6-K - OBE - Equibles

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________ Form 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the month of May 2025 Commission File Number 1-32895 ___________________ Obsidian Energy Ltd. (Translation of registrant's name into English) Suite 200, 207 – 9th Avenue SW Calgary, Alberta T2P 1K3 Canada (Address of principal executive offices) ___________________ Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F  Form 40-F ☑ Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1)  Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7)  .

DOCUMENTS INCLUDED AS PART OF THIS FORM 6-K

See the Exhibit Index hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on May 7, 2025.

OBSIDIAN ENERGY LTD.
By:	/s/ Stephen Loukas
Name:	Stephen Loukas
Title:	President and Chief Executive Officer

EXHIBIT INDEX

Exhibit	Description
99.1	News Release, dated May 7, 2025
99.2	Management’s Discussion and Analysis for the three months ended March 31, 2025
99.3<br><br>99.4<br><br>99.5	Financial Statements for the three months ended March 31, 2025<br><br>Quarterly Certification of the Chief Executive Officer under Canadian law<br><br>Quarterly Certification of the Chief Financial Officer under Canadian law

EX-99.1

Exhibit 99.1

Obsidian Energy Announces First Quarter 2025 Results

Closed $320 million divestiture of Pembina assets on April 7, 2025, with cash proceeds used to reduce debt level
Completed first quarter program with 26 (24.4 net) operated wells rig released and 19 (17.9 net) operated wells brought on production
Responded to the market environment by reducing our first half capital program to $165 - $170 million from $185 - $195 million
Commenced drilling waterflood injector pilot at the Dawson 4-24 Pad

CALGARY, May 7, 2025 - OBSIDIAN ENERGY LTD. (TSX / NYSE American – OBE) (“Obsidian Energy”, the “Company”, “we”, “us” or “our”) is pleased to report our operating and financial results for the first quarter of 2025.


		2024
FINANCIAL1 (millions, except per share amounts)
Cash flow from operating activities	96.7		58.7
Basic per share (/share)2	1.32		0.76
Diluted per share (/share)2	1.27		0.73
Funds flow from operations3	100.1		84.4
Basic per share (/share)4	1.36		1.09
Diluted per share (/share)4	1.31		1.05
Net income	15.4		11.9
Basic per share (/share)	0.21		0.15
Diluted per share (/share)	0.20		0.15
Capital expenditures	128.4		114.3
Decommissioning expenditures	6.6		10.1
Long-term debt	350.4		277.6
Net debt3	459.9		386.3
OPERATIONS
Daily Production
Light oil (bbl/d)	12,727		13,079
Heavy oil (bbl/d)	10,887		6,748
NGL (bbl/d)	3,072		2,783
Natural gas (mmcf/d)	70		70
Total production5 (boe/d)	38,416		34,238
Average sales price2,6
Light oil (/bbl)	99.46		94.82
Heavy oil (/bbl)	70.14		60.39
NGLs (/bbl)	53.49		50.43
Natural gas (/mcf)	2.18		2.38

All values are in US Dollars.

Netback (/boe)
Sales price	57.07
Risk management gain	1.24
Net sales price	58.31
Royalties	(7.05)
Net operating costs4	(13.91)
Transportation	(3.95)
Netback4 (/boe)	33.40

All values are in US Dollars.

We adhere to generally accepted accounting principles (“GAAP”); however, we also employ certain non-GAAP measures to analyze financial performance, financial position, and cash flow, including funds flow from operations (“FFO”), net debt, netback and net operating costs. Additionally, other financial measures are also used to analyze performance. These non-GAAP and other financial measures do not have any standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and therefore may not be comparable to similar measures provided by other issuers. Readers should not consider non-GAAP and other financial measures to be more meaningful than GAAP measures, which are determined in accordance with IFRS, such as net income and cash flow from operating activities, as indicators of our performance.
Supplementary financial measure. See ‘Non-GAAP and Other Financial Measures’.
Non-GAAP financial measure. See ’Non-GAAP and Other Financial Measures’.
Non-GAAP ratio. See ’Non-GAAP and Other Financial Measures’.
Please refer to the ’Oil and Gas Information Advisory’ section below for information regarding the term "boe".
Before realized risk management gains/(losses).

Detailed information can be found in Obsidian Energy's unaudited interim consolidated financial statements and management's discussion and analysis ("MD&A") as at and for the three month period ended March 31, 2025, on our website at www.obsidianenergy.com, which will also be filed on SEDAR+ and EDGAR in due course.

FIRST QUARTER 2025 overview

Obsidian Energy continued with the strategy of holding our light oil production profile flat during the first quarter of 2025, while recycling capital into funding the development and exploration/appraisal of our Peace River play. Accordingly, average production of 38,416 boe/d for the first quarter of 2025 was in line with our expectations, and 12 percent above first quarter 2024 levels. Funds flow from operations (“FFO”) increased by 19 percent (25 percent on a per share basis) to $100.1 million ($1.36 per share basic) for the quarter versus the same period in 2024, benefitting from increased production and higher realized sales prices.

