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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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DON'T BUY
The stock is in a bit of a difficult phase right now. Better value elsewhere at this time.
PAST TOP PICK
(A Top Pick Mar 1/06. Down 17.5%.) Have a massive land base and some oil sands play. Gas weighted. Perfect model to convert back to a corporation in 4 years.
HOLD
Doesn't feel they will cut the distribution. There should be a rally in this area over the next little while. Has been deeply oversold. Strong company.
BUY
Of the oil/gas trusts, Penn West (PWT.UN-T) and Vermilion (VET.UN-T) are his 2 favourites at this point. Looking for them to be much stronger in the 2nd half of the year.
DON'T BUY
He is not encouraging people to go into energy trusts at this time. If you are interested in them, this one has a nice broad asset base with some strong undeveloped land potential. Converting back to a corporation would be relatively easy for them. Very high payout ratio.
BUY
Income trusts hit a snag that he is not sure how to evaluate. Technically, this one has broken down and is developing resistance. With current weakness in energy prices, we are coming close to the low end of where the new range of energy might be. The support from November to the present is very important. Don't let it make a lower low than November’s. Think about it as a trading range over the next 6 months.
BUY
One of the larger energy trusts. Getting near their 52-week low. Very good management and land holdings. Have a fairly good production growth profile. Yield is about 12%.
BUY
Has been weak lately, but has lots of potential with CO2 oil sands projects.
DON'T BUY
One of his favourite E&P trusts. One of the best oil/gas producers out there. The largest landholder in the Pembina area. Sold his holdings at $38, but would be interested if it got down to the low $30’s.
COMMENT
Largest conventional oil/gas trust. Have some interesting projects. Doing some CO2 projects and they need to get the CO2 to the fields very economically. Would prefer to buy 10% lower.
BUY
Can easily convert back to the corporate model if needed. Dramatically improved efficiencies by farming out lower return properties. Significant land base.
HOLD
Has recovered fairly well since the trust market hit. Expect its payout is pretty secure.
PAST TOP PICK
(A Top Pick Dec 30/05. Down 3.1%.) Hit by the ruling on income trusts. Still likes it. Low payout. Could convert back to an oil/gas company. Good management.
TOP PICK
Ignoring that it is a trust, the Price/Book Value would be one the cheapest of the oil stocks. Pays a nice dividend and will for some time to come. Likes energy.
BUY
Good management. Excellent reserve life. Should survive the changeover in 2011.
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