Opinions Jeff Young
Obsidian EnergyOBE.TODON'T BUYNov 29, 2012
Stock 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.
Has been a bit of turmoil in the company and stock price has come down significantly. Had some management changes. People think they are going to have to cut their dividend but management says they are not going to have to. Part of the strategy for not doing that is selling off asset packages. It really depends on hedging and how they can hedge their costs out. In this environment, you need to stick with the higher quality producers.