Company Profile:

Obsidian Energy Ltd. explores for, develops, and produces oil and natural gas properties in western Canada. It primarily holds interest in the Cardium Resource Play that covers an area of approximately 400 net sections of developed and undeveloped land located in west central Alberta; Peace River Resource Play covering an area of 235 net sections of developed and undeveloped land located in northwestern Alberta; and Viking Resource Play that covers an area of approximately 170 net sections of developed and undeveloped land located in north-central Alberta. The company was formerly known as Penn West Petroleum Ltd. and changed its name to Obsidian Energy Ltd. in June 2017. Obsidian Energy Ltd. was founded in 1979 and is headquartered in Calgary, Canada.

Recent News:

Wall Street brokerages predict that Obsidian Energy Ltd (NYSE:OBE) (TSE:PWT) will post ($0.07) earnings per share for the current fiscal quarter. On average, analysts expect that Obsidian Energy will report full year earnings of ($0.10) per share for the current fiscal year, with EPS estimates ranging from ($0.11) to ($0.09).

On Jan. 15, 2018, the company is pleased to confirm full year 2017 production ahead of guidance and provide an operational update, including preliminary results from four well pad in Willesden Green.

For the third quarter ended September 30, 2017, funds flow from operations was $40 million , reflecting lower realized pricing due to a decrease in the CAD/USD exchange rate, which was partially offset by lower operating costs.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

OBE’s strengths can be seen in its strong solvency compared with its peers. Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator and RSI stands at 46.39 with positive bias. We rate Obsidian Energy Ltd (OBE) a STRONG BUY.