Subsequent to the end of the first quarter, we closed the previously announced divestiture of our operated Pembina assets (the “Pembina Assets“) to InPlay Oil Corp. (“InPlay“) (collectively, the “Transaction“), while retaining our non-operated holdings in Pembina Cardium Unit #11. Proceeds on closing included cash of $211 million (after interim closing adjustments), 9.1 million shares in InPlay (post InPlay’s recent 6:1 share consolidation), and $15 million associated with value received for InPlay’s 34.6 percent working interest in the Willesden Green Cardium Unit #2 oil field. Cash proceeds were used to repay debt, resulting in approximately $30 million drawn on our $235 million syndicated credit facility post close.

“Our first quarter capital plan was heavily skewed towards an exploration/appraisal-based drilling program to both take advantage of areas within Peace River where we currently don’t have all-season access, as well as to further delineate our land base,” commented Stephen Loukas, Obsidian Energy’s President and CEO. “Overall, we experienced constructive results with strong reservoir characteristics in five out of the seven pads tested early in the first quarter. Through the balance of this year, we will refine our technical work and well design to further improve production deliverability and returns. Most recently, we have experienced strong initial production results from our first half development-focused drilling in established areas that target both the Clearwater and Bluesky formations.”

Stephen Loukas continued, “Over the last few months, uncertainty created by threats of broad-based tariffs from the U.S. has caused significant volatility in commodity prices, capital markets and equity valuations. The volatility in oil prices has been further exacerbated by the OPEC+ decision to increase production quotas. Given this environment, we are responding to the uncertainty by being prudent in our capital allocation. Accordingly, we have revised our first half 2025 capital program to reduce expenditures by opting to defer drilling in the Clearwater and Bluesky formations in Peace River that was initially planned for the

second quarter. Moreover, should commodity prices not improve by the time spring break-up is over, we will significantly reduce our second half 2025 capital program to keep production flat at ~29,000 boe/d. Given the significant discount that we believe our shares trade to our intrinsic value, we will re-allocate capital to a combination of incremental stock repurchases and additional debt paydown until such time when commodity prices and development returns are supportive of resuming production growth. Lastly, with the closing of the sale of our Pembina Assets and the associated production, we are withdrawing our three-year growth plan to grow production to 50,000 boe/d in 2026 that was issued in September 2023. We currently plan to provide our second half 2025 guidance in late June.”

2025 FIRST Quarter Corporate Highlights

Funds Flow – The Company generated FFO of $100.1 million ($1.36 per share basic) compared to $84.4 million ($1.09 per share basic) in the first quarter of 2024. Higher revenues from increased production levels resulted in higher FFO in 2025, which was partially offset by higher net operating and transportation costs as we continued to increase development and grow production in our Peace River area.
Capital Development – First quarter capital expenditures totalled $128.4 million (2024 – $114.3 million) with six drilling rigs in operation, five of which were focused on exploration/appraisal and development activities in Peace River. Our abandonment program was also active during the quarter, with decommissioning expenditures of $6.6 million (2024 – $10.1 million).
Share Buyback Program – A total of approximately 1.2 million shares were repurchased and cancelled under the Company’s normal course issuer bid (“NCIB”) for $9.6 million (at an average price of $8.29 per share) in the first quarter of 2025.
In February, the Company renewed our NCIB with the Toronto Stock Exchange, allowing for the purchase of up to 7,144,408 common shares over a period of 12 months from March 3, 2025, to March 2, 2026.
Net Operating Costs – Net operating costs of $15.72 per boe in the first quarter of 2025 were higher than the corresponding period in 2024 ($13.91 per boe). Increased trucking costs due to higher than anticipated initial water volumes associated with our larger Peace River drilling program, additional repair and maintenance activity, and land survey costs required as part of the Pembina disposition contributed to this increase, which was partially offset by lower power costs.
General and administrative (“G&A”) Costs – G&A costs decreased to $1.61 per boe in the first quarter of 2025 compared to $1.77 per boe in 2024, largely due to our higher production base during 2025.
Net Debt – Net debt levels were $459.9 million at March 31, 2025, compared to $411.7 million at December 31, 2024. Our active first quarter 2025 development program, which resulted in a higher working capital deficiency, contributed to this short-term increase.
Post Transaction close in April 2025, the cash proceeds were applied to the Company’s syndicated credit facility, reducing our net debt by $211 million to approximately $250 million, excluding the value of our InPlay share position.
Net Income – Net income for the first quarter of 2025 was $15.4 million ($0.21 per share basic) versus $11.9 million ($0.15 per share basic) in 2024. First quarter 2025 net income benefitted from increased production levels, which was partially offset by our higher net operating and transportation costs due to our larger production base and expanded operations in Peace River compared to the first quarter of 2024.

