RBC Gives Outperform Rating to Obsidian Energy Due to Clearwater Potential

Trending News ☀️

Obsidian Energy ($NYSEAM:OBE), formerly known as Penn West Petroleum Ltd., is an oil and gas exploration and production company in Canada. Recently, the Royal Bank of Canada (RBC) gave Obsidian Energy an Outperform rating due to its Clearwater potential. The Clearwater project, located in Alberta, contains light oil in the Cardium formation. RBC believes that the development of this asset has the potential to increase Obsidian Energy’s production and cash flow significantly. The report released by the bank states that the company has a large amount of excess infrastructure that could be leveraged to reduce costs and increase production rates. RBC is confident that Obsidian Energy’s Clearwater potential will help it to become a major player in the oil and gas industry.

The bank also stated that the company has strong prospects for growth and increased value, as well as its ability to compete with more established players in the industry. The report released by RBC also notes that Obsidian Energy’s management team has a proven track record of success in both cost-effective and proactive asset development. The team is also well-positioned to take advantage of new opportunities and capitalize on market conditions. With its strong fundamentals and impressive Clearwater project, Obsidian Energy is well-positioned to benefit from its future growth.

Price History

This positive news caused Obsidian Energy‘s stock prices to jump to $7.0, up 4.0% from their last closing price of $6.8. RBC believes that the Clearwater project could offer lucrative long-term growth opportunities for Obsidian Energy, which could very well push the stock prices even higher. The success of Clearwater could enable Obsidian Energy to gain a solid foothold in the oil and gas industry, as well as provide investors with high returns. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Obsidian Energy. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Obsidian Energy. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Obsidian Energy. More…

Key Ratios Snapshot

Some of the financial key ratios for Obsidian Energy are shown below. More…

Analysis

At GoodWhale, we’ve performed an analysis of OBSIDIAN ENERGY‘s fundamentals. Based on our Risk Rating, we’ve determined that OBSIDIAN ENERGY is a medium risk investment in terms of financial and business aspects. We’ve also detected three risk warnings in their balance sheet, cashflow statement, and financial journal. If you’re interested in learning more about these risk warnings, simply register as a user on GoodWhale to access more detailed information. More…

Summary

Obsidian Energy (formerly known as Penn West Petroleum) is an oil and gas exploration and production company based in Calgary, Alberta. This upgrade was largely based on the potential of the Clearwater formation in Alberta, a significant asset for the company. While a short-term increase, this upgrade is indicative of the company’s potential for long-term growth as it continues to develop its assets in the Clearwater and other areas of Alberta. Investors should be aware of any new developments that could affect the company’s progress, such as further investment, operational changes or changes in commodity prices.