Obsidian Energy: Increased Production Volumes From Heavy Oil And Viking Wells

Summary

  • Obsidian has bumped up its 2022 production guidance by 1,200 BOEPD (from initial guidance) due to increased heavy oil production.
  • It is also drilling new Viking wells, which will further add to its production and is not captured in current guidance.
  • Obsidian is working on refinancing its debt so it doesn't have to continuously deal with near-term debt maturities.
  • It may be able to generate US$300+ million in positive cash flow at current strip.
  • Looking for more investing ideas like this one? Get them exclusively at Distressed Value Investing. Learn More »

Oil pump, oil industry equipment

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Obsidian Energy (NYSE:OBE) is growing its production while attempting to refinance its debt. It has increased its production guidance for 2022 by around 1,200 BOEPD since its initial guidance, with increased volumes

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This article was written by

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Aaron Chow, aka Elephant Analytics has 15+ years of analytical experience and is a top rated analyst on TipRanks. Aaron previously co-founded a mobile gaming company (Absolute Games) that was acquired by PENN Entertainment. He used his analytical and modeling skills to design the in-game economic models for two mobile apps with over 30 million in combined installs. He is the author of the investing group Distressed Value Investing, which focuses on both value opportunities and distressed plays, with a significant focus on the energy sector. Learn more>>

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