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Obsidian Energy Ltd. (OBE) CEO David French on Q2 2018 Results - Earnings Call Transcript

Aug. 02, 2018 11:12 AM ETObsidian Energy Ltd. (OBE), OBE:CA14 Comments
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Obsidian Energy Ltd. (NYSE:OBE) Q2 2018 Results Earnings Conference Call August 2, 2018 8:30 AM ET


Brad Monaco - Manager, Corporate Planning & Investor Relations

David French - President and Chief Executive Officer

David Hendry - Chief Financial Officer

Aaron Smith - Vice President, Development & Operations


Jeremy McCrea - Raymond James

Shailender Randhawa - RBC Capital Markets


Good morning. My name is Dan, and I will be your conference operator today. At this time, I would like to welcome everyone to Obsidian Energy's Second Quarter Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and answer-session. [Operator Instructions] Thank you.

I would now like to turn the conference over to Brad Monaco, Manager of Corporate Planning and Investor Relations. You may begin your conference.

Brad Monaco

Good morning, everyone. Thanks for joining us. This morning, we will be discussing our 2018 second quarter financial and operational results. The format of this call will be audio only.

With me this morning and speaking on the call is Dave French, President and Chief Executive Officer; David Hendry, Chief Financial Officer; and Aaron Smith, our new Vice President of Development.

Before I turn the call over to Dave, I’d like to point out that we will refer to forward-looking information in connection with Obsidian Energy in the subject matter of today’s call. By its nature, this information contains forecasts, assumptions and expectations about future outcomes, so we remind you it is subject to the risks and uncertainties affecting every business, including us. Please refer to our public disclosure filings available on both SEDAR and EDGAR systems for a full discussion of significant factors and risks that could affect Obsidian Energy or could affect future outcomes for Obsidian Energy. Go ahead, Dave.

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Comments (14)

I am just glad that no reverse-split was brought up. Will keep holding.
What a long wait......stock price is pathetiic...markets at all time highs wti at 67 and obe at like a buck........but its not obes fault its the cad oil sector in general its out of favor..it too will have its time......i really cant see much more punishment.....the sector has been beaten dry
Pistol Pete have you been asleep for the last 5 years. Dave Roberts cleaned up a lot of the mess from the old management team. French is back to screwing thing up!
I think Dave Roberts cleaned up the BS. But he didn’t lay foundation for additional drilling. It was also mess at that time. They didn’t had plan for capital spending and drilling plans or knowledge on depletion rate.

I think French organized it. French made the biggest mistake by putting hedges but which other companies haven’t done it. French was bit slow in expediting drilling but remember till last oct, prices were hovering around mid 40s. Who would expedite drilling at that price?

He is not greatest of all but not worst either.
Which other companies did not put hedges on? First Why put hedges on such a large percentage of liquids? BTW Continental did not put hedges on back then (I'm not sure what they are doing today)

Ok so how long are you supporters going to give French? When will the rubber meet the road?
Long Player profile picture
Continental sold their hedges prematurely a few years back and cost the company hundreds of millions of dollars in lost protection. No one ever gets hedges "right". All hedges do is make the cash flow predictable. If oil prices fall, then management is a hero. Here they are a goat for now.
Guys. David French is a top executive who was dealt a terrible hand. While the compensation is rather high, that is what it takes to acquire top talent. He is doing his best and fixed many wrongs. I say he needs a couple years to get the company moving on a positive direction again and get the stock to turn around. At least they haven’t announced a buyback and sinking good money after bad!!! That would have just less cash for executing the turnaround. Instead of criticizing management we should send them our constructive thoughts and thank them for a job well don even though there is much more to do.
Ruben123 profile picture
you must be a short enjoying nice profit.
This has to be sarcasm, right? All the ducks were in a row when he came on board - debt was taken care of, covenants were in line, oil price was rising. He may be a top executive but in this circumstance he has executed a big shit and forgotten to wipe.
Nothing is more constructive than firing French
Gettin-Old profile picture
Sad thing to have watched this company be destroyed over the years by dishonorable management. By the sound of it the management made sure they were shielded from any loss.
It is time to replace David French. Time to walk the talk.
Admit to only reading the first page but my comments are primarily focused on past mistakes by management. Punctuated in the fact that shareholders deserve much more than management has delivered with their compensation packages have been RICH!
Its time to ehance shareholder value for all the expense you all take from this enterprise and its assets!
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