Highlights SUBSEQUENT TO first quarter 2025

Pembina Asset Transaction – On April 7, 2025, we closed our previously announced Pembina Asset disposition to InPlay. The Transaction has an effective date of December 1, 2024, and includes all the Company's assets in Pembina, except for our non-operated interest in the Pembina Cardium Unit #11.
Semi-Annual Borrowing Base Redetermination – Obsidian Energy completed our semi-annual borrowing base redetermination upon closing the Transaction, which resulted in an aggregate amount available under our syndicated credit facility of $235.0 million. The revolving period and maturity dates under the syndicated credit facility were extended to May 31, 2026, and May 31, 2027, respectively. The Company used the cash proceeds from the Pembina disposition to reduce the amount outstanding under the syndicated credit facility to approximately $30 million.
Senior Unsecured Notes – In light of market conditions, the Company was able to repurchase $2.0 million of our senior unsecured notes on the open market at a price of $1,027.50 per $1,000 principal amount, which was below the recent free cash flow offer price of $1,030 per $1,000 principal amount. Currently, we have $112.2 million of senior unsecured notes outstanding.
Share Buyback Program – We repurchased and cancelled an additional approximate 2.3 million common shares at an average price of $6.34 share for total consideration of approximately $14.9 million under the NCIB up to May 6, 2025. In 2025, repurchases and cancellations total approximately 3.5 million common shares at an average price of $6.98 per share for total consideration of approximately $24.5 million.
Since the inception of the NCIB in 2023, we have re-purchased and cancelled a total of approximately 13.1 million common shares for total consideration of approximately $113.6 million.

2025 first QUARTER CAPITAL program

Weighted toward our Peace River heavy oil area, activities in the first half of 2025 to date focused on three distinct objectives:

Execute an early exploration/appraisal program for both the Clearwater and Bluesky formations to continue to appraise our land base, focused on areas with winter only access and seasonal testing limitations;
Prior to breakup, transition to development drilling in the established, all season access fields of Harmon Valley South (“HVS”) (Bluesky formation) and Dawson (Clearwater formation) to increase production; and
Initiate an integrated waterflood pilot in the Clearwater formation to continue the development of the Dawson field. The Company drilled three producer wells and are currently drilling the first of two dedicated water injections wells for the project.

Our first half 2025 capital program utilized five rigs in Peace River drilling both development and exploration/appraisal wells in the Clearwater and Bluesky formations with a sixth rig to drill the four-well commitment in the Pembina area as part of the Transaction (costs included as part of interim closing adjustments). The breakdown of operated wells that were rig released and on production during the first quarter of 2025 are as follows:

	Q1 Gross (Net) Wells
	Rig Released	On Production
DEVELOPMENT WELLS
Heavy Oil Assets
Peace River (Bluesky)	11 (9.4)	6 (5.0)
Peace River (Clearwater)	4 (4.0)	2 (2.0)
Light Oil Assets
Pembina (Cardium)2	4 (4.0)	4 (4.0)
	19 (17.4)	12 (10.9)1
EXPLORATION/APPRAISAL WELLS
Peace River (Bluesky)	3 (3.0)	3 (3.0)
Peace River (Clearwater)	4 (4.0)	4 (4.0)
	7 (7.0)	7 (7.0)
TOTAL OPERATED WELLS3	26 (24.4)	19 (17.9)1
<ul><li><font>Three (3.0 net) wells placed on production in the first quarter of 2025 were rig released in 2024 and, which are included in the total. </font></li><li><font>Capital expenditures for the Pembina wells were paid for by InPlay as they were included in the interim closing adjustments of the Transaction. </font></li><li><font>Excluding injection or disposal wells. </font></li><li><font>In addition, Obsidian Energy participated in the rig release of five non-operated (2.2 net) wells in the first quarter of 2025</font><font>.</font></li></ul>
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HEAVY OIL ASSET highlights

Exploration/Appraisal Program

A total of 7 (7.0 net) exploration/appraisal wells were drilled, rig released and placed on production in Peace River through a combination of whipstock wells with logs and/or core retrieval and a limited production test as winter access permitted. All seven exploration/appraisal wells showed encouraging results, encountering and producing oil, while five of the seven wells displayed strong preliminary tests.

Nampa – Three (3.0 net) exploration/appraisal wells encountered solid reservoir with high-quality oil from three distinct sands, starting with the southern 9-06 Pad that targeted two individual sands in the upper Clearwater formation (previously untested by Obsidian Energy in the area). The deeper sand displayed a 30-day initial production (“IP”) rate of 105 boe/d at 13.3O API oil while the shallower sand produced at a 30-day IP rate of 74 boe/d at 11.6O API oil.

Additionally, a second well was drilled at the Nampa 7-34 Pad in the primary Clearwater reservoir, which produced at a 30-day IP rate of 128 boe/d at 15.9O API oil and provided a delineation test for the seasonally restarted 6-28 Pad (previously released at a 30-day IP rate of 170 boe/d in 2024). The 6-28 Pad now has a prolonged production test at a 123-day IP rate of 118 boe/d. Both wells are shut in for seasonal access following testing.

Throughout the Nampa field, early production results indicate potential for both primary stacked development and future enhanced oil recovery due to the relatively higher quality oil in this region.

HVS – We drilled two (2.0 net) Bluesky formation exploration/appraisal wells testing the southern extent of our core Harmon Valley South field. Both wells encountered significant oil pay in this previously untested area with early results from truncated production tests, indicating economic potential in the field. The 15-15 Pad tested at a peak production rate of 151 boe/d with an improving 83 percent watercut prior to shut in; and the 10-27 Pad showed encouraging results with a pre-optimized improving peak rate of 69 boe/d at a 95 percent watercut despite a lower number of horizontal legs than standard (8 versus standard 11).

