Gross margins have experienced severe compression, falling from historical peaks above 65% to just 25.6% in 2026Q1, underscoring the company's vulnerability to volatile realized pricing.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 |
|---|
| Sales/Revenue | 497.77M | 614M | 837.7M | 653.3M | 920M | 448.9M | 272.8M | 416M | 444M | 437M | 608M | 1.19B | 2.43B | 2.83B | 3.23B | 6.62B | 3.06B | 2.65B | 4.95B | 2.46B | 2.1B | 1.92B | 1.23B | 1.1B | 798.08M | 854.18M |
| Revenue Growth % | -38.77% | -26.7% | 28.23% | -28.99% | 104.95% | 64.55% | -34.42% | -6.31% | 1.6% | -28.13% | -48.78% | -51.21% | -13.94% | -12.61% | -51.12% | 116.49% | 15.4% | -46.45% | 101.18% | 17.04% | 9.48% | 56.63% | 11.11% | 38.17% | -6.57% | - |
| Cost of Goods Sold | 268.52M | 279.8M | 775.4M | 243.9M | 224.3M | 100K | 1.04B | 1.08B | 605M | 529M | 959M | 3.09B | 2.49B | 3.15B | 3.14B | 1.73B | 1.54B | 1.51B | 1.8B | 992.6M | 824.1M | 350.1M | 0 | 0 | 0 | 0 |
| COGS % of Revenue | - | 45.57% | 92.56% | 37.33% | 24.38% | 0.02% | 379.99% | 260.34% | 136.26% | 121.05% | 157.73% | 260.49% | 102.22% | 111.5% | 97.03% | 26.08% | 50.41% | 56.93% | 36.33% | 40.37% | 39.23% | 18.24% | - | - | - | - |
| Gross Profit | 229.25M | 334.2M | 62.3M | 409.4M | 695.7M | 288.1M | -750.1M | -667M | -161M | -92M | -351M | -1.91B | -54M | -325M | 96M | 4.89B | 1.52B | 1.14B | 3.15B | 1.47B | 1.28B | 1.57B | 1.23B | 1.1B | 798.08M | 854.18M |
| Gross Margin % | 46.06% | 54.43% | 7.44% | 62.67% | 75.62% | 64.18% | -274.96% | -160.34% | -36.26% | -21.05% | -57.73% | -160.49% | -2.22% | -11.5% | 2.97% | 73.92% | 49.59% | 43.07% | 63.67% | 59.63% | 60.77% | 81.76% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | - | 436.44% | -84.78% | -41.15% | 141.48% | 138.41% | -12.46% | -314.29% | -75% | 73.79% | 81.57% | -3427.78% | 83.38% | -438.54% | -98.04% | 222.69% | 32.87% | -63.77% | 114.81% | 14.83% | -18.62% | 28.05% | 11.11% | 38.17% | -6.57% | - |
| Operating Expenses | 196.6M | 281.4M | 311.8M | 35.2M | 46.5M | 46.3M | 17.3M | 41M | 60M | 60M | 372M | 440M | 240M | 308M | 262M | 1.28B | 1.52B | 1.5B | 1.75B | 962.5M | 716.7M | 552.6M | 798.78M | 545.22M | 484.43M | 381.76M |
| OpEx % of Revenue | - | 45.83% | 37.22% | 5.39% | 5.05% | 10.31% | 6.34% | 9.86% | 13.51% | 13.73% | 61.18% | 37.07% | 9.86% | 10.89% | 8.1% | 19.42% | 49.69% | 56.7% | 35.42% | 39.15% | 34.11% | 28.8% | 65.2% | 49.44% | 60.7% | 44.69% |
| Selling, General & Admin | 27.9M | 32.3M | 28.7M | 35.2M | 47.1M | 56.1M | 45.1M | 52M | 66M | 68M | 103M | 144M | 188M | 221M | 191M | 226M | 181M | 168M | 157.84M | 65.8M | 47.3M | 100.3M | 16.09M | 12.5M | 10.32M | 7.42M |
| SG&A % of Revenue | - | 5.26% | 3.43% | 5.39% | 5.12% | 12.5% | 16.53% | 12.5% | 14.86% | 15.56% | 16.94% | 12.13% | 7.73% | 7.82% | 5.9% | 3.41% | 5.92% | 6.34% | 3.19% | 2.68% | 2.25% | 5.23% | 1.31% | 1.13% | 1.29% | 0.87% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 249.1M | 283.1M | 0 | -600K | -9.8M | -27.8M | -11M | -16M | -15M | -82M | 296M | 52M | 87M | 71M | 1.16B | 1.25B | 1.33B | 1.59B | 896.7M | 669.4M | 452.3M | 782.69M | 532.72M | 474.11M | 374.33M |
