OBSIDIAN ENERGY LTD.

Obsidian Energy Ltd. announced an increase in its syndicated credit facility to $275.0 million from $235.0 million. This move is intended to strengthen the company's financial position and provide flexibility for strategic objectives. The increased facility will support the closing of the previously announced Belly River acquisition and the execution of the second half capital program.

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.

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.

Obsidian Energy announced that shareholders approved all resolutions at its Annual and Special Meeting held on May 7, 2026. Key approvals included the appointment of KPMG LLP as auditor, the election of seven director nominees, and the company's approach to executive compensation. Shareholders also approved amendments to the stock option plan and the allocation of options and share unit awards until May 7, 2029.

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.