Obsidian Energy Ltd. (OBE): Marketing Mix Analysis [Dec-2025 Updated]

You're digging into the late 2025 strategy for Obsidian Energy Ltd. (OBE), and honestly, the story isn't about flashy marketing; it's about disciplined capital allocation driving per-share value. As an analyst who's seen a few cycles, I can tell you the focus is sharp: they are pushing heavy oil growth at Peace River while running a tight ship, evidenced by moderating 2H 2025 CapEx to $110-$120 million to fuel that active share buyback, which already took out 7.1 million shares this year. With Q3 production hitting 27,316 boe per day and a price deck built around US$65.00/bbl WTI, the 'Place' is streamlined to the core Western Canada Sedimentary Basin assets, making the 'Promotion' really just about delivering on those buybacks and keeping debt low at $219.3 million. Dive in below; we break down exactly how these four P's are set up to translate that production into shareholder returns.

Obsidian Energy Ltd. (OBE) - Marketing Mix: Product

The product Obsidian Energy Ltd. (OBE) offers to the market centers on the extraction and sale of hydrocarbons, primarily crude oil and natural gas liquids (NGLs), which serve as the core revenue drivers for the business. The quality and composition of these products, particularly the heavy oil focus, define the offering's value proposition in the energy sector.

You need to look at the recent output figures to gauge the current product scale. For the third quarter of 2025, Obsidian Energy Ltd. reported an average production of 27,316 boe per day. This production mix was characterized by a significant liquids component, reported at 71% liquids for the quarter. This output level was slightly lower than Q2 2025, which was expected due to the timing of the second half 2025 development program and the earlier disposition of the Pembina assets.

Here is the breakdown of the total production for the three months ended September 30, 2025:

The strategic development of the product portfolio is heavily weighted toward increasing the proportion of heavy oil. This strategic shift focuses on heavy oil growth specifically at the Peace River asset, which is described as a high-quality, stable, cold-flow heavy oil resource across a large, contiguous land base of over 700 sections. The company is actively developing this area, having operated two drilling rigs there during the third quarter of 2025.

To enhance recovery and future production from this core asset, development includes Clearwater waterflood projects for enhanced recovery. The commencement of water injection on pilots in both the Bluesky and Clearwater formations at Peace River occurred during the second half of 2025, following the successful completion of the first Peace River Clearwater waterflood pilot on the Dawson 4-24 Pad. The company is excited for the opportunity to implement findings from these pilots on a larger scale.

The light oil assets, such as those in Willesden Green, play a distinct role in the product strategy. These light oil assets are maintained to provide stable cash flow for reinvestment into the heavy oil growth areas. For instance, during the second half of 2025, Obsidian Energy Ltd. was operating one rig in Willesden Green, drilling the first Belly River well in the Crimson field. The company's stated strategy is to drive heavy oil production growth at Peace River to approximately 25,000 boe/d in 2026, utilizing the stable cash flow from these light oil assets for reinvestment.

Operationally, the cost structure directly impacts the net value of the product sold. Obsidian Energy Ltd.'s net operating costs per BOE in Q3 2025 increased to CAD$15.01 (US$10.65) per BOE, up from CAD$13.54 per BOE in Q2 2025, largely due to increased trucking costs and higher Peace River processing fees. The company expects these costs to decrease in Q4 2025 to approximately CAD$14 per BOE. The financial performance tied to the product sales in Q3 2025 resulted in funds flow from operations of $49.7 million ($0.74 per share basic).

The product strategy is clearly aimed at increasing output, as evidenced by the increased second half 2025 production guidance, which was raised to a range of 27,800 - 28,300 boe/d.

Obsidian Energy Ltd. (OBE) - Marketing Mix: Place

Obsidian Energy Ltd. focuses its distribution and operations entirely within the Western Canada Sedimentary Basin.

The distribution strategy is intrinsically linked to the company's asset base, which has been streamlined following a major transaction. The core of the current operations is concentrated in two primary areas: Peace River, which is the heavy oil focus, and Willesden Green, which holds light oil assets.,

The divestiture of operated Pembina assets to InPlay Oil Corp. closed on April 7, 2025., This move was designed to sharpen the focus on the core Peace River asset. The total consideration for the sale was approximately $320 million., The cash proceeds component was about $211 million after interim closing adjustments. Obsidian Energy retained its non-operated interest in the Pembina Cardium Unit #11.

