AcquisitionsJun 3, 2026, 10:51 AM
Obsidian Energy Acquires Belly River Assets for $105 Million
AI Summary
Obsidian Energy Ltd. announced the acquisition of high-return Belly River light oil assets in the Wilson Creek area for $105 million. This acquisition adds approximately 2,500 boe/d of production and 35 net sections of land, solidifying Obsidian's position as the largest Belly River producer. The transaction is expected to be immediately accretive to funds flow and strengthen the company's development program, with a projected net debt to FFO of 1.1x by year-end 2026.
Key Highlights
- Obsidian Energy acquires ~2,500 boe/d of Belly River light oil production and 35 net sections of land in Wilson Creek.
- Unadjusted purchase price of $105 million ($96 million net of adjustments), funded by existing cash and credit facilities.
- Transaction implies ~3.2x 2026 NOI and ~2.1x 2027 NOI at specified WTI prices.
- Acquired assets hold 2P reserves of 13.6 MMboe and PDP reserves of 3.4 MMboe.
- 2027 development program targets ~3,000 boe/d production from acquired assets, generating ~$45 million NOI.
- Pro forma net debt to FFO projected at ~1.1x by year-end 2026.
- Contingent value payment of up to $7 million may be payable based on WTI price thresholds.
Price Impact
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