Business UpdateJun 1, 2026, 05:05 PM
Obsidian Energy Boosts 2026 Capital Program to $325M, Targets 15% Production Growth
AI Summary
Obsidian Energy is increasing its 2026 capital program by approximately $100 million to $300-$325 million, aiming for around 15% production growth in 2027. The company also reported a 40% increase in forecasted 2026 Funds Flow from Operations (FFO) to $317 million ($4.74/share) and an improved net debt to FFO ratio of approximately 0.9x. The increased investment is primarily directed towards accelerating light oil development in Willesden Green and expanding waterflood programs in Peace River. Additionally, Obsidian Energy has acquired over 150 sections of land in the Peace River Oil Sands fairway.
Key Highlights
- Obsidian Energy increases 2026 capital program by ~$100 million to $300-$325 million.
- Targeting ~15% production growth in 2027, with ~65% of incremental investment in Belly River and Cardium development.
- Forecast 2026 Funds Flow from Operations (FFO) increases 40% to $317 million ($4.74/share).
- Net debt to FFO improves to ~0.9x, assuming US$80/bbl WTI in H2 2026.
- Acquired over 150 sections of land, primarily in the Peace River Oil Sands fairway.
- 2026 average production guidance remains unchanged at 27,900 to 29,900 boe/d.
Price Impact
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