Opinions Mason Granger
Obsidian EnergyOBE.TODON'T BUYSep 18, 2012
Stock price when the opinion was issued
As of Jul 21, 2026. Market Open.
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Josef Schachter
Benj Gallander
They had over $3 Billion in debt but it is down to $408 Million due to them selling off a lot of assets. They had to hedge to survive and they all come off in the new year. The company loses money quarter after quarter, but that could change. There is huge insider buying. A major property of theirs came in on time and under budget.
Benj GallanderIt could be sold before the end of the year. Results today were not very good. They are looking to sell some of their properties. They have these hedges in place at $50 and the oil price is much higher now. They still have a fair amount of debt. He is happy to hold it. We will see more pieces coming off. It is still high risk due to the debt. This one might get taken over so he holds it.
A big lumbering company that struggles to replace production every year. However, some of the things they are doing in terms of enhanced oil recovery are going to benefit them down the road but at the same time he thinks the company is struggling with a debt level that is higher than he likes, at about 3.5X cash flow. Also, believes they have an internal mandate to sell assets to the tune of $1.5 billion, which he thinks has a lot to do with fixing up the balance sheet.