Obsidian Energy Ltd. (OBE): Business Model Canvas [Dec-2025 Updated]

You're looking for the nuts and bolts of Obsidian Energy Ltd.'s (OBE) business model now that they've sharpened their focus post-divestiture, and honestly, the late 2025 picture is all about disciplined execution in the Peace River heavy oil play and Willesden Green light oil. This isn't just about drilling; it's a strategy where they've aggressively managed the balance sheet-hitting a net debt of just $219.3 million CAD by Q3 2025-while simultaneously driving per-share metrics through an active share repurchase program. To see exactly how their key activities, like the heavy oil development and EOR initiation, translate into their revenue streams and cost structure, dive into the full canvas breakdown below.

Obsidian Energy Ltd. (OBE) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep Obsidian Energy Ltd. running, especially after the big asset sale earlier in 2025. These partnerships are critical for capital access and getting your product to market.

Non-operated interest in Pembina Cardium Unit #11 drilling program

This partnership structure means Obsidian Energy relies on the operator for day-to-day management but contributes capital and shares in the results. You need to track your net exposure carefully.

• Working interest in Pembina Cardium Unit #11: 45 percent.
• Planned non-operated wells in second half 2025: Six total wells, representing 2.7 net wells.
• Non-operated wells participated in first half 2025: Five total wells, representing 2.2 net wells.
• Estimated production from the asset (Q4 2024): Approximately 2,500 net boe/d.

Oil and gas service companies for drilling and completions

While specific service contracts aren't public dollar amounts here, the activity level dictates the spend. Obsidian Energy planned for $52 million in capital expenditures for its Willesden Green area in the second half of 2025, which covers drilling and completions with partners.

Midstream partners for transportation and processing

Transportation is a key cost driver, as seen by the planned infrastructure extensions. For instance, Obsidian Energy is extending infrastructure to its Open Creek field, which will enable future production growth. The company's guidance assumed a US$11.50/bbl WCS differential for the second half of 2025, reflecting midstream costs and market access.

Financial institutions for credit facilities and debt management

This is where the balance sheet management is most visible. Obsidian Energy recently restructured its debt in late 2025 to extend maturities and improve liquidity. Here's the snapshot following the December 3, 2025 closing:

Financial Instrument/Metric	Amount/Rate/Date
Syndicated Credit Facility Availability	$235.0 million
New Senior Unsecured Notes Issued (Dec 2025)	$175.0 million aggregate principal
New Notes Interest Rate	8.125 percent
New Notes Maturity Date	December 3, 2030
Existing Notes Redeemed (Dec 2025)	$80.8 million of 11.95% notes due 2027
Syndicated Facility Drawn Post-Refinancing (Dec 2025)	Approximately $5 million to $8 million outstanding
Net Debt (as of September 30, 2025)	$219.3 million

The company is definitely managing its debt load, using the new notes to replace shorter-term obligations.

Landowners and regulatory bodies for operational permits

Operational continuity depends on these relationships, especially for the Peace River development. Obsidian Energy planned $62 million in capital expenditures for Peace River in the second half of 2025. The company also plans to build an all-season road to its Nampa field, which will bring approximately 200 barrels per day of currently shut-in oil back on production.

Obsidian Energy Ltd. (OBE) - Canvas Business Model: Key Activities

You're looking at the core things Obsidian Energy Ltd. is actively doing to run and grow the business as of late 2025. These aren't just plans; these are the operational focuses driving their current numbers.

Heavy oil development drilling in Peace River (HVS, Dawson)

The heavy oil focus in Peace River is clearly the engine for production growth, especially in the second half of 2025. They are concentrating capital on established fields like Harmon Valley South (HVS) in the Bluesky formation and Dawson in the Clearwater formation. As of the third quarter of 2025, heavy oil production stood at 12,586 bbl/d. For the second half of 2025, they planned $62 million in capital expenditures for Peace River, targeting an average production of 13,500 boe/d. By early September 2025, they were running two drilling rigs in Peace River, having rig released 13 (13.0 net) wells out of their 28 (28.0 net) well second half program. This activity led to a record seven-day production average in Peace River of approximately ~14,500 boe/d around that time. The first half of 2025 also saw the area hit a new production high of 14,000 boe/d.