This shift in asset base is reflected in the production volumes. For instance, total production averaged 38,416 boe/d in the first quarter of 2025, but this decreased to an average of 28,943 boe/d in the second quarter of 2025 following the disposition., The company expects to exit 2025 at approximately ~29,000 boe/d.

The company's product moves into North American commodity markets. The realized sales prices for Q2 2025 were $91.09/bbl for light oil and $61.27/bbl for heavy oil. Guidance for the first half of 2025 was based on WTI pricing of US$71.00/bbl and WCS differentials of US$14/bbl.

To support future growth, particularly in the heavy oil segment, infrastructure development is a current focus. Here's a look at the asset concentration and the resulting production profile shift.

The ongoing development plan includes specific infrastructure work to secure long-term access and capacity.

• Regional infrastructure project is under construction at the Open Creek field.
• Infrastructure projects are underway in both Open Creek and Nampa fields.
• Delineation drilling at Nampa is preceding the construction of year-round access.
• The company drilled six (6.0 net) wells in Peace River during Q2 2025.
• The second half 2025 capital program targets 28 (28.0 net) operated wells.,

Obsidian Energy Ltd. (OBE) - Marketing Mix: Promotion

You're looking at how Obsidian Energy Ltd. communicates its value proposition to the market, which, for an energy producer, heavily leans toward the investment community rather than direct consumer product marketing.

Investor relations drives per-share metrics, not product marketing. This focus is evident in the company's capital allocation toward its Normal Course Issuer Bid (NCIB).

Obsidian Energy Ltd. actively managed its share count in 2025, signaling management's view on stock valuation. The company repurchased and cancelled approximately 7.1 million shares in 2025 as of late July. By the end of October 2025, the total completed repurchase under the renewed NCIB reached 7,144,408 shares.

Transparency is maintained through regular engagement. Management hosts webcast presentations after quarterly results. For instance, President and CEO Stephen Loukas and other management members hosted a webcast presentation following the 2025 Annual & Special Meeting of Shareholders on Wednesday, May 7, 2025. The Q1 2025 Results and Corporate Update Webcast was also held in association with that meeting. You can expect the Q4 2025 Results release before North American markets open on Thursday, February 19, 2026.

The company uses its employer brand as a promotional asset for talent acquisition. Obsidian Energy Ltd. was recognized as one of Canada's Top Small & Medium Employers for 2025. This marks the second consecutive year for this distinction, and Obsidian Energy Ltd. was the only oil and gas company to receive it.

Access to core financial information is managed through regulatory filings, which serve as primary communication for investors. Financial documents are posted on SEDAR+ and EDGAR for investor access. For example, the Q1 2025 financial statements were available on SEDAR+ (www.sedarplus.ca) and EDGAR (www.sec.gov) on or about May 7, 2025. The Annual Report on Form 40-F for the year ended December 31, 2024, was also filed with the U.S. Securities and Exchange Commission via EDGAR.

Investor communications are supported by direct channels:

• Investor Relations email: investor.relations@obsidianenergy.com
• Investor Relations toll-free telephone: 1-888-770-2633
• Corporate website for presentations: www.obsidianenergy.com

Obsidian Energy Ltd. (OBE) - Marketing Mix: Price

Pricing for Obsidian Energy Ltd. is fundamentally tied to global commodity benchmarks, which dictate realized sales prices before differentials and hedging impacts.

The forward-looking pricing assumptions used for guidance directly influence the perceived value and financial planning for the second half of 2025.

The cost structure reflects operational realities, with Q3 2025 showing elevated per-unit expenses before expected moderation.

• Q3 2025 net operating costs were reported at $15.01 per boe.
• Expected Q4 2025 net operating costs were projected to be reduced to approximately CAD$14 per BOE.

Capital deployment strategy reflects a prioritization of shareholder returns over aggressive near-term growth, which impacts the capital component of the overall pricing strategy by moderating future supply growth.

The capital expenditure plan for the second half of 2025 was moderated to support this focus.

• Development capital expenditures guidance for 2H 2025 was set between $110 to $120 million.
• Decommissioning expenditures guidance for 2H 2025 was set between $13 to $15 million.

The resulting balance sheet strength, a key indicator of financial flexibility derived from pricing and cost management, improved significantly.

This net debt level at September 30, 2025, was achieved after applying proceeds from the Pembina divestiture and the InPlay share disposition.