Obsidian Energy Acquires 2,500 boe/d Belly River Assets for $98M, Raises Guidance
OBE•Obsidian Energy completed a $98 million acquisition of 2,500 boe/d of Belly River light oil production (76% liquids) and 35 net sections of land, closing June 30, 2026. The company raised its 2026 production guidance to 29,000–31,000 boe/d and now targets 22% total growth in 2027.
1. Acquisition Details
Obsidian Energy closed its $98 million acquisition on June 30, 2026, adding approximately 2,500 boe/d of high-quality Belly River light oil production (76% liquids) and 35 net sections of land in the Wilson Creek area of Willesden Green.
2. Updated 2026 Guidance
The company increased its 2026 average production guidance to 29,000–31,000 boe/d (midpoint 30,000) while keeping capital expenditures at $300–325 million and adjusting commodity price assumptions, including a WTI price of US$75/bbl.
3. 2027 Growth and Development
Obsidian now targets roughly 22% total production growth and 28% light oil growth in 2027, driven by a planned six-well development program on the acquired lands expected to raise output to about 3,000 boe/d.
4. Financial Impact and Capital Program
Funded via existing credit facilities, the deal supports estimated 2026 funds flow of $310 million ($4.64 per share) and a trailing net debt to FFO of 0.8x by mid-2027, while the overall capital program remains unchanged.