Light oil development in Willesden Green Cardium and Belly River

The light oil assets, primarily in Willesden Green, provide stable cash flow for reinvestment, though they are getting a renewed development push. In the third quarter of 2025, light oil production was 4,979 bbl/d. The second half 2025 plan allocated $52 million in capital expenditures to Willesden Green, supporting an average production of approximately 14,200 boe/d across light oil assets. This activity includes development and exploration/appraisal drilling across the Cardium, Belly River, and Mannville formations, with one rig operating. Honestly, drilling the first horizontal Belly River well in the Crimson field is a key marker for this segment's activity in the latter half of the year.

Waterflood (Enhanced Oil Recovery) program initiation in Clearwater

The initiation of the Clearwater waterflood pilot is a major step for future reservoir recovery in Peace River. During the first half of 2025, Obsidian Energy planned approximately $11 million for waterflood projects. They commenced drilling the pilot at the Dawson 4-24 Pad, which included three (3.0 net) producer wells and two (2.0 net) single leg injector wells. By September 2025, all five (5.0 net) primary producers on the Dawson 4-24 Pad were on production, along with the two (2.0 net) water injectors, and water injection had started. For the second half of 2025, approximately $8 million was budgeted for waterflood capital.

Active share buyback program to drive per-share metrics

Obsidian Energy Ltd. is clearly using its capital structure to directly benefit shareholders by reducing share count. The Normal Course Issuer Bid (NCIB) renewed in March 2025 authorized the purchase of up to 7,144,408 common shares (10 percent of the public float). The execution was significant: by August 31, 2025, they had completed the repurchase of 7,144,408 shares for CAD 60.95 million under that program. In the second quarter of 2025 alone, they cancelled 5.4 million shares for $36.6 million. To be fair, since the buyback program started in 2023, they had repurchased and cancelled approximately 20 percent of their shares by late July 2025, leaving 67.1 million outstanding. In the third quarter of 2025, they bought back another 1.1 million shares for CAD 8.7 million.

Exploration/appraisal drilling to delineate land base

Delineation drilling is essential to prove up the inventory for future development, especially in the first half of the year when winter access is key. The first half 2025 capital plan included approximately $24 million for Peace River exploration/appraisal. They planned to drill four (4.0) net whipstock wells during that period, with three drilled and core samples collected by May 2025. However, the second half 2025 capital allocation shows a shift, with approximately 70 percent of the Peace River drilling program utilizing existing pads to target lower-risk development areas.

Here's a quick look at the capital allocation supporting these activities for the second half of 2025:

Asset Area	H2 2025 Planned Capital (millions)	Production Support (boe/d)
Peace River (Heavy Oil)	$62 million	13,500
Willesden Green (Light Oil)	$52 million	~14,200 (Total Light Oil Support)
Waterflood Capital (Included in above)	Approximately $8 million	N/A

The total planned capital expenditures for the second half of 2025 were between $110 and $120 million.

Obsidian Energy Ltd. (OBE) - Canvas Business Model: Key Resources

You're looking at the core assets that underpin Obsidian Energy Ltd.'s entire operation right now, as of late 2025. These aren't just line items; they are the physical and financial foundations driving near-term performance and future inventory.

The company's resource base is clearly segmented, focusing on two primary plays. The core heavy oil assets in Peace River region remain central, evidenced by the steady activity reported through Q3 2025. This region saw two drilling rigs operating during the third quarter, with 11 net Clearwater and 2 net Bluesky wells rig released as part of the second half 2025 capital program. Production from the heavy oil segment in Q3 2025 averaged 12,586 bbl/d.

The light oil side is anchored by the light oil assets in Willesden Green and Cardium formations. This area is characterized by its proven Cardium potential and emerging Belly River upside, with a recent Belly River well drilled at Crimson in Q3 2025 validating a new development fairway. The combined Willesden Green & PCU#11 assets contributed 12,401 boe/d in Q3 2025 production. The acreage here is extensive, totaling 226 net sections prospective for Cardium, Belly River, and Mannville plays, with 152 net sections specifically prospective for the Cardium formation.

