production and established new Bluesky and Clearwater development fields D E C E M B ER 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 14: Peace River H1 2025 Capital Program
PEACE RIVER H1 2025 CAPITAL PROGRAM HEAVY OIL ASSETS (PEACE RIVER) Program consists of 19 (17.4 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 potent
Slide 15: 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 BLUESKY FORMATION C L E A R W A T ER F O R M A T I O N EXPLORATION/APPRAISAL EXPLORATION/APPRAISAL ‣ Well production improving and being optimi
Slide 16: 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 17: 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 18: 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 TOTAL PROVED US$60 WTI US$70 WTI
Slide 19: 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 heavy and light oil assets to drive future production and funds flow per share
Slide 20: Appendix
Appendix TSX:/NYSE American: OBE
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 TAX POOL COMPOSITION Utilized by Year1 @ 8% Discount Rate2 (Q2 2025E) $200 million $326 million $4.27/share
Slide 22: Hedging Production to Preserve Cash Flow
HEDGING PRODUCTION TO PRESERVE CASH FLOW APPENDIX Continuing to build on our hedge position at constructive levels Disciplined approach to WTI OIL HEDGES AECO GAS HEDGES ($, mcf/d) risk management to ($, WTI/bbl) Collars Collars Swaps protect cash flows for 12,000 30,000 Swaps 50% capital investment
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 Substantial inventory for future growth OBE LAND BOOKED RESERVE LOCATIONS (net sections prospective for formation) (number, 2P, net) Pembina Disposition Willesde
Slide 25: Clearwater Production Growth
APPENDIX CLEARWATER PRODUCTION GROWTH Exploration/appraisal, development and acquisition success CLEARWATER PRODUCTION Nampa & Gift Lake (average boe/d by month) Appraisal Dawson Development IMPROVEMENTS IN PEACE RIVER DUE TO: 4,500 ‣ Increased internal resource allocation with expanded technical te
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 Bluesky and Clearwater FORMATION depending on zone thickness COLORADO SHALE exploration/apprai
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 PEACE RIVER WILLESDEN GREEN VIKING Formation Bluesky2 Clearwater Cardium3 Belly River W. Viking (Esther)4 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 million
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 Full-time staff & contractors with deep Strong financial, commercial and capital Stephen E. Loukas Pres
Slide 30: Endnotes
Endnotes TSX:/NYSE American: OBE
Slide 31: Endnotes
ENDNOTES ENDNOTES Slide 3: Corporate Overview Slide 10: 2025 H1 and Q2 Guidance Market capitalization determined with share price on the close of business on May 5, 2025, on the Mid-point of revised H1 2025E guidance range: 9,730 bbl/d light oil, 11,600 bbl/d heavy oil, 2,590 bbl/d TSX ($5.44 per sh
Slide 32: Endnotes, Cont.
ENDNOTES, CONT. ENDNOTES Slide 12: Peace River Asset Slide 17: Willesden Green & PCU#11 – Consistent Robust Netbacks, cont. Booked reserve locations reflects locations as defined by our Independent, Qualified Reserves Evaluator in Obsidian Energy’s working interest is based on the Company’s booked l
Slide 33: Endnotes, Cont.
ENDNOTES, CONT. ENDNOTES Slide 19: Why Invest in Obsidian Energy Slide 23: 2024 Reserve Highlights, cont. Percentage of shares purchased and cancelled through the share buyback program calculated based on F&D and FD&A costs are non-GAAP measures. See ‘Non-GAAP Measures Advisory’ and ‘2024 Reserves s
Slide 34: 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 Mmcf and mmcf/d means million cubic feet and million cubic feet per day, based on internal assumptions and estimates respectively Dispos
Slide 35: 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 36: 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 Test Results and Initial Production Rates ratio of six thousand cubic feet of natural gas to one barrel of crude oil is based on an energy Readers are ca
Slide 37: 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 38: 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 39: 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