Obsidian Energy Reports Q4 Loss, Production Increases

Obsidian Energy reports a troubling Q4 with a net loss of $284.8 million and EPS at -$3.83. Despite producing more oil, the decline in sales price could impact future stock performance.

Date: 26-02-2025

AI Rating: 3

**Earnings Per Share (EPS)**: Obsidian Energy reported a loss of $3.83 per share compared to a profit of $0.42 per share a year ago, showing a significant decline in profitability. **Net Income**: The company reported a net loss of $284.8 million, indicating a drastic shift from the prior year's net income of $34.3 million. Such losses could lead to investor concern about the company's financial health. **Revenue Growth**: While total production increased to an average of 40,119 barrels of oil equivalent per day from 31,974 barrels, the increase in production does not offset the lower sales prices. **Profit Margins**: The average sales price per barrel fell to $57.94 from $59.08, negatively affecting overall margins and profitability despite the increase in production. This price decline suggests increasing pressure on profit margins, which could be worrisome for investors. Overall, the financial results and the significant loss reported may lead to a negative perception of Obsidian Energy in the market, affecting its stock performance going forward.

Stocks: OBE