Analyst Jeremy Mccrea from BMO Capital maintained a Buy rating on Obsidian Energy and keeping the price target at C$10.00.
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Jeremy Mccrea has given his Buy rating due to a combination of factors that highlight Obsidian Energy’s strategic positioning and growth potential. The company has been focusing on high-performing formations such as Bluesky and Clearwater, which have shown promising results. Obsidian’s recent initiation of injector wells in these plays aligns with successful regional operators, suggesting a strong operational strategy.
Additionally, Obsidian’s completion of its NCIB and the initiation of waterflooding in the Dawson region are seen as positive steps towards enhancing production efficiency and shareholder confidence. The company’s improved balance sheet, coupled with favorable crude oil prices, positions it well for prioritizing substantial heavy oil production growth, further supporting the Buy rating.