| Operating Income | 32.65M | 52.8M | -249.5M | 374.2M | 502.6M | 253.4M | 117.8M | -731M | -221M | -152M | -723M | -2.35B | -294M | 714M | -166M | 542M | 81M | -361M | 1.4B | 503.7M | 560.1M | 1.02B | 426.43M | 557.47M | 313.64M | 472.42M |
| Operating Margin % | 6.56% | 8.6% | -29.78% | 57.28% | 54.63% | 56.45% | 43.18% | -175.72% | -49.77% | -34.78% | -118.91% | -197.56% | -12.08% | 25.26% | -5.13% | 8.19% | 2.65% | -13.63% | 28.25% | 20.49% | 26.66% | 52.96% | 34.8% | 50.56% | 39.3% | 55.31% |
| Operating Income Growth % | - | 121.16% | -166.68% | -25.55% | 98.34% | 115.11% | 116.11% | -230.77% | -45.39% | 78.98% | 69.17% | -697.62% | -141.18% | 530.12% | -130.63% | 569.14% | 122.44% | -125.83% | 177.45% | -10.07% | -44.89% | 138.33% | -23.51% | 77.74% | -33.61% | - |
| EBITDA | 214.99M | 256M | 412.9M | 585.2M | 732.07M | 338.07M | 249.1M | -476.8M | 77M | 148M | -331M | 22M | 1.09B | 2.51B | 1.36B | 1.7B | 1.42B | 1.2B | 2.99B | 1.4B | 1.21B | 1.45B | 839.5M | 879.5M | 572.34M | 673.74M |
| EBITDA Margin % | 43.19% | 41.69% | 49.29% | 89.58% | 79.57% | 75.31% | 91.31% | -114.62% | 17.34% | 33.87% | -54.44% | 1.85% | 44.8% | 88.65% | 42.01% | 25.69% | 46.42% | 45.11% | 60.48% | 56.95% | 57.82% | 75.76% | 68.52% | 79.76% | 71.71% | 78.88% |
| EBITDA Growth % | -62.45% | -38% | -29.44% | -20.06% | 116.55% | 35.72% | 152.24% | -719.22% | -47.97% | 144.71% | -1604.55% | -97.98% | -56.5% | 84.4% | -20.06% | 19.8% | 18.74% | -60.06% | 113.63% | 15.28% | -16.45% | 73.19% | -4.55% | 53.67% | -15.05% | - |
| D&A (Non-Cash Add-back) | 182.34M | 203.2M | 662.4M | 211M | 229.47M | 84.67M | 131.3M | 254.2M | 298M | 300M | 392M | 2.37B | 1.38B | 1.79B | 1.52B | 1.16B | 1.34B | 1.56B | 1.59B | 896.7M | 654.7M | 437.6M | 413.07M | 322.03M | 258.7M | 201.32M |
| EBIT | 63.15M | 69.9M | -231.8M | 172.6M | 602.1M | 453.2M | 37.2M | -752.5M | -284M | -74M | -834M | -3.1B | -1.69B | -858M | 382M | 601M | 1.18B | -361M | 1.56B | 503.7M | 559.18M | 1.02B | 426.3M | 575.84M | 313.64M | 472.42M |
| Net Interest Income | -19.01M | -22.9M | -33.3M | -31.3M | -28.03M | -24.82M | -19M | -24.75M | -21M | -23M | -114M | -162M | -157M | -184M | -199M | -190M | -174M | -161M | -204M | 0 | -49.3M | -23.2M | 0 | -11.87M | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 500K | 5.09M | 4.74M | 10.2M | 6.55M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 19.01M | 22.9M | 33.3M | 31.8M | 33.12M | 29.57M | 29.2M | 31.31M | 21M | 23M | 114M | 162M | 158M | 184M | 199M | 190M | 174M | 161M | 204M | 0 | 49.3M | 23.2M | 0 | 11.87M | 0 | 0 |
| Other Income/Expense | -23.74M | -5.8M | -15.6M | -230.6M | 61.1M | 160.6M | -889.5M | -68.6M | -84M | 55M | -225M | -920M | -1.56B | -2.22B | 385M | -86M | 951M | -161M | -41.52M | -252.8M | 14.22M | -371.4M | -17M | -11.87M | -20.31M | -26.71M |
| Pretax Income | 8.91M | 47M | -265.1M | 143.6M | 563.7M | 414M | -771.7M | -788M | -305M | -97M | -948M | -3.27B | -1.85B | -1.08B | 237M | 411M | -93M | -522M | 1.36B | 250.9M | 574.1M | 644.9M | 409.41M | 545.6M | 293.33M | 445.71M |
| Pretax Margin % | 1.79% | 7.65% | -31.65% | 21.98% | 61.27% | 92.23% | -282.88% | -189.42% | -68.69% | -22.2% | -155.92% | -275.06% | -76.08% | -38.24% | 7.33% | 6.21% | -3.04% | -19.71% | 27.42% | 10.2% | 27.33% | 33.61% | 33.42% | 49.48% | 36.75% | 52.18% |
