TSX

Obsidian Energy Ltd.

OBE.TO•Energy•Oil & Gas Exploration & Production
Current Price
$16.93
Today's Change
+4.44%
Market Cap
$1.08B
Volume
202.24K
🛢️

Commodity Exposure

Crude Oil

Current Price
$102.30/barrel
+2.85% today
💡

Industry Context

Energy companies are highly sensitive to oil prices. Every $10/barrel change can impact operating margins by 15-25%.

Price updated: Oct 23, 2026, 03:00 PM

💡 Quick Take

Obsidian Energy Ltd. focuses on the exploration and production of oil and natural gas in Western Canada. The company boasts strong gross (59.8%) and EBITDA margins (54.5%), indicating efficient operations. However, its low return on equity (3.0%) and return on assets (2.1%) raise concerns about profitability relative to shareholder equity and total assets. Additionally, a current and quick ratio of 0.78 suggests potential liquidity issues. While margins are high, the overall financial health score of 62/100 reflects a need for improvement in efficiency and profitability.

Based on 27 data points⚠️Not financial advice

📊 Key Metrics

52 Week High$19.83
52 Week Low$7.65
Avg Volume331.11K
Beta0.32
Shares Outstanding66.73M

🔥 Valuation

Market Cap$1.08B
Enterprise Value$1.48B
P/E Ratio42.32
EV/EBITDA ⚠️2.00x
Dividend Yield0.00%

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🚩 Red Flags

🟠

Revenue Declining

Revenue fell 25.9% year-over-year from $767.3M to $568.2M. The decline has persisted for multiple quarters.

🟠

High Debt Load

Debt of $374.7M is 1873.5x the company's cash position of $200K.

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Rising Debt

Debt increased 64.8% from $227.3M to $374.7M while revenue growth remained modest.

🌟 Opportunities

🚀

Gross margin expanded by 63.3 percentage points, indicating improved pricing power or cost efficiency.

🚀

Operating margin expanded by 55.2pp, demonstrating strong operational leverage.

🚀

Both gross margin (+63.3pp) and operating margin (+55.2pp) are expanding simultaneously, indicating the company is scaling profitably.

💪

Strong gross margin of 59.1% reflects healthy unit economics.

🚀

Excellent operating cash flow margin of 29.2% indicates high-quality earnings.

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