Obsidian Energy Ltd · TSX:OBE
Obsidian Energy — FY2025 Earnings Presentation
33 slides from Obsidian Energy's earnings presentation, February 2026
Slide 1: Obsidian Energy Ltd. Corporate Presentation
Obsidian Energy Ltd. Corporate Presentation February 2026
Slide 2: Overview
OVERVIEW Focused asset base with experienced team delivering value Q4 2025 Production 27,971 boe/d Q4 2025 Annualized Funds Flow from Operations (FFO) $226 million Q4 2025 27,971 boe/d Q4 2025 Annualized Net Debt to FFO 1.2x PEACE RIVER 13,741 boe/d Shares Outstanding 67.3 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 • Over 20% of shares repurchased/cancelled (~17.2 million shares) since the implementation of our NCIB program in February 2023 • Fully utilized current NCIB in August 2025, we are in the process
Slide 5: 2025 Operational Highlights
2025 OPERATIONAL HIGHLIGHTS Unlock future asset potential H1 Highlights H2 Highlights • Peace River focused $169 million capital program, including • Rig-released 19 (19.0 net) Clearwater development wells and ~$27 million for exploration/appraisal and waterflood projects two (2.0 net) Clearwater in
Slide 6: 2025 Financial Highlights
2025 FINANCIAL HIGHLIGHTS Buyback shares and maintain low leverage ratios Completed Pembina Disposition Renewed Credit Facility • Sold operated Pembina assets in April 2025 for proceeds of • Extended $235 million credit facility into 2027, only $9 million drawn ~$325 million at December 31, 2025 • I
Slide 7: Delivering Results
DELIVERING RESULTS Strategy and execution create momentum for long-term value creation CORPORATE PRODUCTION 2024 2025* 40 200 WTI US$/bbl $75.72 $64.81 Ann. Production (boe) per share (000s) 37 38 AECO $/GJ $1.36 $1.59 Production (Mboe/d) 30 150 29 27 28 20 100 Production boe/d 37,474 30,624 10 50 C
Slide 8: 2025 Reserves Highlights
2025 RESERVES HIGHLIGHTS Reserves replacement ratios reflect development program success Y E A R - E N D 2 0 2 5 R E S E R V E S S U M M A RY 5th Consecutive Year Total of >100% reserve Proved Developed Proved Total Proved replacement (PDP,1P & 2P) Producing (PDP) (1P) Plus Probable (2P) Light and m
Slide 9: Reserves Underpin Our Current and Future Value
RESERVES UNDERPIN OUR CURRENT AND FUTURE VALUE Trading at substantial discount on booked reserves basis BOOKED RESERVE LOCATIONS PRO FORMA NET ASSET VALUE/SHARE (number, 2P, net) (C$ per share) 2023 2024 2025 US$60 WTI US$70 WTI US$80 WTI 450 $35 400 $33.68 $30 350 357 $25 $26.69 300 318 $22.59 250
Slide 10: 2026 Guidance
2026 GUIDANCE Advance delineation and development in both our heavy and light oil areas 2026E Heavy Oil Light Oil Average production boe/d 27,900 – 29,900 Based on midpoint Capital expenditures $ millions 190 – 230 Average production boe/d 12,700 16,200 Decommissioning expenditures $ millions 7 – 11
Slide 11: 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 12: Peace River Asset
PEACE RIVER ASSET Highly economic plays with significant scale 99% WI 13,741 boe/d 25% decline rate • Large, contiguous, long-term land base of (operated) (Q4 2025 production) (PDP, 3-year average) >700 sections with Bluesky and Clearwater heavy oil rights • New development fields at Dawson (Clearwa
Slide 13: 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 14: Willesden Green Asset
WILLESDEN GREEN ASSET Drilling underexploited Cardium at Open Creek and Belly River across the region Cardium 85% WI 10,689 boe/d 15% decline rate (operated) (Q4 2025 production) (PDP, 3-year average) • Open Creek field has limited horizontal Cardium development to date T45 • Capital efficiency incr
Slide 15: Hedging Program
HEDGING PROGRAM Risk management program to preserve cash flow WTI OIL HEDGES AECO GAS HEDGES (US$/bbl, bbl/d) ($/mcf, mcf/d) 16,000 Oil Swaps 40,000 Gas Swaps 14,000 35,000 12,000 30,000 50% 10,000 25,000 8,000 50% 20,000 hedge hedge level 35,377 level 13,298 12,800 6,000 15,000 $2.68 U$62.47 U$64.1
Slide 16: Why Invest in Obsidian Energy
WHY INVEST IN OBSIDIAN ENERGY Peace River growth combined with established light oil assets offers shareholder upside FOCUSED STRATEGY • Strategy directed to unlocking asset potential to drive future production and funds flow per share growth while continuing to return capital to shareholders SUBSTA
Slide 17: Appendix
OBSIDIANY ENERGY,
Slide 18: Strategic Pembina Disposition
STRATEGIC PEMBINA DISPOSITION Rationalizes portfolio at a value accretive to our shareholders • Sold operated Pembina assets in April 2025 for proceeds of $326 million including the monetization of the InPlay share position in August 2025 T52 R4 W5 Sales Metrics Pembina • ~10,300 boe/d production (2
Slide 19: Pembina Cardium Unit #11 Asset
PEMBINA CARDIUM UNIT #11 ASSET Non-Operated unit with years of low-risk inventory 45% WI 2,279 boe/d 21% decline rate • Large non-operated unit with 45% working interest, 35 gross (non-operated) (Q4 2025 production (PDP, 3-year average) sections • Historically underdeveloped area in the heart of the
Slide 20: Viking Asset
VIKING ASSET Stable returns with development upside History of unlocking reserves and production value 86% WI 1,025 boe/d 16% decline rate (operated) (Q4 2025 production (PDP, 3-year average) • Sweet, light oil development play with associated natural gas • Significant drilling inventory, including
Slide 21: 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 (Q4 2025) $200 million $330 million $4.59/share $300 mi
Slide 22: 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 23: 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 24: Advisory
ADVISORY This presentation should be read in conjunction with the Company’s audited consolidated financial statements and MD&A as at and for the year ended December 31, 2025. All dollar amounts contained in this presentation are expressed in millions of Canadian dollars unless otherwise indicated. C
Slide 25: Endnotes
Endnotes
Slide 26: Endnotes
ENDNOTES Slide 2: Overview Market capitalization determined with share price on the close of business on February 18, 2026, on the TSX ($10.64 per Slide 9: Reserves Underpin our Current and Future Value share) and common shares outstanding at December 31, 2025. Enterprise value calculated by adding
Slide 27: Endnotes, Cont.
ENDNOTES, CONT. Slide 13: Light Oil Assets Booked locations reflects locations as defined by our Independent, Qualified Reserves Evaluator in their Reserves Report. Slide 19: Pembina Cardium Unit #11 Asset Obsidian Energy’s working interest is based on the Company’s PDP reserves. Booked reserve loca
Slide 28: 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 29: 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 30: 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 31: 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 32: 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 33: 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 expenses; fluctuations in interest rates, including the effects of interest rates on our borrowing costs and on economic document, and the as