Obsidian Energy Ltd. (TSX: OBE) has renewed its normal course issuer bid (NCIB), allowing the company to repurchase up to 6,458,536 common shares—about 10 % of its public float—over a 12‑month period that begins March 3 2026 and ends March 2 2027. The bid permits purchases through the TSX, NYSE American, or alternative trading systems, with a daily limit of 59,759 shares and the option for a single weekly block purchase that can exceed the daily cap, subject to average daily trading volume constraints.
The renewal follows a prior NCIB that ran from March 3 2025 to March 2 2026, during which Obsidian repurchased 7,144,408 shares at an average price of $7.16 per share. The new program’s daily limit represents 25 % of the average daily trading volume for the six months ending January 31 2026, and the company’s public float stands at 64,585,363 shares, with 67,306,951 common shares outstanding as of February 17 2026.
Obsidian’s 2025 financial results provide context for the buyback. Funds flow from operations reached $272.1 million ($3.92 per share basic), down from $432 million ($5.69 per share basic) in 2024. Net income for 2025 was $35.2 million ($0.51 per share basic), a sharp turnaround from the $202.6 million net loss ($-2.67 per share basic) reported in 2024. Management has repeatedly stated that the company believes its shares trade below intrinsic value, which underpins the decision to return capital to shareholders.
The buyback aligns with Obsidian’s broader capital‑allocation strategy, which balances development of its Alberta‑based assets—primarily in the Peace River, Willesden Green, and Viking areas—with debt reduction and shareholder returns. The company’s track record of fully utilizing previous NCIB programs demonstrates disciplined execution and confidence in future cash flows.
By renewing the NCIB, Obsidian signals confidence in its valuation and a commitment to enhancing per‑share value. The program’s size and duration reflect the company’s willingness to deploy significant capital toward shareholder returns while maintaining flexibility to adjust purchases in response to market conditions.
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