A critical element supporting both plays is the owned and operated oil and gas infrastructure and facilities. The Willesden Green assets benefit from flexible operated infrastructure designed to maximize production without major new spend. Furthermore, activity in Peace River suggests supporting infrastructure is in place, though operating costs in Q3 2025 were elevated due to trucking and processing fees related to expanded Peace River heavy oil activities.

The longevity of the resource base is quantified by the reserves inventory. Obsidian Energy Ltd. (OBE) reports a Proved and Probable (2P) reserves inventory of 17.1 RLI (years). This figure speaks to the long-term drilling inventory available to the company.

Finally, the financial health of the key resources is reflected in the balance sheet management. Obsidian Energy Ltd. (OBE) successfully executed on debt reduction initiatives, including asset sales, leading to a Net debt reduced to $219.3 million CAD as of Q3 2025. This compares to net debt of $411.7 million CAD at the end of 2024.

Here's a quick view of the Q3 2025 production breakdown that these resources supported:

• Total Production (Q3 2025): 27,316 boe/d
• Heavy Oil Production (Q3 2025): 12,586 bbl/d
• Light Oil Production (Q3 2025): 4,979 bbl/d
• NGL Production (Q3 2025): 1,955 bbl/d

The company's ability to deploy capital against these assets is also a key resource, with Q3 2025 capital expenditures totaling $65.3 million. Finance: draft 13-week cash view by Friday.

Obsidian Energy Ltd. (OBE) - Canvas Business Model: Value Propositions

Focused exposure to high-growth Peace River heavy oil play is a core value proposition, evidenced by capital allocation decisions. For the first quarter of 2025, five drilling rigs were focused on exploration/appraisal and development activities in Peace River, with capital expenditures totaling $128.4 million for the quarter. By the third quarter of 2025, the company reported a record seven-day production average in Peace River of approximately 14,500 boe/d.

Stable, low-decline light oil production from Willesden Green provides a cash flow base. In the second quarter of 2025, light oil production averaged 6,314 bbl/d, which decreased to 4,979 bbl/d in the third quarter of 2025, alongside activity resuming with a rig in Willesden Green during the second half of 2025.

Increased per-share metrics via active share repurchase program demonstrates a commitment to returning capital. For the nine months ended September 30, 2025, Funds Flow from Operations (FFO) per share basic was $3.07. During the third quarter of 2025 alone, Obsidian Energy repurchased and cancelled approximately 1.1 million shares under the Normal Course Issuer Bid (NCIB) for $8.7 million. The renewed NCIB, effective March 3, 2025, allows for the purchase of up to 7,144,408 common shares.

Reduced decommissioning liabilities post-Pembina disposition strengthens the balance sheet. The disposition of operated Pembina assets closed on April 7, 2025, with the buyer assuming associated liabilities. Net debt was $411.7 million at December 31, 2024, which was reduced to $219.3 million by September 30, 2025, partly due to the disposition proceeds being applied to debt. Decommissioning expenditures for the first nine months of 2025 totaled $18.5 million.

Operational excellence drives strong well economics and returns, particularly in the heavy oil segment. The company reported strong initial production (IP) rates from its 2025 drilling program. For example, two follow-up wells on the HVS 14-07 Pad (Bluesky) achieved an average IP30 per well of 385 boe/d (98% oil). Similarly, two wells on the Dawson 4-24 Pad (Clearwater) showed an average IP30 per well of 316 boe/d (100% oil). Total production for Q3 2025 was 27,316 boe/d.

Here's a quick look at the production and financial context for these value drivers as of the nine months ended September 30, 2025:

Metric	Value (9M 2025)	Unit/Context
Heavy Oil Production (Q3 2025 Average)	12,586	bbl/d
Light Oil Production (Q3 2025 Average)	4,979	bbl/d
Total Production (Q3 2025 Average)	27,316	boe/d
Funds Flow from Operations (Basic Per Share)	$3.07	$/share
Net Debt (as of September 30, 2025)	$219.3 million
Shares Repurchased (Q3 2025)	1.1 million	Shares

The company's strategy is supported by specific operational achievements:

• Drilling two (2.0 net) follow-up wells on the HVS 14-07 Pad achieving an average IP30 per well of 385 boe/d.
• Two (2.0 net) wells on the Dawson 4-24 Pad achieved an average IP30 per well of 316 boe/d.
• Total capital expenditures for the nine months ended September 30, 2025, were $233.9 million.
• Net debt reduced from $411.7 million at year-end 2024 to $219.3 million by September 30, 2025.