In total, we estimate that a minimum of 625 boe/d is currently shut in from these exploration/appraisal programs due to seasonal access. Economic evaluation of all season access construction and associated land acquisition is underway in all fields.

Development Program

We rig released 15 (13.4 net) operated development wells in Peace River and brought 8 (7.0 net) wells on production during the first quarter. With the majority of wells rig released late in the first quarter, a significant number of wells came on production towards the end of April with strong initial results.

Dawson 4-23 Pad – Infill drilling continued with four (4.0 net) wells, all of which are currently on production utilizing simultaneous facilities construction and drilling operations to expediate timing of the wells coming onstream. The first two wells produced at a 30-day IP rate of 293 boe/d and 222 boe/d, respectively. The second two wells were brought onstream and are exhibiting steadily improving oil rates.
HVS – We drilled five (5.0 net) follow up wells following the success of the first wells on our 13-08 and 13-18 Pads in 2024 (30-day IP rates of 448 and 503 boe/d, respectively). Two of the five wells further test our “waffle well” drilling design, which has shown successful results in increasing oil recovery on existing Pads. All five wells are currently on production; the well with the longest production history is on the 13-08 Pad, which had a 16-day production rate of 424 boe/d.
Walrus 7-21 Pad – Two wells (one earning, referenced below) came on production in mid-April and are in the process of cleaning up.
Land Farm-In Earning Wells – Four (2.6 net) wells were drilled in HVS and East Seal as part of earning or joint venture land agreements to further delineate new areas of Peace River. The first of two (1.3 net) wells from our East Seal 4-14 Pad farm-in averaged a 30-day IP rate of 259 gross boe/d. The second well is shut in and slated to come on production after break-up when access improves. In the southern part of our HVS field, the first of two (1.3 net) wells at the 16-09 Pad produced at a 27-day IP of 138 gross boe/d, while the second well is in the process of cleaning up.

In April and early May, we brought an additional 12 (11.5 net) operated and four (1.8 net) non-operated wells onstream, bringing the total operated wells on production to date to 35 (31.2 net) (including three (3.0 net) wells from our 2024 program). The remaining wells drilled from our first half 2025 program are expected to be on production by the end of June.

Waterflood Pilot Project

The Company began drilling a new Clearwater waterflood pilot in the middle of our Peace River Dawson field at the 4-24 Pad that includes three (3 net) producer and two (2 net) single leg injector wells. The five-well waterflood pilot design mimics successful peer waterflood patterns in analogous industry fields and will be the first Obsidian Energy integrated Clearwater waterflood pilot in the Peace River area.

We plan to temporarily produce the injectors prior to water injection to evaluate reservoir characteristics. The first two producing wells on the pad came on production on April 27, 2025, and the remaining wells are expected to come onstream following the completion of drilling operations utilizing SIMOPS1.

LIGHT OIL ASSETS highlights

Development activity for the first quarter of 2025 was focused in the Pembina (Cardium) area to drill the four (4.0 net) well commitment as part of the Transaction; all drilling and associated costs were included in the interim closing adjustments at InPlay’s expense. All rights for the wells and associated infrastructure assets were transferred to InPlay upon the Transaction close on April 7.

1 SIMOPS, or Simultaneous Operations, refers to when multiple work activities, potentially involving different groups or under different management systems, are carried out simultaneously in the same area.

updated guidance

Revised H1 2025 Capital and Operating Program

As a result of the volatile commodity price environment the Company has decided not to drill a portion of our first half program that utilized three rigs in the second quarter to drill through breakup in Peace River. Peace River development has now been reduced to one rig drilling the integrated waterflood pilot well at our Dawson Clearwater field. Completion activities are continuing during the second quarter as we bring wells on production that were drilled in our first quarter program.

The revised breakdown of operated wells expected to be rig released during the first half of 2025 is as follows:

	H1 2025 <br>Gross (Net) Wells	Revised H1 2025 <br>Gross (Net) Wells
DEVELOPMENT WELLS
Heavy Oil Assets
Peace River (Bluesky)	13 (11.4)	12 (10.4)
Peace River (Clearwater)	14 (14.0)	7 (7.0)
Light Oil Assets
Pembina (Cardium)1	4 (4.0)	4 (4.0)
	31 (29.4)	23 (21.4)
EXPLORATION/APPRAISAL WELLS
Peace River (Bluesky)	3 (3.0)	3 (3.0)
Peace River (Clearwater)	4 (4.0)	4 (4.0)
	7 (7.0)	7 (7.0)
TOTAL OPERATED WELLS2,3	38 (36.4)	30 (28.4)
<ul><li><font>Capital expenditures for the Pembina wells were paid for by InPlay as they were included in the interim closing adjustments of the Transaction. </font></li><li><font>Excluding injection or disposal wells. </font></li><li><font>In addition, Obsidian Energy expects to participate in a total of five non-operated (2.2 net) wells in the first half of 2025</font><font>.</font><font> </font></li></ul>
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As a result of the decision to not drill some of our first half activity, we have revised our first half 2025 guidance below.

