Opinions Dennis da Silva
Obsidian EnergyOBE.TOSELLNov 08, 2012
Dennis da SilvaStock price when the opinion was issued
As of Jun 09, 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.
It is clear it is a major underperformer. Recent cleanup of senior managers leaves it with a very capable CEO. He is left to see who he will bring in. It is a case of getting the right efficiencies out of the asset base, which is good. Payout ratio is about 150%, not sustainable. Good thing is that they have been able to do some asset sales, which clean up the balance sheet. Sell until the transition period is over. It is dead money. It could take a year.