Obsidian Energy Announces TSX Approval for Renewal of Normal Course Issuer Bid
Obsidian Energy (TSX: OBE) has received TSX approval to renew its Normal Course Issuer Bid (NCIB), allowing the purchase of up to 7,144,408 common shares (10% of public float) over 12 months starting March 3, 2025. The program will expire on March 2, 2026.
Daily purchases on TSX are to 55,460 shares, with block purchase exceptions allowed weekly. Under the current NCIB expiring February 28, 2025, the company has already repurchased 4,164,820 shares at an average price of $9.32 per share.
The company believes its share price occasionally undervalues the business, making share repurchases an attractive opportunity to enhance per-share metrics. An automatic securities purchase plan has been established with a designated broker to facilitate purchases during blackout periods.
Obsidian Energy (TSX: OBE) ha ricevuto l'approvazione dalla TSX per rinnovare il suo Normal Course Issuer Bid (NCIB), consentendo l'acquisto di fino a 7.144.408 azioni ordinarie (10% del flottante pubblico) per un periodo di 12 mesi a partire dal 3 marzo 2025. Il programma scadrà il 2 marzo 2026.
Gli acquisti giornalieri sulla TSX sono limitati a 55.460 azioni, con eccezioni per acquisti in blocco consentite settimanalmente. Sotto l'attuale NCIB che scade il 28 febbraio 2025, l'azienda ha già riacquistato 4.164.820 azioni a un prezzo medio di 9,32 $ per azione.
L'azienda ritiene che il prezzo delle sue azioni sottovaluti occasionalmente il business, rendendo i riacquisti di azioni un'opportunità interessante per migliorare i parametri per azione. È stato stabilito un piano automatico di acquisto di titoli con un broker designato per facilitare gli acquisti durante i periodi di blackout.
Obsidian Energy (TSX: OBE) ha recibido la aprobación de la TSX para renovar su Normal Course Issuer Bid (NCIB), permitiendo la compra de hasta 7,144,408 acciones comunes (10% del flotante público) durante 12 meses a partir del 3 de marzo de 2025. El programa expirará el 2 de marzo de 2026.
Las compras diarias en la TSX están limitadas a 55,460 acciones, con excepciones para compras en bloque permitidas semanalmente. Bajo el actual NCIB que expira el 28 de febrero de 2025, la compañía ya ha recomprado 4,164,820 acciones a un precio promedio de $9.32 por acción.
La compañía cree que el precio de sus acciones a veces subestima el negocio, haciendo que las recompras de acciones sean una oportunidad atractiva para mejorar los métricas por acción. Se ha establecido un plan automático de compra de valores con un corredor designado para facilitar las compras durante los períodos de bloqueo.
Obsidian Energy (TSX: OBE)는 TSX의 승인을 받아 정상적인 발행자 입찰(NCIB)을 갱신하여 2025년 3월 3일부터 12개월 동안 7,144,408주 보통주 (공공 유통의 10%)를 구매할 수 있게 되었습니다. 이 프로그램은 2026년 3월 2일에 만료됩니다.
TSX에서의 일일 구매는 55,460주로 제한되며, 주간 블록 구매 예외가 허용됩니다. 현재 2025년 2월 28일에 만료되는 NCIB 하에서, 회사는 이미 평균 주당 $9.32에 4,164,820주를 재매입했습니다.
회사는 주가가 가끔 사업 가치를 과소평가한다고 생각하여, 주식 재매입이 주당 지표를 향상시키는 매력적인 기회가 된다고 믿고 있습니다. 블랙아웃 기간 동안 구매를 용이하게 하기 위해 지정된 브로커와 함께 자동 증권 구매 계획이 수립되었습니다.
Obsidian Energy (TSX: OBE) a reçu l'approbation de la TSX pour renouveler son Normal Course Issuer Bid (NCIB), permettant l'achat de jusqu'à 7.144.408 actions ordinaires (10 % du flottant public) sur une période de 12 mois à partir du 3 mars 2025. Le programme expirera le 2 mars 2026.
Les achats quotidiens sur la TSX sont limités à 55.460 actions, avec des exceptions de bloc d'achat autorisées chaque semaine. Dans le cadre de l'actuel NCIB qui expire le 28 février 2025, l'entreprise a déjà racheté 4.164.820 actions à un prix moyen de 9,32 $ par action.