		H1 2025<br><br>Guidance	Revised H1 2025E Guidance	Q2 2025E
Production1	boe/d	33,300 – 34,300	33,600 – 34,000	28,800 – 29,600
% Oil and NGLs	%	72	71	72
Capital expenditures2	$ millions	185 – 195	165 – 170	37 – 42
Decommissioning expenditures	$ millions	11 – 12	11 – 12	4 – 5
Net operating costs3	$/boe	14.15 – 14.60	14.74 – 14.90	13.50 – 13.85
General & administrative	$/boe	1.75 – 1.85	1.78 – 1.82	2.00 – 2.10
Based on midpoint of above guidance
FFO3,5	$ millions	180	160	60
FFO/share6	$/share	2.44	2.23	0.86
FCF3,5	$ millions	(22)	(19)	16
FCF/share6	$/share	(0.29)	(0.27)	0.23
Net debt (prior to NCIB)7	$ millions	240	255	255
Annualized net debt (prior to NCIB) to FFO7	times	0.7	0.8	1.1
Pricing assumptions
---	---	---	---	---
WTI (May – June)4	US$/bbl	71.00	60.00	60.00
MSW Differential (June)4	US$/bbl	5.00	2.00	2.00
WCS Differential (June)4	US$/bbl	14.00	10.00	10.00
AECO (May – June)4	$/GJ	2.00	2.00	2.00
Asset level information, based on midpoint of above guidance		H1 2025<br><br>Guidance	Revised H1 2025E Guidance	Q2 2025E
---	---	---	---	---
Heavy Oil
Average production	Boe/d	12,900	12,300	13,000
Capital expenditures2	$ millions	142	123	27
Net operating costs3	$/boe	17.25	19.25	18.85
Netback3	$/boe	34.00	26.25	22.10
Net operating income3	$ millions	80	60	26
Asset level FCF	$ millions	(62)	(63)	(1)
Light Oil
Average production	Boe/d	20,900	21,500	16,200
Capital expenditures2	$ millions	45	43	12
Net operating costs3	$/boe	12.35	12.35	9.60
Netback3	$/boe	31.50	30.50	26.45
Net operating income3	$ millions	120	120	38
Asset level FCF	$ millions	75	77	26

Approximate mid-point of guidance range: 9,440 bbl/d light oil, 12,200 bbl/d heavy oil, 2,530 bbl/d NGLs and 57.8 mmcf/d natural gas. Approximate mid-point of revised guidance range: 9,730 bbl/d light oil, 11,600 bbl/d heavy oil, 2,590 bbl/d NGLs and 59.3 mmcf/d natural gas. Average production volumes include a minimal amount of forecasted production associated with exploration/appraisal capital expenditures. First half and second quarter 2025E includes approximately 6,060 boe/d and 850 boe/d of production (field estimates), respectively, associated with the Pembina Asset disposition.
Capital expenditures included approximately $34 million for Peace River exploration/appraisal and enhanced oil recovery waterflood activities with minimal impact on forecasted production volumes. Asset level capital did not include $3 million in corporate capital. Revised capital expenditures include approximately $28 million for Peace River exploration/appraisal and enhanced oil recovery waterflood activities with minimal impact on forecasted production volumes. Asset level capital does not include $2 million in corporate capital.
We adhere to generally accepted accounting principles (“GAAP”); however, we also employ certain non-GAAP measures to analyze financial performance, financial position, and cash flow, including the terms FFO, FCF, net debt, netback, net operating costs and net operating income. Please refer to the ‘Non-GAAP and Other Financial Measures’ advisory section below for further detail.
Pricing assumptions were for the first half of 2025 and included risk management (hedging) adjustments as of February 24, 2025. WTI and AECO pricing as well as MSW and WCS differentials assumptions for the first half 2025E forecasted for March to June 30, 2025. H1 2025E pricing assumptions, including actuals realized from January 1, 2025, to February 18, 2025, resulted in WTI of US$71.82/bbl, MSW differentials of US$4.93/bbl, WCS differentials of US$13.41/bbl, AECO of $2.00/GJ, and FX of 1.42x CAD/USD.

Revised first half 2025 pricing assumptions include risk management (hedging) adjustments as of May 1, 2025. WTI and AECO pricing as well as MSW and WCS differentials assumptions for the first half 2025E are forecasted for May to June 30, 2025. H1 2025E pricing assumptions, including actuals realized from January 1, 2025, to April 30, 2025, result in WTI of US$66.20/bbl, MSW differentials of US$4.05/bbl, WCS differentials of US$11.62/bbl, AECO of $2.01/GJ, and FX of 1.41x CAD/USD.

