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Stocks•26 June 2026•

1 min read

Obsidian Energy: Cheap oil producer with strong cash flows and growth catalysts

Key Facts

1Obsidian Energy trades at roughly half its 2P NAV.

2The company has $1.6 billion in tax pools.

3Production is expected to grow 15% in 2027.

A recent analysis highlights Obsidian Energy as one of the cheapest oil producers by valuation, with its stock trading at roughly half its 2P NAV. According to the report, the company holds $1.6 billion in tax pools, boosting cash flows, and production is expected to grow 15% in 2027.

OBE shares closed at $8.08 on June 25, supported by an aggressive buyback program and tax-related catalysts. This comes as API crude oil inventories showed a draw of 765,000 barrels for the week ending June 23, a supportive factor for oil prices and producers like Obsidian.

Technically, the stock traded between $7.94 and $8.23 in its latest session. The $8 level appears to be strong support, while a break above $8.23 could pave the way for further upside. With Q2 earnings season approaching, tax pools and production growth catalysts will likely be in focus for investors.