Obsidian Energy Ltd. (OBE) - Canvas Business Model: Customer Relationships

Direct sales contracts with industrial buyers and energy traders are underpinned by the realized commodity prices achieved across Obsidian Energy Ltd.'s production mix. For the three months ended June 30, 2025, the average sales prices before hedging were:

Commodity Type	Average Sales Price (Q2 2025)
Light oil	$91.09 /bbl
Heavy oil	$61.27 /bbl
NGL	$39.42 /bbl
Natural gas	$2.00 /mcf

The transactional relationship is directly tied to the delivery of this production, which averaged 28,943 boe per day for the second quarter of 2025, decreasing to 27,316 boe per day in the third quarter of 2025 following the Pembina asset disposition in April 2025.

Dedicated investor relations for capital market stakeholders is maintained through direct contact channels, with the Investor Relations email listed as investor.relations@ObsidianEnergy.com. The company hosted its 2025 Annual and Special Meeting on May 7, 2025, where shareholders approved all outlined resolutions. Management provided a corporate update via webcast presentation at 2:00 p.m. MT following the formal meeting.

The financial relationship with capital providers is managed through debt reduction and return of capital activities. Obsidian Energy Ltd. reported net debt of $219.3 million as of September 30, 2025. In 2025, the company repurchased and cancelled 7.1 million common shares for a total consideration of approximately $51.1 million under its Normal Course Issuer Bid (NCIB) approval, which was completed in August 2025.

Contractual agreements with midstream operators are essential for delivering production volumes, which for the first half of 2025 totaled 33,653 boe/d on average. Transportation costs were a component of the realized netback, which stood at $33.10/boe in Q1 2025 and $33.40/boe in Q1 2024. The company also monetized its InPlay Oil Corp. share position in August 2025, receiving proceeds of $91.4 million, which was applied against debt and to accelerate share buybacks.

Regulatory compliance and community engagement are stated commitments for Obsidian Energy Ltd. The company is committed to high Health & Safety standards, solid governance policies, and ongoing community engagement. The company's strategy includes utilizing free cash flow from light oil assets to invest in the Peace River heavy oil asset.

• Shareholder approvals secured for all 2025 Annual and Special Meeting resolutions on May 7, 2025.
• Completed the NCIB program, buying back and cancelling 7.1 million shares.
• The company expects to renew its NCIB in March 2026.
• The company's strategy involves using free cash flow from light oil assets to invest in the Peace River heavy oil asset.

Finance: finalize Q3 2025 debt covenant compliance check by next Tuesday.

Obsidian Energy Ltd. (OBE) - Canvas Business Model: Channels

Obsidian Energy Ltd. uses several distinct channels to move its production to market and communicate with stakeholders, evolving significantly after the April 7, 2025, disposition of its operated Pembina assets to InPlay Oil Corp.

Direct sales to oil refineries and natural gas processing plants

The majority of Obsidian Energy Ltd.'s revenue is generated from the sale of crude oil, which is sold directly or via commodity markets to downstream purchasers like refineries and processing plants. The realized sales prices fluctuate based on the commodity type and prevailing market conditions.

Here are the average realized sales prices for the first half of 2025:

Product	Q1 2025 Average Sales Price (Before Hedging)	Q2 2025 Average Sales Price (Before Hedging)
Light oil	$99.46 per barrel	$91.09 per barrel
Heavy oil	$70.14 per barrel	$61.27 per barrel
Natural gas	$2.18 per mcf	$2.00 per mcf

Pipeline and trucking infrastructure for product delivery

Product delivery relies on a mix of infrastructure, with transportation costs being a key component of the netback calculation. Increased reliance on trucking, particularly in the Peace River area, has recently impacted operating costs.

Net operating costs per barrel of oil equivalent (boe) show the impact of these delivery methods:

• Net operating costs in Q1 2025 were $1,572 per boe.
• Net operating costs increased to CAD$13.54 (US$9.60) per BOE in Q2 2025.
• Net operating costs in Q3 2025 rose to CAD$15.01 (US$10.65) per BOE, attributed partly to increased trucking costs and higher Peace River processing fees.
• Obsidian Energy Ltd. expects net operating costs to decrease in Q4 2025 to approximately CAD$14 per BOE.