L'entreprise estime que le prix de ses actions sous-estime parfois l'activité, rendant les rachats d'actions une opportunité attrayante pour améliorer les indicateurs par action. Un plan d'achat automatique de titres a été établi avec un courtier désigné pour faciliter les achats pendant les périodes de blocage.
Obsidian Energy (TSX: OBE) hat die Genehmigung der TSX erhalten, um ihr Normal Course Issuer Bid (NCIB) zu erneuern, was den Kauf von bis zu 7.144.408 Stammaktien (10% des öffentlichen Streubesitzes) über einen Zeitraum von 12 Monaten ab dem 3. März 2025 ermöglicht. Das Programm läuft am 2. März 2026 aus.
Tägliche Käufe an der TSX sind auf 55.460 Aktien begrenzt, wobei wöchentliche Ausnahmen für Blockkäufe erlaubt sind. Im Rahmen des aktuellen NCIB, das am 28. Februar 2025 ausläuft, hat das Unternehmen bereits 4.164.820 Aktien zu einem durchschnittlichen Preis von 9,32 $ pro Aktie zurückgekauft.
Das Unternehmen ist der Meinung, dass der Aktienkurs gelegentlich das Geschäft unterbewertet, was Rückkäufe von Aktien zu einer attraktiven Gelegenheit macht, um die Kennzahlen pro Aktie zu verbessern. Ein automatischer Wertpapierkaufplan wurde mit einem benannten Broker eingerichtet, um Käufe während der Sperrfristen zu erleichtern.
- Strong share buyback commitment with 10% of float authorized for repurchase
- Demonstrated execution with 4.16M shares already repurchased at $9.32/share
- Automatic purchase plan enables consistent buybacks during blackout periods
- Share repurchases may reduce available cash for operations or growth
- Company indicates shares may be undervalued, suggesting potential market concerns
Calgary, Alberta--(Newsfile Corp. - February 27, 2025) - OBSIDIAN ENERGY LTD. (TSX: OBE) (NYSE American: OBE) ("Obsidian Energy", the "Company", "we", "us" or "our") is pleased to announce that the Toronto Stock Exchange (the "TSX") has accepted Obsidian Energy's notice of intention to renew our normal course issuer bid (the "NCIB"). The NCIB allows Obsidian Energy to purchase up to 7,144,408 common shares (representing 10 percent of the Company's public float, as defined by the TSX, as of February 17, 2025) over a period of 12 months commencing on March 3, 2025. On February 17, 2025, Obsidian Energy had 73,684,802 common shares outstanding and 71,444,080 common shares in our public float. The NCIB will expire no later than March 2, 2026.
Under the NCIB, common shares may be repurchased through the facilities of the TSX, the NYSE American stock exchange and/or alternative trading systems in Canada and the United States, or as otherwise permitted under applicable securities laws. Purchases under the NCIB will be made through open market purchases at market price, as well as by other means as may be permitted under applicable securities laws. The NCIB will be effected in accordance with the TSX NCIB rules and/or Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended, which contain restrictions on the number of common shares that may be purchased on a single day, subject to certain exceptions for block purchases, based on the average daily trading volumes of Obsidian Energy's common shares on the applicable exchange.
The total number of common shares Obsidian Energy is permitted to purchase on the TSX is subject to a daily purchase limit of 55,460 common shares, representing 25 percent of the average daily trading volume of 221,843 common shares on the TSX calculated for the six-month period ended January 31, 2025. However, the Company may make one block purchase per calendar week on the TSX which exceeds such daily repurchase restrictions. Any common shares that are purchased under the NCIB will be cancelled upon their purchase by Obsidian Energy.
The actual number of common shares that may be purchased under the NCIB and the timing of any such purchases will be determined by Obsidian Energy. The Company believes that, at times, the prevailing share price does not reflect the underlying value of our common shares and the repurchase of our common shares for cancellation represents an attractive opportunity to enhance Obsidian Energy's per share metrics, and thereby increase the underlying value of the Company's common shares for our shareholders.
Obsidian Energy has established an automatic securities purchase plan with a designated broker whereby common shares may be repurchased at times when such purchases would otherwise be prohibited pursuant to regulatory restrictions or self-imposed blackout periods. Under the automatic securities purchase plan and before entering into a self-imposed blackout period, the Company may, but is not required to, request that the designated broker make purchases under the NCIB. Such purchases will be made at the discretion of the designated broker, within parameters established by Obsidian Energy prior to the blackout periods. Outside of the blackout periods, purchases are made at the discretion of the Company's management. The automatic securities purchase plan constitutes an "automatic plan" for purposes of applicable Canadian securities legislation and has been pre-cleared by the TSX.