FFO and FCF included approximately $1 million of estimated charges for the first half of 2025 related to the deferred share units and performance share units cash compensation amounts, which was based on a share price of $7.66 per share. Revised FFO and FCF include approximately $3 million of estimated gain for the first half of 2025 related to the deferred share units and performance share units cash compensation amounts, which are based on a share price of $6.48 per share
Per share calculations were based on an estimated 73.7 million weighted average shares outstanding for the six months ended June 30, 2025. Revised per share calculations are based on an estimated 71.8 million weighted average shares outstanding for the six months ended June 30, 2025.
Net debt figures were estimated as at June 30, 2025. Revised net debt figures did not include the impact of the 9.1 million InPlay Oil Corp. common shares, which were received as part of the Transaction, valued at $60.0 million as calculated with May 5, 2025, closing price of $6.57. If included, net debt would be reduced to $195 million with a 0.8x net debt (prior to NCIB) to FFO ratio.

Guidance Sensitivity Table
Variable	Range	Change in Q2 2025E FFO ($ millions)
WTI (US$/bbl)	+/- $1.00/bbl	1.2
MSW light oil differential (US$/bbl)	+/- $1.00/bbl	0.1
WCS heavy oil differential (US$/bbl)	+/- $1.00/bbl	0.2
Change in AECO ($/GJ)	+/- $0.25/GJ	0.3

HEDGING UPDATE

In the first quarter of 2025, the Company’s hedging activities led to a realized gain of $2.7 million, primarily related to our natural gas contracts. The following contracts are in place for 2025 on a weighted average basis:

Oil Contracts

Type	Remaining<br>Term	Volume<br>(bbl/d)	Swap <br>Price (C$/bbl)
WTI Swap	April 2025	5,750	$98.78
WTI Swap	May 2025	3,750	$92.80
WTI Collar	April 2025	3,500	$95.00 - $99.00
WTI Collar	May 2025	3,500	$97.29 - $101.79
WCS Differential	April 2025 - June 2025	8,500	($19.39)
WCS Differential	July 2025 - September 2025	7,750	($18.83)
WCS Differential	October 2025 - December 2025	6,000	($19.30)
WSW Differential	April 2025 - June 2025	1,500	($7.90)
MSW Differential	July 2025 - September 2025	500	($6.59)

AECO Natural Gas Contracts

Type	Remaining<br>Term		Swap Price (C$/mcf)
AECO Swap	April 2025	17,062	$2.24
AECO Swap	May – October 2025	19,905	$2.26
AECO Collar	April – October 2025	1,896	$2.11 - $2.64

UPDATED CORPORATE PRESENTATION

For further information on these and other matters, Obsidian Energy will post an updated corporate presentation on our website, www.obsidianenergy.com, in due course.

ANNUAL AND SPECIAL MEETING

The Company’s Annual and Special Meeting (the “Meeting”) is scheduled for Wednesday, May 7, 2025, at 1:00 p.m. MT (3:00 p.m. ET) at the offices of Obsidian Energy, Suite 200, 207 – 9 Avenue SW, Calgary, Alberta. Access to the Meeting will, subject to Company’s by-laws, be limited to essential personnel, registered shareholders and proxyholders entitled to attend and vote at the Meeting as well as invited guests. Additional information about the Meeting can be found on our website.

In association with the Meeting, our President and CEO, Stephen Loukas and other members of management will host a webcast presentation after the formal portion of the meeting at 2:00 p.m. MT (4:00 pm ET) (the “Presentation”).

The Presentation will be broadcast live on the Internet and may be accessed either through our website or directly at the webcast portal. Those who wish to listen to the Presentation should connect at least five to 10 minutes prior to the scheduled start time through the following numbers:

Canada/U.S.:	1-844-763-8274 (toll-free)
International:	1-647-484-8814

A question-and-answer session will be held following the Presentation. If you wish to submit a question to the Company, participants can do so ahead of time after registering on the webcast portal on the Intranet or by emailing questions to investor.relations@obsidianenergy.com. An updated corporate presentation and the Presentation will be available following the webcast on our website.

ADDITIONAL READER ADVISORIES

OIL AND GAS INFORMATION ADVISORY

Barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of crude oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is misleading as an indication of value.

TEST RESULTS AND INITIAL PRODUCTION RATES

Test results and initial production rates disclosed herein, particularly those short in duration, may not necessarily be indicative of long-term performance or of ultimate recovery. Readers are cautioned that short-term rates should not be relied upon as indicators of future performance of these wells and therefore should not be relied upon for investment or other purposes. A pressure transient analysis or well-test interpretation has not been carried out and thus certain of the test results provided herein should be considered preliminary until such analysis or interpretation has been completed.

NON-GAAP AND OTHER FINANCIAL MEASURES

Throughout this news release and in other materials disclosed by the Company, we employ certain measures to analyze financial performance, financial position, and cash flow. These non-GAAP and other financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures provided by other issuers. The non-GAAP and other financial measures should not be considered to be more meaningful than GAAP measures which are determined in accordance with IFRS, such as net income and cash flow from operating activities as indicators of our performance. The interim consolidated financial statements and MD&A as at and for three months ended March 31, 2025, will be available in due course on the Company's website at www.obsidianenergy.com and under our SEDAR+ profile at www.sedarplus.ca and EDGAR profile at www.sec.gov. The disclosure under the section ’Non-GAAP and Other Financial Measures’ in the MD&A is incorporated by reference into this news release.

