Obsidian Energy (OBE) investor relations material

Financial and operational performance

• Q4 2025 production averaged 27,971 boe/d, with annualized funds flow from operations of $226 million and a net debt to FFO ratio of 1.2x.

• Market capitalization reached $716 million, with enterprise value at $984 million and net debt at $268 million at year-end 2025.

• Completed the Pembina asset sale for $325 million, reducing asset retirement obligations and further strengthening the balance sheet.

• Fully utilized the NCIB share buyback program, repurchasing over 20% of shares since 2023, and initiated a prepaid equity forward program.

• Refinanced senior notes at a lower interest rate and extended the credit facility to 2027, with minimal drawdown at year-end 2025.

Asset base and development strategy

• Core assets in Peace River (heavy oil) and Willesden Green (light oil) with significant reserves and multi-year drilling inventory.

• 2025 capital program focused on Peace River, including waterflood pilots and exploration, and Willesden Green, with new Cardium and Belly River wells.

• 2026 capital program targets 38 operated wells, balancing development and appraisal, with a focus on expanding waterflood initiatives.

• Pembina Cardium Unit #11 and Viking assets provide additional low-risk, high-return drilling opportunities.

Reserves and value creation

• Year-end 2025 2P reserves totaled 158 MMboe, with a 2P NPV10% of $2,088 million at US$70/bbl WTI.

• Achieved reserve replacement ratios of 118% to 235% for 2025, marking the fifth consecutive year above 100%.

• Reserve life index ranges from 6.0 to 13.3 years, underpinned by a large inventory of booked and unrisked locations.

• Net asset value per share (2P) estimated at $26.69, with current share price trading at a significant discount to reserve value.