Obsidian Energy Ltd (NYSE:OBE) posted its financial and operational report for the year closed December 31, 2017. All figures mentioned herein are in Canadian dollars unless otherwise mentioned. David French, the CEO and President, expressed that they are delighted to post a remarkable fourth quarter performance. Last year marked as a breakthrough year for the firm. Notwithstanding a tough external environment, they consistently delivered on their operational goals, beat their production guidance, and supported the shallow dropping cash flows of the operations.
The CEO of Obsidian reported that they grew their A&D adjusted production base last year by around 10%, launching a disciplined growth story, while maintaining their emphasis on balance sheet strength and spending less capital. They continue to record strong results across their field operations, particularly within their Cardium acreage.
Off the back of the reported performance, they have found means to put additional funds to work in the Willesden Green fairway. The success of their 2017 program establishes up well for this year and beyond. They see several reasons to be thrilled for the upcoming period of Obsidian. FY2017 production stood at 31,723 boe a day, above the high end of company’s projection range of 30,500 to 31,500 boe a day. Ongoing waterflood and their shallow base drop, combined with robust execution of their second half development plan led the outperformance.
Production came at 31,447 boe a day in Q4 2017, 10% higher than the earlier year, adjusted for A&D. Comparative to the third quarter, the company grew liquids production and total production by 4%. This records another quarter of steady production delivery and advances their operational momentum into Q1 2018. FY2017 capital came at $157 million, counting decommissioning expenditures, below Obsidian projection of $160 million. Capital in the fourth quarter stood at $44 million.