Obsidian Energy Ltd. reported funds flow from operations (FFO) of $65.8 million, or $0.94 per share basic, for the second quarter of 2025, compared to $115.2 million, or $1.51 per share basic, in Q2 2024. Revenues declined due to lower oil prices and reduced production volumes following the Pembina asset disposition. Capital expenditures for the quarter totaled $40.2 million.
The company was highly active in its share buyback program during Q2 2025, repurchasing and canceling 5.4 million shares for $36.6 million at an average price of $6.80 per share. Since the inception of its NCIB in 2023, Obsidian has repurchased and canceled approximately 20 percent of its outstanding shares. Net debt significantly decreased to $270.2 million at June 30, 2025, from $411.7 million at December 31, 2024, primarily due to the cash proceeds from the Pembina disposition.
Operationally, the company brought all wells from its first half program on production and commenced its Clearwater waterflood pilot project in the Dawson field, with water injection planned for Q3 2025. Notable well results include a 546 boe/d IP30 rate at the HVS 14-07 pad and an average IP30 rate of 304 boe/d per well at the Dawson 4-24 waterflood pilot pad. The company also received a non-binding offer for its entire InPlay Oil Corp. share position subsequent to the quarter end.
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