Obsidian Energy reports first quarter loss as production declines
The exploration and production company reported a net loss of 18.7 million Canadian dollars for the three months ended March 31, 2026
Obsidian Energy Ltd. (OBE), an exploration and production company operating in the Western Canada Sedimentary Basin, reported a net loss of 18.7 million Canadian dollars for the first quarter of 2026. This follows a net income of 15.4 million Canadian dollars in the same period in 2025.
Production volumes decreased to an average of 28,733 boe/d during the quarter, down from 38,416 boe/d in the first quarter of 2025. The decline was driven largely by light oil production, which fell to 6,189 bbl/d from 12,727 bbl/d. Heavy oil production rose to 12,390 bbl/d from 10,887 bbl/d.
Financial performance was impacted by a 49.8 million Canadian dollars risk management loss, compared to a 12.5 million Canadian dollars loss in the prior year's first quarter. Production revenues fell to 148.7 million Canadian dollars from 211.0 million Canadian dollars. Cash flow from operating activities dropped to 40.0 million Canadian dollars from 96.7 million Canadian dollars.
Funds flow from operations was 61.0 million Canadian dollars, which the company said was ahead of budgeted expectations. This metric declined from 100.1 million Canadian dollars in the first quarter of 2025. The company's netback was 26.76 dollars per boe, compared to 33.10 dollars per boe in the previous year.
Capital expenditures for the quarter were 79.7 million Canadian dollars, a decrease from 128.4 million Canadian dollars in the first quarter of 2025. The company also repurchased and cancelled approximately 1.5 million shares under its normal course issuer bid.
Obsidian Energy is currently planning a material increase to its 2026 capital budget for the second half of the year. The company said this increase will focus on driving production growth across its light and heavy oil assets to add incremental high-netback oil-weighted volumes.