OBE - Obsidian Energy lifts guide - production up 3% capex up 105%

Obsidian Energy (OBE) raised production guidance Thursday, lifting 2022 targets to 32kboe/d (midpoint), versus prior guidance of ~31kboe/d (midpoint). The company also provided 2023 guidance, at 37-38kboe/d the forecast calls for 21% growth in 2023. Capex was lifted to $300m (midpoint) for 2022, up from prior guide of $146m, a ~105% increase. Service markets in Canada and the US are not interchangeable; however, this update provides some indication as to why shale producers (XLE) may be hesitant to lift spending and production growth in the current environment.

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Obsidian Energy lifts guide - production up 3%, capex up 105%