Energy trading companies for commodity sales and hedging

Obsidian Energy Ltd. engages in risk management activities, which are reported as gains or losses on risk management, indicating interaction with energy trading markets for hedging purposes. For the first quarter of 2025, the risk management gain was $0.78 per boe, contributing to a net sales price of $61.89 per boe.

The company also initiated a pre-paid equity forward program in Q3 2025 to hedge its outstanding share-based incentive plan awards.

Non-operated unit participation (e.g., Pembina Cardium Unit #11)

Obsidian Energy Ltd. retains a non-operated interest in the Pembina Cardium Unit #11 following the April 7, 2025, asset disposition. This participation serves as a channel for continued, albeit non-operated, production and development activity in that area.

Activity related to this channel includes:

• Participation in five (2.2 net) non-operated wells in Pembina Cardium Unit #11 during the first half of 2025.
• Anticipated participation in six (2.7 net) non-operated wells in the second half of 2025.
• The final well from the Q1 2025 non-operated program (0.45 net) achieved a gross IP30 of 317 boe/d (92% oil).
• Planned capital expenditures over the second half of 2025 in Light Oil assets (which includes this participation) total $52 million.

Corporate website and financial filings for investor communication

Investor communication channels are standardized for public reporting and direct access to corporate information.

Key digital channels for investors include:

• Corporate website: www.obsidianenergy.com.
• Filings on SEDAR+: www.sedarplus.ca.
• Filings on EDGAR: www.sec.gov.

For the nine months ended September 30, 2025, the company reported $215.6 million in Funds Flow from Operations.

Obsidian Energy Ltd. (OBE) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Obsidian Energy Ltd.'s output as of late 2025, based on their Q3 2025 operational profile following the Pembina divestiture.

The primary physical product customers are entities that process or refine the raw hydrocarbons Obsidian Energy extracts, mainly from the Peace River and Willesden Green areas.

Customer Type	Product Sold	Q3 2025 Average Volume	Q3 2025 Average Sales Price (Before Hedging)
Oil refineries	Light crude oil	4,979 bbl/d	$91.09/bbl
Oil refineries	Heavy crude oil	12,586 bbl/d	$61.27/bbl
Natural gas processing plants	Natural gas	47 mmcf/d	$2.00/mcf
Downstream/Midstream Purchasers	NGLs (Natural Gas Liquids)	1,955 bbl/d	$39.42/bbl

The total production base supporting these sales in Q3 2025 averaged 27,316 BOEPD, which was 64 percent oil and 71 percent liquids.

For commodity market liquidity, Obsidian Energy Ltd. engages with counterparties, evidenced by their hedging activities and the nature of their sales, though specific trading company names aren't detailed in the public production reports.

• Q4 2025 planned hedging for WCS Differential involved 6,000 bbl/d at a differential of ($19.30).
• Q3 2025 actual sales included a WCS Differential of ($18.83) on 7,750 bbl/d.

The investor segment is a key focus, especially given the company's capital allocation strategy post-divestiture.

• Obsidian Energy Ltd. repurchased approximately 1.1 million shares in Q3 2025 for CAD$8.7 million.
• The average repurchase price in Q3 2025 was CAD$7.99 per share.
• As of July 29, 2025, there were 67.1 million common shares outstanding.
• Net debt at the end of Q3 2025 was CAD$219.3 million.

Specific industrial clients with unique hydrocarbon needs beyond standard refinery feedstock are not explicitly quantified in the latest public operational data, but the production mix suggests sales into various industrial supply chains for heavy oil, light oil, NGLs, and natural gas.

Obsidian Energy Ltd. (OBE) - Canvas Business Model: Cost Structure

You're looking at the hard costs Obsidian Energy Ltd. (OBE) faces to keep the lights on and drill new wells as of late 2025. This structure is heavily influenced by their development focus and the recent asset sale.

Capital Expenditures (CapEx) represent a significant outlay, driven by the development drilling program. The total capital program for 2025 is substantial, reflecting the commitment to growth, especially in Peace River and Willesden Green. Based on reported figures, the total development CapEx for 2025 is estimated to be in the range of $278.6 million to $288.6 million CAD, calculated from the first half spend plus the second half guidance.