| Income Tax | 2.56M | 11.8M | -62.5M | 35.6M | -246.4M | 0 | 0 | 17M | 0 | -13M | -252M | -619M | -118M | -243M | 63M | -227M | -319M | -378M | 134.77M | 75.4M | -106.2M | 53M | 137.55M | 110.65M | 134.89M | 200.61M |
| Effective Tax Rate % | 28.7% | 25.11% | 23.58% | 24.79% | -43.71% | 0% | 0% | -2.16% | 0% | 13.4% | 26.58% | 18.96% | 6.37% | 22.48% | 26.58% | -55.23% | 343.01% | 72.41% | 9.94% | 30.05% | -18.5% | 8.22% | 33.6% | 20.28% | 45.99% | 45.01% |
| Net Income | 6.36M | 35.2M | -202.6M | 108M | 810.1M | 414M | -771.7M | -788M | -305M | -84M | -696M | -2.65B | -1.73B | -838M | 174M | 638M | 226M | -144M | 1.22B | 175.5M | 665.6M | 577.2M | 271.87M | 434.95M | 158.44M | 245.1M |
| Net Margin % | 1.28% | 5.73% | -24.19% | 16.53% | 88.05% | 92.23% | -282.88% | -189.42% | -68.69% | -19.22% | -114.47% | -222.91% | -71.23% | -29.64% | 5.38% | 9.64% | 7.39% | -5.44% | 24.69% | 7.14% | 31.68% | 30.08% | 22.19% | 39.44% | 19.85% | 28.69% |
| Net Income Growth % | 103.19% | 117.37% | -287.59% | -86.67% | 95.68% | 153.65% | 2.07% | -158.36% | -263.1% | 87.93% | 73.7% | -52.68% | -106.8% | -581.61% | -72.73% | 182.3% | 256.94% | -111.79% | 595.99% | -73.63% | 15.32% | 112.31% | -37.5% | 174.52% | -35.36% | - |
| Net Income (Continuing) | 6.36M | 35.2M | -202.6M | 108M | 810.1M | 414M | -771.7M | -788.3M | -305M | -84M | -696M | -2.65B | -1.73B | -809M | 125M | 638M | 1.11B | -144M | 1.22B | 175.5M | 665.19M | 577.2M | 271.8M | 446.58M | 158.44M | 245.1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.09 | 0.49 | -2.67 | 1.28 | 9.60 | 5.34 | -10.53 | -11.04 | -4.22 | -1.17 | -9.70 | -36.90 | -24.57 | -12.07 | 2.59 | 9.52 | 17.36 | -2.44 | 22.54 | 5.11 | 22.89 | 24.36 | 11.55 | 57.33 | 20.30 | 31.78 |
| EPS Growth % | 99.6% | 118.35% | -308.59% | -86.67% | 79.78% | 150.71% | 4.62% | -161.61% | -260.68% | 87.94% | 73.71% | -50.18% | -103.56% | -566.02% | -72.79% | -45.16% | 811.48% | -110.83% | 341.1% | -77.68% | -6.03% | 110.91% | -79.85% | 182.41% | -36.12% | - |
| EPS (Basic) | - | 0.51 | -2.67 | 1.33 | 9.88 | 5.52 | -10.53 | -11.04 | -4.22 | -1.19 | -9.70 | -36.90 | -24.57 | -12.11 | 2.59 | 9.59 | 17.57 | -2.44 | 22.75 | 5.11 | 23.24 | 24.85 | 11.76 | 58.10 | 20.86 | 32.83 |
| Diluted Shares Outstanding | 67.3M | 71.8M | 76M | 84.1M | 84.4M | 77.6M | 73.3M | 72.9M | 72.33M | 71.99M | 71.76M | 71.71M | 70.53M | 69.4M | 67.97M | 66.77M | 64.51M | 58.99M | 54.7M | 34.5M | 29.07M | 23.69M | 7.7M | 7.79M | 7.8M | 7.71M |
| Basic Shares Outstanding | 67.3M | 69.4M | 76M | 84.38M | 82M | 75.1M | 73.3M | 72.9M | 72.33M | 70.59M | 71.76M | 71.71M | 70.52M | 69.2M | 67.94M | 66.74M | 63.11M | 58.99M | 53.66M | 34.2M | 28.69M | 23.23M | 7.7M | 7.69M | 7.6M | 7.47M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 227.01% | 51.41% | 261.5% | - | 107.46% | 481.42% | 117.44% | 49.97% | 39.58% | - | - | - |
Commodity Price Realization Volatility
As indicated by the most recent quarterly data, Obsidian Energy experienced a significant 53.9% year-over-year revenue decline, reflecting the company's heightened sensitivity to WCS-WTI price differentials and potential strategic production curtailments within its core Western Canadian Sedimentary Basin assets during periods of unfavorable commodity pricing.
