Obsidian Energy Targets 15%+ Growth After Weather-Related Delays
Obsidian Energy (OBE) has announced its operational and guidance update for 2026, revealing that it is on track to deliver 15%+ year-over-year production growth in 2027. The company's second-half development program is advancing with two rigs active in each of Peace River and Willesden Green.
Obsidian Energy's President and CEO, Stephen Loukas, commented that the company's progress is building momentum toward the execution of its 2027 growth plans. He attributed the delay in production to weather-related issues during the summer, which impacted the development program and third-party facility downtime at the recently acquired Belly River assets.
The Belly River assets are now back to their expected production capability of ~2,400 boe/d. Combined with delays to portions of the development program, these factors have affected Obsidian Energy's full-year production outlook by ~500 boe/d. As a result, the company is updating its 2026 full-year production guidance to 28,500-29,500 boe/d.
Obsidian Energy continues to target production growth of more than 15% in 2027, including executing its previously announced six-well Belly River development program on the acquired lands in early 2027 with optionality for additional growth at sustained higher oil prices. The company anticipates releasing its 2027 guidance in mid-January.