TSE:OBE

Obsidian Energy (OBE.TO)

15.01
-1.12 (6.94%)
as of Jun 9, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJun 9, 2026, 12:00 am

This summary was created by AI, based on 1 opinions in the last 12 months.

Obsidian Energy, represented by the ticker symbol OBE-T, is a company facing mixed reviews from analysts. The CEO has been described as somewhat contentious, which raises concerns about leadership stability. Despite this, the company has demonstrated fairly good well results, indicating that operational performance may be on a positive trajectory. However, the market capitalization of Obsidian Energy is characterized as small, rendering it irrelevant to most institutional investors who prefer larger, more stable options. Consequently, experts suggest that there are better alternatives to consider in the market, which raises questions about the attractiveness of investing in Obsidian Energy at this time.

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Consensus
Negative
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Valuation
Overvalued
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DON'T BUY
Cut distribution by about 40%. Have always had problems with their capital efficiencies compared to their peers. Started farming out some of their massive land holdings, which helps, but until he can this demonstrated he wn’t own.
BUY
Fantastic lands and management that is a little cautious. The more they can farm out properties and get them developed quicker would be good for them.
HOLD
It’s a great strategy that they have with China and Mitsubishi. In both cases the partner is picking up more than half the cost. This name he rates a hold because it is quite large (5’th). Everything is looking good but they have not given any clarity as to what will happen post-conversion.
BUY
Latest quarter was in line with expectations. It is one of the larger of the energy producer trusts. Thinks it will do quite well. Post change, distribution will be between $1.20 to $1.40.
BUY
$1.8 billion investment by the China Investment Corp. Deal is structured to develop the oil sands play, Seal and they pay almost all the costs up front and Penn West gets 55% of the cash flow and/or oil from future development.
HOLD
Have huge land holdings. Will either sell some off or get taken out. May not be able to maintain payout when they go corporate.
WAIT
Has had a chequered past in terms of being able to deliver on expectations. Would rather wait until he sees signs of a turnaround. Chinese have invested but he thinks this is more of a passive investment.
DON'T BUY
Traditionally had problems with capital efficiencies, replacing barrels they lost through natural decline. Made an interesting deal with a Chinese company to exploit some of their land that they couldn't handle. Expecting a cut in distributions when they convert. Would like to see them improve profitability and capital efficiencies.
BUY
(Market Call Minute.) One of the more dominant trusts in its field. Well priced and the yield is reasonable.
BUY
(Market Call Minute.) Has a tremendous menu of drilling targets.
SELL
China Investment Corp. made an investment, spending over $300 million in Peace River Arch area to bring it into production for 45% of production. (Penn West gets 55% at no cost.) Also, CIC has bought a 5% interest in Penn West. Thinks this will be a long-term trend. Putting disparate pieces together in their more conventional assets has been a challenge. Just announced a cut in distributions. If you own for income, there are better opportunities.
WEAK BUY
Non-core holding. Great assets and reasonable yield but development of assets is slow. Thinks they should bring in partners.
SELL
Have been pounding the table on their drilling in the Cardium. They are very big so have to find a lot more oil/gas to keep the production needle moving higher. Prefers Suncor (SU-T). If you own, he would be tempted to Sell this and buy Suncor. (See Top Picks.)
BUY
Has entered into a strategic agreement with the Chinese company. This was a vote of confidence. With the cash infusion, they get a strong financial partner and allows them to pay some of their debt off. Have a lot of great assets. Very diverse. 9% yield.
DON'T BUY
Wrestled with sizable decline rates with higher than average debt levels. Did a pretty decent job of asset sales recently so have a little bit more flexibility. Production dropped from about 200,000 BOE's to 165,000. Have some excellent assets. Questions how the transition from a growth oriented E&P company going to take place when they convert to a corporation.
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