Opinions Ryan Bushell
Obsidian EnergyOBE.TOBUYJun 03, 2013
Ryan BushellStock 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.
Resource potential of this company is immense. Has one of the deepest inventories of any company in Western Canada on the light oil side. As a dividend investor, you need a long-term sustainable business and this company has that long-term inventory of oil and gas that can support cash flow generation going forward. They erred when they tried to grow too aggressively to please some shorter-term investors that wanted to see more production growth to pop the share price. Dividend at this level is not sustainable given their capital expenditure profile. However, they are reducing capital expenditures in order to level this out a bit.