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TSE:OBE

Obsidian Energy (OBE.TO)

15.85
-0.51 (3.12%)
as of Aug 28, 2026, 8:00:00 pm Market Open.
127 watching
0
Investor Insights
star iconAug 30, 2026, 12:00 am

This summary was created by AI, based on 2 opinions in the last 12 months.

Obsidian Energy (OBE-T) is currently a focus for several analysts, primarily due to its substantial exposure to oil and gas, with a favorable mix of approximately 70% oil and 30% gas. The market has shown enthusiasm this summer regarding its Clearwater exposure, suggesting potential for growth. Furthermore, the company possesses significant tax pools, implying that it may avoid tax payments for a decade, adding to its investment appeal. However, some experts highlight that the company's CEO is somewhat contentious, and despite reasonable well results, its small market cap renders it less relevant for institutional investors. This creates a conflicting perspective on whether it's a worthwhile investment, with some suggesting cautious holding for existing investors.

consensus icon
Consensus
Hold
valuation icon
Valuation
Undervalued
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HOLD
One of the best energy trusts. They are the biggest owner in the biggest conventional oilfield in Canada, Pembina Cardium.
COMMENT
Natural gas prices are very weak. Oil prices are not as strong as people think. Production will be a little bit weak due to severe weather in Alberta. Has one of the most diverse asset bases.
BUY
Natural gas. They are so good at what they do that there is a likelihood of blowing your brains out operating the company. Can't see it as a takeover target.
DON'T BUY
His model price is $44.52, a 24% positive differential, which will disappear in 2 years so are trading at what their future earnings are. (See “Today’s Commentary”.)
DON'T BUY
The price reflects the perception of the market in regards to their properties and payouts. He doesn't see any immediate problems, but if there is a hit in commodity prices that may affect things. A number of others, that have better properties or better balance sheets and are selling at a more reasonable valuation level.
BUY
A higher quality trust. One of the larger trusts.
BUY
Before it was converted into a trust was one of the premier oil and gas companies in the west. Still thinks it is, within the trust structure. It may not stay in a trust structure as taxation rules are pending. It's in a perfect space to buy other mid-sized oil and gas trusts and producers. He likes it long term, but doesn't own it, waiting to find out what the rules are.
TOP PICK
A defensive recommendation, might give you 11% and some capital gain.
PAST TOP PICK
(A Top Pick June 22/06. Down 9%.) Great company. Has broken through the 100,000 barrels a day wall. Great assets. Still a Buy.
HOLD
One of the larger royalty trusts. Spend a large amount of money in order to keep production up. Made some nice acquisitions. Likes it, but not one of his favourites. Better value elsewhere. Fully valued.
WEAK BUY
This is a name that has one of the better stories in the income trusts. Has a lot of potential upside from CO2 flooding. A hold, or even had modestly to.
HOLD
This is one of the quality oil companies in the country. He has decided not to buy oil/gas trusts until the rules on taxation are clearer.
BUY
Own a number of good properties that will be desirable by others down the road. Distribution is reasonably secure.
HOLD
Given the uncertainty on the legislation governing trusts he'd be inclined to Hold. One of the great oil/gas companies in Canada.
COMMENT
Best land position of any of the trusts. Good track record. Downside in trusts is that they are paying out cash flow instead of using it for drilling. To grow production quickly, they have to drill and possibly make acquisitions putting them on a treadmill. If you want yield and not growth, it's fine.
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