Obsidian Energy Announces Strategic Capital Program and Guidance for H2 2025

Obsidian Energy has unveiled a $110-$120 million capital program for H2 2025, focusing on infrastructure projects to support future growth. The company aims to maintain stable production levels and prepare for potential expansion in 2026. Obsidian also plans to initiate a Canadian exchange offer to acquire its common shares for InPlay Oil Corp. shares, aiming to optimize its shareholding and enhance shareholder value.

Obsidian Energy Ltd. (TSE: OBE) has announced a significant capital program for the second half of 2025, focusing on infrastructure projects to support future growth. The company aims to maintain stable production levels while preparing for potential expansion in 2026. Additionally, Obsidian Energy plans to initiate a Canadian exchange offer to acquire its common shares for shares of InPlay Oil Corp., aiming to optimize its shareholding and enhance shareholder value.

The capital program, valued at $110 to $120 million, includes infrastructure projects in the Open Creek and Nampa fields, which are expected to facilitate future growth. The company has also outlined plans to moderate near-term production growth and drive growth in per-share metrics through incremental share buybacks. Obsidian Energy expects to maintain average production at around 27,700 boe/d, with the potential to increase production to 29,000 boe/d by the end of 2025.

In addition to the capital program, Obsidian Energy is planning to initiate a Canadian exchange offer to acquire its common shares for shares of InPlay Oil Corp. This offer aims to optimize the company's shareholding and enhance shareholder value. The exchange offer is expected to provide a mechanism for the company to buy back shares while reducing its InPlay holdings, providing additional optionality for future monetization.

The company's second half 2025 guidance includes capital expenditures of $110 to $120 million, with an additional $13 to $15 million in decommissioning expenditures. The capital expenditures are expected to be $62 million for Peace River and $52 million for Willesden Green. The company also expects to participate in six non-operated wells in the second half of 2025.

Overall, Obsidian Energy's strategic capital program for the second half of 2025 focuses on infrastructure development, production stability, and shareholder optimization. The company's plans aim to position it for future growth while addressing market conditions and commodity price volatility.

References:
[1] https://www.tipranks.com/news/company-announcements/obsidian-energy-unveils-strategic-capital-program-for-h2-2025
[2] https://finance.yahoo.com/news/obsidian-energy-announces-second-half-110000208.html