TSE:OBE

Obsidian Energy (OBE.TO)

15.52
+0.51 (3.40%)
as of Jun 10, 2026, 3:18:49 pm Market Open.
124 watching
0
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
valuation icon
Valuation
Overvalued
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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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