Obsidian Energy Lowers 2026 Production Guidance
The oil and gas producer revised its full-year production outlook to 28,500–29,500 boe/d from a previous range of 29,000–31,000 boe/d.
Obsidian Energy Ltd. (OBE), an intermediate-sized oil and gas producer in Alberta, lowered its 2026 full-year production guidance to 28,500–29,500 boe/d. The company previously projected a range of 29,000–31,000 boe/d.
Management attributed the reduction, which represents an impact of approximately 500 boe/d, to a combination of summer wet weather that delayed portions of the development program and third-party facility downtime. The downtime occurred at recently acquired Belly River assets during July and August due to a third-party compressor issue. The company said those assets have since returned to an expected production capability of approximately 2,400 boe/d.
Based on the midpoint of the updated guidance, the company now expects average heavy oil production of 11,200 bbl/d and light oil production of 7,000 bbl/d. These figures are down from previous midpoint estimates of 11,700 bbl/d for heavy oil and 7,600 bbl/d for light oil. Natural gas and NGL estimates remained relatively stable, with natural gas projected at 50.7 mmcf/d compared to a previous 50.4 mmcf/d.
Development activity continued in the second half of 2026 with two active rigs in both Willesden Green and Peace River. In the Peace River region, the company began constructing an all-season road at North Walrus and added a waterflood injector to be drilled at the 6-20 pad in Walrus.
Obsidian Energy expects a December exit rate of approximately 31,000 boe/d. The company said it is on track to deliver production growth of more than 15% in 2027. This growth plan includes the execution of a six-well Belly River development program in early 2027, with the company noting optionality for further growth if oil prices remain at sustained higher levels.