Obsidian Energy produced 28,733 boe/d in the first quarter, down from 38,416 boe/d year-over-year, generating $61.0 million in funds flow from operations and reporting a net loss of $18.7 million. Average sales prices were $97.23 per barrel for light oil, $69.40 per barrel for heavy oil and $2.38 per mcf for natural gas, resulting in a netback of $26.76 per boe after a $5.96 per boe risk-management loss.

The company renewed its normal course issuer bid, repurchasing and canceling approximately 1.5 million shares in Q1, and expanded its prepaid equity forward program to cover about 5.1 million shares at an average price of $9.56 per share. Long-term debt declined to $245.3 million and net debt to $279.8 million, enhancing financial flexibility and reducing share-based compensation volatility.

Obsidian plans a material increase to its H2 2026 capital budget to accelerate high-netback oil drilling in Peace River and Willesden Green. The company is advancing heavy oil waterflood pilots with new injectors and pilot wells aimed at improving long-term recovery rates.