Non-GAAP Financial Measures

The following measures are non-GAAP financial measures: FFO; net debt; net operating costs; netback; and free cash flow (“FCF”). These non-GAAP financial measures are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other issuers. See the disclosure under the section ’Non-GAAP and Other Financial Measures’ in our MD&A for the three-month period ended March 31, 2025, for an explanation of the composition of these measures, how these measures provide useful information to an investor, and the additional purposes, if any, for which management uses these measures.

For a reconciliation of FFO to cash flow from operating activities, being our nearest measure prescribed by IFRS, see ’Non-GAAP Measures Reconciliations’ below.

For a reconciliation of net debt to long-term debt, being our nearest measure prescribed by IFRS, see ’Non-GAAP Measures Reconciliations’ below.

For a reconciliation of net operating costs to operating costs, being our nearest measure prescribed by IFRS, see ’Non-GAAP Measures Reconciliations’ below.

For a reconciliation of netback to sales price, being our nearest measure prescribed by IFRS, see ’Non-GAAP Measures Reconciliations’ below.

For a reconciliation of FCF to cash flow from operating activities, being our nearest measure prescribed by IFRS, see ’Non-GAAP Measures Reconciliations’ below.

Non-GAAP Ratios

The following measures are non-GAAP ratios: FFO (basic per share ($/share) and diluted per share ($/share)), which use FFO as a component; net operating costs ($/boe), which uses net operating costs as a component; netback ($/boe), which uses netback as a component; and net debt to FFO, which uses net debt and FFO as components. These non-GAAP ratios are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other issuers. See the disclosure under the section ’Non-GAAP and Other Financial Measures’ in our MD&A in our MD&A for three months ended March 31, 2025, for an explanation of the composition of these non-GAAP ratios, how these non-GAAP ratios provide useful information to an investor, and the additional purposes, if any, for which management uses these non-GAAP ratios.

Supplementary Financial Measures

The following measures are supplementary financial measures: average sales price; cash flow from operating activities (basic per share and diluted per share); and G&A costs ($/boe). See the disclosure under the section ’Non-GAAP and Other Financial Measures’ in our MD&A for the three months ended March 31, 2025, for an explanation of the composition of these measures.

Non-GAAP Measures Reconciliations

Cash Flow from Operating Activities, FFO and FCF

	Three months ended<br> March 31
(millions)	2025			2024
Cash flow from operating activities	$	96.7		$	58.7
Change in non-cash working capital		(5.8	)		13.4
Decommissioning expenditures		6.6			10.1
Onerous office lease settlements		0.7			2.3
Deferred financing costs		(0.4	)		(0.6	)
Restructuring		0.1			-
Transaction costs		2.2			-
Other expenses		-			0.5
Funds flow from operations		100.1			84.4
Capital expenditures		(128.4	)		(114.3	)
Decommissioning expenditures		(6.6	)		(10.1	)
Free cash flow	$	(34.9	)	$	(40.0	)

Netback to Sales Price

	Three months ended<br> March 31
(millions)	2025			2024
Sales price	$	211.3		$	177.8
Risk management gain		2.7			3.8
Net sales price		214.0			181.6
Royalties		(28.4	)		(22.0)
Net operating costs		(54.4	)		(43.2)
Transportation		(16.8	)		(12.3)
Netback	$	114.4		$	104.1

Net Operating Costs to Operating Costs

	Three months ended<br> March 31
(millions)	2025			2024
Operating costs	$	59.0		$	49.3
Less processing fees		(2.8	)		(3.9)
Less road use recoveries		(1.8	)		(2.1)
Less realized power risk management loss		-			(0.1)
Net operating costs	$	54.4		$	43.2

Net Debt to Long-Term Debt

	As at
	March 31
(millions)	2025				2024
Long-term debt
Syndicated credit facility		$	239.5			$	167.5
Senior unsecured notes			114.2				114.2
Unamortized discount of senior unsecured notes			(1.0	)			(1.5)
Deferred financing costs			(2.3	)			(2.6)
Total			350.4				277.6
Working capital deficiency
Cash			(0.3	)			(0.3)
Accounts receivable			(86.0	)			(83.2)
Prepaid expenses and other			(15.2	)			(14.3)
Accounts payable and accrued liabilities			211.0				206.5
Total			109.5				108.7
Net debt		$	459.9			$	386.3

ABBREVIATIONS

Oil		Natural Gas
bbl	barrel or barrels	AECO	Alberta benchmark price for natural gas
bbl/d	barrels per day	GJ	gigajoule
boe	barrel of oil equivalent	mcf	thousand cubic feet
boe/d	barrels of oil equivalent per day	mcf/d	thousand cubic feet per day
MSW	Mixed Sweet Blend	mmcf/d	million cubic feet per day
WTI	West Texas Intermediate
WCS	Western Canadian Select

