Canada's Obsidian Energy Q3 funds flow rises on higher oil prices
OBE•Obsidian Energy said Q3 funds flow from operations and adjusted funds flow rose year over year on higher oil prices; net income increased slightly to C$18 million. It reaffirmed a December 2026 exit production target of about 31,000 boe/d and expects average production growth of about 20% in 2027, assuming constructive commodity prices.
1. Q3 results
Obsidian Energy reported Q3 net income of C$18 million, up slightly from a year earlier. Cash flow from operating activities was C$87 million and capital expenditures were C$75.60 million. The company said higher realized oil prices were the main driver of increased funds flow from operations and net income.
2. Production outlook
The company reaffirmed its target for a December 2026 exit production rate of about 31,000 boe/d and expects average production growth of about 20% in 2027 versus 2026, assuming constructive commodity prices. It plans to add a third drilling rig in Peace River in December to accelerate its winter drilling program.
3. Operations and shares
Recently acquired Belly River assets outperformed expectations, contributing to production growth, while early results from new Belly River wells and optimization efforts supported higher light-oil production. Obsidian Energy repurchased and cancelled 0.9 million shares for C$13 million in Q3.