The sharp top-line deterioration suggests that the company's revenue base remains highly susceptible to regional pricing benchmarks rather than purely production-driven growth. Investors should monitor whether this decline represents a deliberate shift toward higher-margin barrels or a structural loss of market share in the Peace River region.
According to the reported income statement, gross margins have compressed significantly from historical peaks of over 65% to 25.6% in 2026Q1, highlighting the inherent cyclicality of the company's heavy oil production and the impact of fluctuating realized prices on field-level profitability.
The wide variance between gross and operating margins suggests that fixed costs and legacy obligations exert substantial pressure on the bottom line during down-cycles. This volatility implies that the company lacks the pricing power to insulate its margins from broader energy market downturns.
Based on financial filings, the company's operating income has failed to scale consistently with gross profit, as evidenced by the 2024Q4 period where massive cost adjustments led to a negative operating margin of 171.6%, indicating significant sensitivity to non-production expenses and legacy liabilities.
The inability to maintain stable operating margins during revenue fluctuations suggests that the company's cost structure is not sufficiently variable to protect profitability. This warrants further investigation into whether corporate overhead and legacy asset retirement obligations are masking the true operational efficiency of the underlying oil and gas assets.
As reported in recent statements, the company's net income has been frequently impacted by non-operating items and significant swings in profitability, with net margins fluctuating between 22.2% and -130.8% over the last ten quarters, raising questions regarding the consistency of earnings quality.
Short-sellers may focus on the discrepancy between the company's low debt-to-equity ratio and its inconsistent net income, suggesting that legacy environmental liabilities could be a hidden drag on long-term value. The reliance on non-operating adjustments to reconcile net income implies that investors should prioritize cash flow metrics over headline earnings.
Quick answers to the most common questions about buying OBE stock.
For fiscal year 2025, Obsidian Energy Ltd. (OBE) reported total revenue of $614.0M. This represents a 28.1% decline compared to $854.2M in 2001.
Obsidian Energy Ltd. (OBE) is profitable, generating $35.2M in net income for the fiscal year ending 2025 with a net profit margin of 5.7%.
Obsidian Energy Ltd. (OBE) reported an operating income of $52.8M, resulting in an operating profit margin of 8.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Obsidian Energy Ltd. (OBE) generated $334.2M in gross profit for the year, representing a gross profit margin of 54.4%. This demonstrates the company's core pricing power and production efficiency.