Obsidian Energy (OBE) Q4 2025 earnings summary

Executive summary

• Achieved average Q4 2025 production of 27,971 boe/d and generated $56.6 million in funds flow from operations, with full-year FFO at $272.1 million, down from $432 million year-over-year due to lower oil prices and the Pembina asset sale.

• Completed the $325 million sale of Pembina assets in April 2025, reducing net debt to $268.2 million from $411.7 million at year-end 2024 and decommissioning liability by over 50%.

• Executed a robust capital program focused on Peace River and Willesden Green, advancing waterflood initiatives and drilling in the Belly River formation, resulting in reserve replacement ratios over 100%.

• Repurchased 7.6 million shares under the NCIB for $54.9 million and continued an active prepaid equity forward program, purchasing 4.3 million shares in Q4 2025 and into 2026.

Financial highlights

• Q4 2025 FFO was $56.6 million ($0.84/share basic), down from $107.7 million ($1.45/share) in Q4 2024.

• Full-year 2025 FFO was $272.1 million ($3.92/share basic), down from $432 million ($5.69/share basic) in 2024.

• Full-year net income was $35.2 million ($0.51/share basic), reversing a net loss of $202.6 million in 2024.

• Capital expenditures totaled $298.9 million for 2025, with decommissioning spend at $28.8 million.

• Netback for 2025 was $28.13/boe, down from $35.45/boe in 2024.

Outlook and guidance

• 2026 operating costs per boe are expected to decrease as new water disposal capabilities reduce trucking expenses in Peace River.

• NCIB renewal is expected in March 2026, with potential for further share repurchases.

• Guidance for H2 2025 was missed on FFO and production due to weather-related disruptions and higher costs, but operations normalized by mid-January 2026.