What Obsidian Energy does

Obsidian Energy Ltd. is an intermediate-sized Canadian upstream oil and gas producer, headquartered in Calgary, Alberta, with shares listed on the Toronto Stock Exchange and NYSE American (OBE). The company operates a balanced portfolio across three asset areas in Alberta: heavy oil at Peace River (Bluesky and Clearwater formations), light oil at Willesden Green and PCU#11 (Cardium and Belly River formations), and light oil at Viking. Following the June 2026 acquisition of Belly River assets from Highwood Asset Management, Obsidian Energy became the largest Belly River producer in Western Canada. Q1 2026 production was 28,733 boe/d, with 2026 full-year guidance of 27,900-29,900 boe/d and a stated ~73% oil and NGL weighting.

The company's core technology is conventional exploration, development, and production using horizontal multi-well drilling, hydraulic fracturing, and waterflood enhanced oil recovery — including pilots at Dawson, Nampa, and West Dawson fields to improve Clearwater recovery. Its proprietary features are domain-specialized: Belly River drilling expertise (IP120 > IP30 as wells stabilize), stacked light oil development in Willesden Green, and Peace River heavy oil infrastructure. The company employs ISN's ISNetworld platform for contractor and safety compliance management, expanded in April 2026 with API procurement integration and CultureSight employee feedback tooling.

Obsidian Energy generates revenue by selling crude oil, natural gas, and NGLs at market-determined prices to refiners and midstream processors via pipeline and trucking; pricing is fully commodity-driven (WTI, MSW/WCS differentials, AECO). The company hedges commodity and FX exposure through swaps, collars, and forwards, and supplements operating revenue with periodic asset disposition proceeds (e.g., $325M from the April 2025 Pembina sale). Customer engagement is B2B and undifferentiated, while the company's primary stakeholder relationships are with institutional investors, sell-side analysts (BMO, Peters & Co., Raymond James, RBC, Schachter Energy Research), and shareholders — engaged via investor relations, SEDAR+/EDGAR filings, the BMO CAPP Energy Symposium, and annual shareholder meetings. Active capital allocation includes a renewed 2026 NCIB (10% of float) following the retirement of approximately 23% of shares since 2023.

Name

Obsidian Energy

Legal name

Obsidian Energy Ltd.

Website

https://obsidianenergy.com

Company type

Public

Founded year

2017

Operating status

Operating

Headcount range

101–250 employees

Short description

Obsidian Energy is a Calgary-based intermediate upstream oil and gas producer operating heavy oil (Peace River) and light oil (Willesden Green, Viking) assets in Alberta, selling crude oil, natural gas, and NGLs to refiners and midstream processors; it is the largest Belly River producer in Western Canada following its June 2026 Highwood acquisition.

Ownership category

akta.pro rank

Headquarters

HQ city

Calgary

HQ country

Canada

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Personnel, Supply Chain, Infrastructure, Technology or R&D, Others

Revenue model

1. Oil and Gas Production Sales: Obsidian Energy generates revenue through the sale of produced crude oil (heavy and light), natural gas, and natural gas liquids. Revenue is commodity-price driven with significant exposure to WTI oil prices, MSW (Mixed Sweet Blend) and WCS (Western Canadian Select) differentials, and AECO natural gas prices. The company hedges commodity price risk through oil swaps, collars, and FX forwards.
2. Asset Dispositions: The company generates periodic proceeds from asset dispositions, such as the $325 million sale of Pembina assets to InPlay Oil Corp. in April 2025. These strategic dispositions are used to reduce debt and optimize the asset portfolio.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels5 records

Core offering

Obsidian Energy is an intermediate-sized upstream oil and gas producer focused on the exploration, development, and production of crude oil, natural gas, and natural gas liquids from operated assets in Alberta, Canada. The company operates three core asset areas: Peace River (heavy oil), Willesden Green/PCU#11 (light oil Cardium and Belly River), and Viking (light oil), producing approximately 28,900 boe/d under a 2026 guidance range of 27,900–29,900 boe/d with about 73% oil and NGL weighting. Production is sold to refineries and midstream processors via pipeline and trucking arrangements under commodity-price-driven contracts.

Product overview

Obsidian Energy is an intermediate-sized oil and gas producer with a well-balanced portfolio of high-quality assets focused in Alberta, Canada. The company operates across three primary asset areas: (1) Peace River heavy oil assets featuring Bluesky and Clearwater development fields with significant size and scale; (2) Willesden Green light oil assets including Cardium and Belly River formations with stacked light oil opportunities; and (3) Viking light oil assets for quick turnaround development. The company's principal business consists of the exploration, development, and production of petroleum resources, with recent strategic expansion through the Belly River acquisition making it the largest Belly River producer.

