Quarterly ResultMay 7, 2026, 01:16 PM
Obsidian Energy Q1 FFO $61M, Net Loss $18.7M; Plans H2 Capital Increase
AI Summary
Obsidian Energy reported Q1 2026 Funds Flow from Operations (FFO) of $61.0 million and a net loss of $18.7 million, primarily due to lower production following the Pembina asset disposition in April 2025 and risk management losses. Despite the year-over-year declines, FFO was ahead of budgeted expectations, supported by stronger oil prices. The company maintained an active development program, advanced waterflood initiatives, and continued shareholder returns through share repurchases, retiring ~1.5 million shares in the quarter. Obsidian Energy plans a material increase to its 2026 capital budget in the second half to drive production growth, with revised guidance expected by late May.
Key Highlights
- Q1 2026 Funds Flow from Operations (FFO) was $61.0M, down from $100.1M in Q1 2025.
- Company reported a net loss of $18.7M ($0.28/share) in Q1 2026, compared to $15.4M net income in Q1 2025.
- Average production in Q1 2026 was 28,733 boe/d, a decrease from 38,416 boe/d in Q1 2025.
- Repurchased and cancelled ~1.5M shares for $18.1M in Q1 2026; ~23% of shares retired since 2023.
- Net debt increased to $279.8M at March 31, 2026, from $240.1M at December 31, 2025.
- Planning a material increase to 2026 capital budget in H2 for production growth.
- Net operating costs decreased to $14.60/boe in Q1 2026 from $15.72/boe in Q1 2025.
- Progressed heavy oil waterflood initiatives and achieved strong initial production rates.