Obsidian Energy Ltd · TSX:OBE
Obsidian Energy — Q2 2025 Earnings Presentation
38 slides from Obsidian Energy's earnings 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 and six months ended June 30, 2025. All dollar amounts contained in this presentation are expressed in millions of Canadian dollars unless o
Slide 3: Corporate Overview
CORPORATE OVERVIEW OVERVIEW Focused asset base with experienced team delivering value People, assets, discipline and return-focused CORPORATE SUMMARY MARKET SUMMARY Production (Q2 2025) 28,943 boe/d Shares outstanding 67.1 million Q2 2025 28,943 boe/d Production mix (Q2 2025) 71% oil and liquids Mar
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: Delivering Results
RESULTS DELIVERING RESULTS Strategy and execution create momentum for long-term value PRODUCTION 2024 Q1 2025 Q2 2025 (boe/d; boe/d per thousand shares) Production boe/d 37,474 38,416 28,943 40,000 200 180 Capital expenditures $ millions $343.1 $128.4 $40.2 38,416 160 30,000 37,474 140 Decommissioni
Slide 7: 2025 Highlights
2025 HIGHLIGHTS 2025 HIGHLIGHTS Strategic focus across our asset base to unlock future potential, buyback shares, and repay debt H2 2025 capital expenditures balanced between Peace River and Willesden Green development OPERATIONS FINANCIAL ‣ H1 Highlights ‣ Completed Pembina Disposition ‣ Capital ac
Slide 8: H2 2025 Guidance
H2 2025 GUIDANCE 2025 HIGHLIGHTS 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 Averag
Slide 9: 2025 Capital Program
2025 CAPITAL PROGRAM 2025 HIGHLIGHTS 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 H1 2025E
Slide 10: 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 11: 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 June 30) 4,891 Average production 12,827 (Dec./21)1 (boe/d) (Q
Slide 12: 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 13: 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 14: Light Oil Assets
LIGHT OIL ASSETS LIGHT OIL ASSETS History of highly economic returns with years of low-risk inventory Q2 2025 WG production 11,181 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 15: 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 16: 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: ‣ $211 million cash (after interim closing adjustments) ‣ 9.1 million in InPlay Oil
Slide 17: Strategic Benefits of the Pembina Disposition
STRATEGIC BENEFITS OF THE PEMBINA DISPOSITION PEMBINA ASSET DISPOSITION Enhanced liquidity with InPlay share position providing upside optionality PRO FORMA IMPACT (Q1 2025) 4% 1% 6% 1% REALIGNED ASSET BASE 6% Peace River 30% 8% ‣ Production mix weighted towards Peace River Bluesky and Clearwater Wi
Slide 18: Hedging Production to Preserve Cash Flow
HEDGING PRODUCTION TO PRESERVE CASH FLOW HEDGING SUMMARY Disciplined approach to risk management to protect cash flows for capital investment, debt repayment and return of capital WTI OIL HEDGES AECO GAS HEDGES ($, bbl/d) ($, mcf/d) 14,000 Oil Swaps 35,000 Gas Collars 12,000 (at $2.11-$2.64) 30,000
Slide 19: Reserves Underpin Our Current and Future Value
RESERVES UNDERPIN OUR CURRENT AND FUTURE VALUE SUMMARY Trading at substantial discount on booked reserves basis; growing per share metrics to increase shareholder value PRO FORMA NET ASSET VALUE/SHARE YEAR-END 2024 AND PRO FORMA RESERVES SUMMARY (C$ per share) TOTAL US$60 WTI US$70 WTI US$80 WTI $30
Slide 20: 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 21: Appendix
Appendix TSX:/NYSE American: OBE
Slide 22: 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 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 2025) $200 million $327 million $4.39/shar
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 (average boe/d by month) Dawson Development IMPROVEMENTS IN PEACE RIVER DUE TO: 6,000 ‣ Increased internal resource allocation with expanded technical team Nampa & G
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 1,338 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 10: Peace River Asset Market capitalization determined with share price on the close of business on July 29, 2025, on the TSX ($8.57 Booked reserve locations reflects locations as defined by our Independent, Qualified Reserves Evaluator in their pe
Slide 32: Endnotes, Cont.
ENDNOTES, CONT. ENDNOTES Slide 18: Hedging Production to Preserve Cash Flow Slide 23: 2024 Reserve Highlights In accordance with policies approved by our Board of Directors, the Company may, from time to time, manage Reserves evaluation excludes inactive ARO. Our YE2024 reserves evaluation conforms
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 i