TSE:OBE

Obsidian Energy (OBE.TO)

14.11
+0.85 (6.41%)
as of Jul 21, 2026, 8:00:00 pm Market Open.
124 watching
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Investor Insights
star iconJul 21, 2026, 12:00 am

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

Obsidian Energy (OBE-T) has been described as having a somewhat contentious CEO, which may raise concerns among potential investors regarding leadership and decision-making. Despite these issues, the company has reported fairly good well results, indicating some level of operational efficiency and potential for growth. However, the overall market cap of Obsidian Energy is considered too small to attract significant attention from institutional investors, making it less relevant in their portfolios. Many experts suggest that there are better investment opportunities available, which may pose a challenge for the company in gaining traction in a competitive market. Overall, while there are some positive facets to the company's operations, the leadership and market positioning raise questions about its attractiveness as an investment option.

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Consensus
Negative
valuation icon
Valuation
Overvalued
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CPO,CPG
COMMENT
Has a great land spread but management has never shown it is able to take advantage of it. He is holding this basically for yield. All the oil/gas income trusts will run up if the price of oil runs up.
DON'T BUY
Have continued to show disappointing operational performance. Overvalued.
DON'T BUY
In the past 5 years they have been a very active acquirer. His concern is their fairly high debt level. Depleting reserves by about 40,000 barrels per day and to replace will be expensive.
DON'T BUY
One of the larger producers with an equal weighting in gas and oil. It requires a lot of Cap X to keep its production flat. Not a sustaining producer. Have good sheltering ability when the tax horizon meets them in 2011. There are others he prefers.
DON'T BUY
(Market Call Minute.) Coming out of a trust structure is facing a lot of headwinds. Doesn't like this one.
SELL
(Market Call Minute.) It has never hit its production numbers. Very complicated asset base. There are simpler alternatives in energy.
DON'T BUY
(Market Call Minute) Hold or you are better off buying some one like a Crescent Point.
SELL
Could be more oil weighted. Caller is talking about selling this and buying NAL Oil & Gas (NAE.UN-T). A reasonable call but he would prefer buying Baytex (BTE.UN-T).
BUY
(Market Call Minute.) Likes it. They've done the distribution cut. Pays while you wait.
HOLD
(Market Call Minute.) One of the larger trusts at 160,000 BOEs per day. Think they will have problems going forward but will probably make some very astute acquisitions.
WEAK BUY
Just cut distributions and the price got hit. Has had some operating issues and he would prefer other names.
COMMENT
Trust space is in a funk. You have to know which ones are going to survive to the conversion date of 2011 and also, which ones are going to cut and how many times. Expect more distribution cuts in the energy space. This one has a 28.8% yield.
DON'T BUY
One of the bigger energy trusts. Biggest issue they had was not getting good enough returns on capital they were spending. Better names such as Crescent Point (CPG.UN-T), Vermilion (VET.UN-T), Arc (AET.UN-T) and Enerplus (ERF.UN-T).
COMMENT
Current CapX and current distribution is up about 150%. Companies can't operate paying out more than they take in. With estimated oil prices for this year and next, there is no way current distributions can be maintained. Look for a 50% decline on distributions but that will still give you a double-digit yield. (Prefers Crescent Point (CPG.UN-T).
COMMENT
Have about $5 or $6 billion in tax credits and hold about 5 million acres of land. Cut distributions just like everybody else. If oil goes up, you will likely see an increase in the payouts.
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