- Obsidian Energy (OBE) continued to pay down debt and reported higher funds flow from operations (FFO) in the third quarter
- The company reported $59.3 million in FFO or $0.79 per share, driven in part by higher commodity prices and strong production performance
- The company has again increased its 2021 guidance, expecting Q4 production to average approximately 26,730 boe/d
- Drilling at Obsidian’s Peace River asset resumed this quarter, with four infill development wells planned for the fourth quarter
- Obsidian Energy is an intermediate-sized oil and gas producer with strategic assets in Alberta
- Shares in Obsidian Energy Ltd. (OBE) are up 2.65 per cent, trading at $5.04 per share
Obsidian Energy (OBE) continued to pay down debt and reported higher funds flow from operations (FFO) in the third quarter.
The strong flow of funds was driven in part by higher commodity prices and strong production performance.
The company reported $59.3 million in FFO or $0.79 per share, an increase from $42.3 million last quarter and from $30.4 million in Q3 2020.
Continued strong free cash flow generation resulted in a decrease in net debt to $428.1 million as of September 30, 2021.
Net operating costs of $13.28 per barrel of oil equivalent (boe) were lower than the second quarter of 2021 ($13.71 per boe) but higher than the third quarter of 2020 ($11.36 per boe), resulting from a return to normal operations this year compared to 2020.
Drilling at Obsidian’s Peace River asset resumed this quarter, with four infill development wells planned for the fourth quarter.
The early start to the company’s second-half 2021 development program in June allowed Obsidian to accelerate its 2022 development program with the planned acceleration of three Cardium wells into December 2021.
The 2022 program will benefit by maintaining access to the drilling rigs, minimizing mobilization costs and continuing drilling into 2022.
With continued strong performance from base volumes and new well additions throughout 2021, Obsidian recently increased its full-year production guidance to between 24,300 and 24,500 boe/d.
Now, after acquiring the remaining interest in Peace River, the company has again increased its guidance, expecting fourth-quarter 2021 production to average approximately 26,730 boe/d, and generating funds flow from operations of approximately $88 million.
Obsidian Energy is an intermediate-sized oil and gas producer with strategic assets in Alberta.
Shares in Obsidian Energy Ltd. (OBE) are up 2.65 per cent, trading at $5.04 per share as of 10:56 am ET.