Here's a breakdown of the capital deployment:

• First half 2025 capital expenditures totaled $168.6 million (Q1: $128.4 million; Q2: $40.2 million).
• Second half 2025 development capital expenditure guidance is between $110 million and $120 million CAD.
• Second half CapEx breakdown: $62 million for Peace River and $52 million for Willesden Green.
• Second half CapEx includes approximately $8 million for waterflood capital.

Operating Costs are a key area of focus, especially following the Pembina Disposition, which removed higher-cost assets. However, recent operational challenges have pushed costs up temporarily.

Metric	Q3 2025 Actual (CAD/boe)	H2 2025 Guidance Midpoint (CAD/boe)	Q4 2025 Expectation (CAD/boe)
Net Operating Costs per boe	$15.01	$14.48	Approximately $14

The increase in Q3 2025 net operating costs to $15.01 per boe from $13.54 per boe in Q2 2025 was attributed to specific operational pressures. These pressures are a direct cost component you need to watch:

• Increased trucking costs associated with Peace River development.
• Higher processing fees specifically tied to the expanded Peace River heavy oil operations.

Decommissioning Expenditures are a non-discretionary cost that Obsidian Energy is actively managing. For the first nine months of 2025, these expenditures totaled $18.5 million CAD. The second half 2025 guidance alone allocated $13 million to $15 million CAD for this purpose.

Financing Costs have seen a structural reduction due to debt management activities following the Pembina sale. Long-term debt stood at $145.4 million as of September 30, 2025, a significant drop from $411.7 million at the end of 2024. This was aided by the August 2025 partial redemption of $30.0 million of senior unsecured notes, leaving $80.8 million outstanding, which directly translates to future interest savings. Also, net debt at September 30, 2025, was $219.3 million.

Finance: draft 13-week cash view by Friday.

Obsidian Energy Ltd. (OBE) - Canvas Business Model: Revenue Streams

Obsidian Energy Ltd.'s revenue streams are fundamentally tied to the sale of its produced commodities, which are heavily weighted towards oil production from its core areas. The company explicitly links its financial performance to benchmark commodity prices like WTI (West Texas Intermediate) for crude oil and AECO (Alberta Energy Company) for natural gas.

The primary sources of revenue are:

• Crude Oil Sales, sourced significantly from the Peace River area (heavy oil) and Willesden Green (light oil).
• Natural Gas and Natural Gas Liquids (NGLs) Sales.

The financial results for the first nine months of 2025 reflect these operational activities, showing a Funds Flow from Operations (FFO) of $215.6 million CAD for the period ended September 30, 2025. This FFO figure is a key internal measure of cash generation before considering capital investment and changes in working capital.

Additional, non-recurring or non-core revenue events also contribute to the overall financial picture. For instance, the monetization of an asset holding provided a significant cash inflow: proceeds from asset dispositions totaled $91.4 million CAD from the sale of the InPlay Oil Corp. common share position in August 2025. This specific transaction resulted in a recorded gain of $15.2 million within net income for the period.

The commodity mix and production profile for the third quarter of 2025 illustrate the underlying revenue base:

Production Component	Average Daily Production (Q3 2025)	Unit
Heavy Oil (primarily Peace River)	12,586	bbl/d
Light Oil (including Willesden Green)	4,979	bbl/d
Natural Gas Liquids (NGLs)	1,955	bbl/d
Natural Gas	47	mmcf/d
Total Production	27,316	boe/d

The sensitivity of Obsidian Energy Ltd.'s expected Funds Flow from Operations for the second half of 2025 demonstrates the direct link to market pricing. Here's the quick math on how benchmark price changes impact estimated H2 2025E FFO:

• For every $1.00 US/bbl change in WTI, estimated H2 2025E FFO changes by $0.7 million CAD.
• For every CAD$0.25/GJ change in AECO, estimated H2 2025E FFO changes by $0.3 million CAD.

Also, changes in the foreign exchange rate affect realized revenue, with a $0.01 CAD/USD fluctuation estimated to impact H2 2025E FFO by $0.2 million CAD.