Obsidian Energy is a mid-size upstream oil and gas producer based in Western Canada, operating two core assets in Alberta. The primary growth asset is Peace River, where Obsidian produces heavy oil from the Bluesky and Clearwater formations across roughly 700 square miles of land. Obsidian has grown Clearwater production from near zero to over 4,000 boe/d and is testing novel well designs and a waterflood enhanced oil recovery pilot to improve long-term recovery rates. The second core asset is Willesden Green, which produces Cardium light oil and provides stable free cash flow that funds Peace River growth drilling. Obsidian also holds a non-operated 44% working interest in Pembina Cardium Unit #11 and a Viking light oil position. In April 2025, Obsidian sold its operated Pembina assets to InPlay Oil for ~$320M, cutting ARO obligations by over 50% and refocusing the portfolio on its two core operated areas. Post-disposition, Obsidian produces roughly 27,000–29,000 boe/d, with ~72% oil and liquids weighting. Obsidian's business model is straightforward: drill wells, produce oil, and sell at market prices, with results driven by production volumes, WTI pricing, and heavy oil differentials. Obsidian's strategy is to deploy free cash flow from light oil assets into Peace River development drilling, while returning excess capital to shareholders via share buybacks — Obsidian has repurchased roughly 16% of shares outstanding since initiating its buyback program.