Obsidian Energy Ltd · TSX:OBE
Obsidian Energy — Investor Presentation (January 2024)
23 slides from Obsidian Energy's investor presentation, Jan 25, 2024
Slide 1: Obsidian Energy Ltd. 2024 Guidance Presentation
Obsidian Energy Ltd. 2024 Guidance Presentation January 25, 2024 TSX:/NYSE American: OBE
Slide 2: Advisory
ADVISORY OVERVIEW This presentation should be read in conjunction with the Company’s unaudited consolidated interim financial statements and Management’s Discussion and Analysis (“MD&A”) for the three and nine months ended September 30, 2023, and audited consolidated annual financial statements and
Slide 3: Corporate Overview
CORPORATE OVERVIEW OVERVIEW World class assets and experienced team delivering value People, assets, discipline, return-focus and execution strength CORPORATE SUMMARY MARKET SUMMARY Q3 2023 Production 2024E 36,000 boe/d Shares outstanding 77.6 million 32,937 boe/d YoY production growth* 12% Market c
Slide 4: Focus During 2024 - Highlights
FOCUS DURING 2024 - HIGHLIGHTS 2024 STRATEGY Strategy to unlock shareholder value through focus on growth, accessing Peace River potential and returns 2024 plans expected to deliver 12% production growth, solid FCF, stable debt levels, and return of capital to shareholders to maximize value OPERATIO
Slide 5: 2024E Guidance
2024E GUIDANCE 2024 STRATEGY Value-added growth through the development of new and existing fields while further appraising our Peace River asset 2024E Average production 35,250 – 36,750 boe/d HEAVY OIL LIGHT OIL Capital expenditures $345 – $355 million Based on midpoint of above guidance Decommissi
Slide 6: 2024 Capital Program
2024 CAPITAL PROGRAM 2024 STRATEGY Expanded development and exploration/appraisal program to add production and delineate assets 78 (77.3 NET) WELL OPERATED DRILLING PROGRAM ‣ Expected average production of ~36,000 boe/d, a 12% annualized production growth from 2023 ‣ Ability to alter program quickl
Slide 7: Peace River Growth Asset
PEACE RIVER GROWTH ASSET HEAVY OIL ASSETS (PEACE RIVER) Ownership in high-quality heavy oil resource with Bluesky and Clearwater upside Q3 2023 Peace River production 6,810 boe/d ‣ Cold-flow heavy oil resource developed with multi-leg horizontal wells ‣ Large, contiguous, long-term land base of ~525
Slide 8: Peace River 2024 H1 Program
PEACE RIVER 2024 H1 PROGRAM HEAVY OIL ASSETS (PEACE RIVER) Strong technical work provides foundation for substantial future development opportunities and growth 2024 H1 program (wells rig released) ‣ Development: 11 (11.0 net) WALRUS ‣ Exploration/appraisal : 2 (2.0 net) ‣ New development field ‣ OS
Slide 9: Light Oil Assets
LIGHT OIL ASSETS LIGHT OIL ASSETS History of highly economic returns with years of low-risk inventory Q3 2023 Cardium production 23,403 boe/d PEMBINA Cardium (Willesden Green/Pembina) ‣ One of North America’s most significant light oil fields with the dominant land position among peers ‣ Significant
Slide 10: Willesden Green/Pembina 2024 H1 Program
WILLESDEN GREEN/PEMBINA 2024 H1 PROGRAM LIGHT OIL ASSETS Economic returns with years of low-risk inventory providing strong returns and quick payouts 2024 H1 program (wells rig released) PEMBINA ‣ 12 (11.4 net) wells ‣ Low decline, pressure-maintained development PEMBINA ‣ Existing wells and infrast
Slide 11: 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 ORGANIC GROWTH STRATEGY ‣ Strategy focused on growing Peace River production and per share metrics with expectation to continue to return capital to s
Slide 12: Appendix
Appendix TSX:/NYSE American: OBE
Slide 13: Hedging Production to Preserve Cash Flow
HEDGING PRODUCTION TO PRESERVE CASH FLOW APPENDIX Continuing to build on our hedge position at constructive levels OIL HEDGES ‣ WCS differentials: AECO GAS HEDGES ($, mcf/d) ‣ April to June 2024: 750 bbl/d @ $18.80/bbl (US$14.10/bbl) 50,000 $2.52 $2.52 AECO GAS COLLARS 40,000 $3.35 43,365 43,365 50%
Slide 14: Considerable Future Value from Tax Pools
CONSIDERABLE FUTURE VALUE FROM TAX POOLS APPENDIX $2.4 billion of tax pools in unrecognized value to be leveraged in our three-year growth plan Our significant tax pool position is estimated to save TAX POOL COMPOSITION ~$35 million in 2024 (September 30, 2023) $0.3 billion Amount of Pools Illustrat
Slide 15: 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 ‣ ~270 employees EMPLOYEES FINANCIAL AND COMMERCIAL ‣ Management team: Deep experience in professions, Strong financial, commercial and capital representi
Slide 16: Endnotes
Endnotes TSX:/NYSE American: OBE
Slide 17: Endnotes
ENDNOTES ENDNOTES Slide 3: Corporate Overview Slide 5: 2024 Guidance, cont. Market capitalization and enterprise value was determined with share price on the close of business Pricing assumptions outlined are forecasted for the full year of 2024 and include risk management on January 22, 2024. Commo
Slide 18: Definitions and Industry Terms
DEFINITIONS AND INDUSTRY TERMS ENDNOTES 2023E means the expected 2023 results, based on internal DCET stands for Drilling, Case, Equip and Tie-in capital, and MWh/d means megawatt hour per day assumptions and estimates represents all necessary capital to drill and produce a well into the existing fi
Slide 19: 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 20: 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 thousand cubic feet of natural gas to one barrel of crude oil is based on an energy equivalency conversion method primarily applicable at th
Slide 21: 2022 Reserves Disclosure and Definitions
2022 RESERVES DISCLOSURE AND DEFINITIONS ENDNOTES Unless otherwise noted, any reference to 2022 reserves in this presentation are based on the report (the “2022 Each of the reserves categories (proved and probable) may be divided into developed and undeveloped categories: Reserves Report”) prepared
Slide 22: 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 23: Forward-Looking Information Advisory (Cont.)
FORWARD-LOOKING INFORMATION ADVISORY (CONT.) ENDNOTES Although the Company believes that the expectations reflected in the forward-looking statements and FOFI and senior unsecured notes; the possibility that we breach one or more of the financial covenants pursuant to our contained in this document,
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