OBE - Obsidian Energy Needs More Asset Sales And Higher Prices

The analysis of Obsidian Energy's (OBE) Q1 results confirms the company relies on divestitures to reduce its leverage. Despite improved Canadian oil prices during Q1, the company generated barely positive total netback.

In these circumstances, consistent with its previously announced strategy, Obsidian Energy announced the proposed sale of its Peace River assets.

With this transaction, the net debt will decrease and the company will reduce its exposure to volatile WCS prices. But the leverage will still be important.

This article discusses the context of this transaction and its impact on the company.

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