The Company is permitted to repurchase up to 7,564,767 common shares under its current NCIB that commenced on February 29, 2024, and will expire on February 28, 2025. As at February 17, 2025, Obsidian Energy had repurchased an aggregate of 4,164,820 common shares under our expiring NCIB on the open market at a volume weighted average price per common share of approximately
ADDITIONAL READER ADVISORIES
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements or information (collectively "forward-looking statements") within the meaning of applicable Canadian and U.S. securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking statements or information. More particularly and without limitation, this news release contains forward-looking statements and information concerning: the timing, methods and quantity of any purchases by Obsidian Energy of its common shares under the NCIB; and the Company's belief that the repurchase of common shares under the NCIB will increase the underlying value of common shares held by shareholders.
The forward-looking statements and information are based on certain key expectations and assumptions made by Obsidian Energy, including: that the tariffs that have been publicly announced by the U.S. and Canadian governments (but which are not yet in effect) do not come into effect, but that if such tariffs do come into effect, the potential impact of such tariffs, and that other than the tariffs that have been announced, neither the U.S. nor Canada (i) increases the rate or scope of such tariffs, or imposes new tariffs, on the import of goods from one country to the other, including on oil and natural gas, and/or (ii) imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including on oil and natural gas; Obsidian Energy's views with respect to its financial condition and prospects, the stability of general economic and market conditions, currency exchange rates and interest rates; the availability of cash or other financing sources to fund repurchases of common shares under the NCIB and our ability to comply with applicable terms and conditions under the Company's debt agreements; the existence of alternative uses for Obsidian Energy's cash and other financial resources. Although Obsidian Energy believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Obsidian Energy can give no assurance that they will prove to be correct. By its nature, such forward-looking statements and information are subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to: the risk that (i) negotiations between the U.S. and Canadian governments are not successful and one or both of such governments implements announced tariffs, increases the rate or scope of announced tariffs, or imposes new tariffs on the import of goods from one country to the other, including on oil and natural gas, (ii) the U.S. and/or Canada imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including on oil and natural gas, and (iii) the tariffs imposed by the U.S. on other countries and responses thereto could have a material adverse effect on the Canadian, U.S. and global economies, and by extension the Canadian oil and natural gas industry and the Company; our inability to repurchase common shares under the NCIB in the amounts permitted or at all due to a lack of financial resources; the inability to comply with our debt agreements; legal restrictions on share repurchases; competing demands for our financial resources; the anticipated benefits of repurchasing our shares under the NCIB do not materialize; Obsidian Energy's future capital requirements; general economic and market conditions; demand for Obsidian Energy's products; and unforeseen legal or regulatory developments and other risk factors detailed from time to time in Obsidian Energy reports filed with the Canadian securities regulatory authorities and the United States Securities and Exchange Commission. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are cautioned that the assumptions used in the preparation of such forward-looking statements and information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on such forward-looking statements and information. Obsidian Energy gives no assurance that any of the events anticipated will transpire or occur, or, if any of them do, what benefits Obsidian Energy will derive from them. The forward-looking statements and information contained in this news release are expressly qualified by this cautionary statement. Except as required by law, the Company does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein. Readers should also carefully consider the matters discussed that could affect Obsidian Energy, or its operations or financial results in Obsidian Energy's Annual Information Form (see "Risk Factors" and "Forward-Looking Statements" therein) for the year ended December 31, 2024, which is available on the SEDAR+ website (www.sedarplus.ca), EDGAR website (www.sec.gov) or Obsidian Energy's website.
Obsidian Energy shares are listed on both the Toronto Stock Exchange in Canada and the NYSE American exchange in the United States under the symbol "OBE".
CONTACT
OBSIDIAN ENERGY
Suite 200, 207 - 9th Avenue SW, Calgary, Alberta T2P 1K3
Phone: 403-777-2500
Toll Free: 1-866-693-2707
Website: www.obsidianenergy.com
Investor Relations:
Toll Free: 1-888-770-2633
Email: investor.relations@obsidianenergy.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/242497
FAQ
How many shares can Obsidian Energy (OBE) repurchase under the new NCIB program?
What is the daily purchase limit for OBE shares under the new NCIB?
How many shares has OBE repurchased under its current NCIB program?
When does Obsidian Energy's new NCIB program start and end?