Differentiator

Problem solved

Functional benefit

Products and services

• Peace River Heavy Oil Assets Established Bluesky and Clearwater development fields in Peace River, Alberta, producing heavy oil with growth opportunities. Q1 2026 production of 13,270 boe/d, with extensive land base and waterflood enhanced oil recovery programs at Dawson, Nampa, and West Dawson fields. Targeted at refiners requiring heavy oil feedstock.
• Willesden Green and PCU#11 Light Oil Assets Stacked light oil opportunity featuring Cardium and Belly River formations in Willesden Green, Alberta. Q1 2026 production of 14,263 boe/d, with multi-zone development capability and stable returns. Open Creek Cardium wells achieving IP30 rates of 523 boe/d. Sold to refiners and midstream processors.
• Viking Light Oil Assets Quick turnaround development assets in Alberta, producing light oil. Q1 2026 production of 920 boe/d. Provides incremental development flexibility within the company's light oil portfolio. Sold to refiners and midstream processors.
• Belly River Light Oil Assets (Wilson Creek) High-return Belly River light oil assets in the Wilson Creek area of Willesden Green, producing approximately 2,500 boe/d (76% oil). Includes 35 net sections of land, 36 booked 2P development locations, and 13.6 MMboe of reserves. Sells to refiners and midstream processors.

Quantifiable outcome

• Reserve replacement ratio of 118% (PDP), 185% (1P), 235% (2P) in 2025
• +3 more outcomes

Segments1 record

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration2 records

Feature3 records

Partnerships

Three partnerships are on record, tiered core and minor.

• Highwood Asset Management Ltd.coreStrategic or Co-development Partner · 2 June 2026Obsidian Energy announced the acquisition of high-return Belly River light oil assets from Highwood Asset Management in the Wilson Creek area of Willesden Green. The transaction includes approximately 2,500 boe/d of production and 35 net sections of land for $96 million net purchase price (unadjusted $105 million). The acquisition makes Obsidian Energy the largest Belly River producer and is immediately accretive to funds flow from operations.
• Burnet, Duckworth & Palmer LLPminorImplementation/ SI/ Consulting Partner · 2 June 2026Burnet, Duckworth & Palmer LLP acted as legal counsel to Obsidian Energy on the Belly River acquisition.
• InPlay Oil Corp.coreStrategic or Co-development Partner · 1 April 2025Obsidian Energy closed the disposition of its operated Pembina (Cardium) assets to InPlay Oil Corp. for approximately $325 million. The transaction reduced net debt by over $300 million and decommissioning liability by over 50% ($390 million on undiscounted, uninflated basis). As part of the transaction, Obsidian Energy acquired InPlay's 34.6% interest in Willesden Green Cardium Unit #2.

Scale indicators10 records

Recent moves9 records

Expansion highlights4 records

Direct peers

• Whitecap Resources: Canadian intermediate oil and gas producer with a diversified portfolio of light and heavy oil assets in Alberta and Saskatchewan; similar size and operating model to Obsidian Energy, with comparable focus on capital efficiency, NCIB buybacks, and disciplined debt reduction.
• Crescent Point Energy: Intermediate Canadian E&P with significant light and heavy oil production in the Willesden Green and Shaunavon areas; directly comparable on asset mix and Western Canada Sedimentary Basin focus, with similar emphasis on waterflood EOR and return-of-capital programs.
• Baytex Energy: Canadian heavy oil-focused producer with operations in Alberta (Peace River, Lloydminster) and the Eagle Ford; highly comparable on heavy oil exposure, WCS differential sensitivity, and waterflood EOR development strategy.
• ARC Resources: Intermediate Canadian E&P with a balanced light oil, liquids-rich gas, and Montney-focused portfolio; similar market cap tier and capital return philosophy, though with greater natural gas weighting and no heavy oil exposure.
• Vermilion Energy: Canadian-based international E&P with operations in Canada, the U.S., Europe, and Australia; comparable on intermediate size and Canadian asset base (including heavy oil in Peace River), but with broader geographic diversification.
• InPlay Oil Corp. Intermediate Canadian E&P focused on light oil in the Willesden Green Cardium play; acquired Obsidian Energy's operated Pembina Cardium assets for $325M in April 2025, making it a directly comparable operator in the same Willesden Green core area.
• Tamarack Valley Energy: Intermediate Canadian E&P with Clearwater and Charlie Lake heavy/light oil assets in Alberta; highly comparable on heavy oil operational focus and waterflood development approach, with similar mid-cap market positioning.
• Cardinal Energy: Intermediate Canadian E&P focused on heavy oil in Alberta (Midale, Battrum, Wainwright) and Southeast Saskatchewan; directly comparable on heavy oil weighting, low decline production profile, and disciplined return-of-capital strategy.

Emerging players

• Headwater Exploration: Canadian E&P focused on light oil in Marten Hills (Clearwater) and McCully; comparable on Clearwater heavy/light oil development, but with a smaller, more concentrated asset base and growing market presence.

Broad incumbents

• Cenovus Energy: Large Canadian integrated oil and gas producer with significant heavy oil (Christina Lake, Foster Creek) and refining assets; broader and more diversified than Obsidian Energy, but directly comparable on heavy oil EOR technology and Western Canadian operational footprint.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/Obsidian_Energy

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Funding overview

Funding rounds5 records

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Obsidian Energy