FORWARD-LOOKING STATEMENTS

Certain statements contained in this document constitute forward-looking statements or information (collectively “forward-looking statements”) within the meaning of the "safe harbour" provisions of applicable securities legislation. Forward-looking statements are typically identified by words such as “anticipate”, “continue”, “estimate”, “expect”, “forecast”, “budget”, “may”, “will”, “project”, “could”, “plan”, “intend”, “should”, “believe”, “outlook”, “objective”, “aim”, “potential”, “target” and similar words suggesting future events or future performance. In addition, statements relating to “reserves” or “resources” are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated and can be profitably produced in the future. In particular, this document contains forward-looking statements pertaining to, without limitation, the following: that we will file the annual audited consolidated financial statements and MD&A on our website, SEDAR+ and EDGAR in due course; how we expect to improve production deliverability and returns; our expectations for second half 2025 capital program to keep production flat if commodity prices do not improve by spring break-up; when we plan to issue second half 2025 guidance; how we plan to re-allocate capital if the commodity price and development returns are not supportive of production growth; our revised expectations for the first half 2025 drilling program and capital expenditures; our development and production expectations in the Peace River area; our expectations for on production and onstream dates; our expectations in connection with the Clearwater injector pilot in the Peace River Dawson field; our expectations for production that is shut-in due to seasonal access; our revised first half and second quarter 2025 guidance for production, production mix, capital and decommissioning expenditures, net operating and G&A costs, FFO, FFO/share, FCF, FCF/share, net debt (prior to NCIB, and annualized net debt (prior to NCIB) to FFO; our revised guidance for asset level average production, capital expenditures, net operating costs, netbacks, net operation income and the asset level FCF; our guidance sensitivities; our hedges; and the timing of our updated corporate presentation and Meeting and Presentation.

With respect to forward-looking statements contained in this document, the Company has made assumptions regarding, among other things: the duration and impact of tariffs that are currently in effect on goods exported from or imported into Canada, and that other than the tariffs that are currently in effect, neither the U.S. nor Canada (i) increases the rate or scope of such tariffs, reenacts tariffs that are currently suspended, 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; that the Company does not dispose of or acquire material producing properties or royalties or other interests therein (except as disclosed herein); that regional and/or global health related events will not have any adverse impact on energy demand and commodity prices in the future; global energy policies going forward, including the continued ability and willingness of members of OPEC and other nations to agree on and adhere to production quotas from time to time; our ability to qualify for (or continue to qualify for) new or existing government programs, and obtain financial assistance therefrom, and the impact of those programs on our financial condition; our ability to execute our plans as described herein and in our other disclosure documents, and the impact that the successful execution of such plans will have on our Company and our stakeholders, including our ability to return capital to shareholders and/or further reduce debt levels; future capital expenditure and decommissioning expenditure levels; expectations and assumptions concerning applicable laws and regulations, including with respect to environmental, safety and tax matters; future operating costs and G&A costs and the impact of inflation thereon; future oil, natural gas liquids and natural gas prices and differentials between light, medium and heavy oil prices and Canadian, WTI and world oil and natural gas prices; future hedging activities; future oil, natural gas liquids and natural gas production levels; future exchange rates, interest rates and inflation rates; future debt levels; our ability to execute our capital programs as planned without significant adverse impacts from various factors beyond our control, including extreme weather events such as wild fires, flooding and drought, infrastructure access (including the potential for blockades or other activism) and delays in obtaining regulatory approvals and third party consents; the ability of the Company's contractual counterparties to perform their contractual obligations; our ability to obtain equipment in a timely manner to carry out development activities and the costs thereof; our ability to market our oil and natural gas successfully to current and new customers; our ability to obtain

financing on acceptable terms, including our ability (if necessary) to extend the revolving period and term out period of our credit facility, our ability to maintain the existing borrowing base under our credit facility, our ability (if necessary) to replace our syndicated bank facility and our ability (if necessary) to finance the repayment of our senior unsecured notes on maturity or pursuant to the terms of the underlying agreement; the accuracy of our estimated reserve volumes; and our ability to add production and reserves through our development and exploitation activities.

The future acquisition by the Company of the Company's common shares pursuant to its share buyback program (including through an NCIB), if any, and the level thereof is uncertain. Any decision to acquire common shares of the Company pursuant to the share buyback program will be subject to the discretion of the board of directors of the Company and may depend on a variety of factors, including, without limitation, the Company's business performance, financial condition, financial requirements, growth plans, expected capital requirements and other conditions existing at such future time including, without limitation, contractual restrictions and satisfaction of the solvency tests imposed on the Company under applicable corporate law. There can be no assurance of the number of common shares of the Company that the Company will acquire pursuant to its share buyback program, if any, in the future.

Although the Company believes that the expectations reflected in the forward-looking statements contained in this document, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the forward-looking statements contained herein will not be correct, which may cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things: the risk that (i) the tariffs that are currently in effect on goods exported from or imported into Canada continue in effect for an extended period of time, the tariffs that have been threatened are implemented, that tariffs that are currently suspended are reactivated, the rate or scope of tariffs are increased, or new tariffs are imposed, 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 or threatened to be imposed by the U.S. on other countries and retaliatory tariffs imposed or threatened to be imposed by other countries on the U.S., will trigger a broader global trade war which 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, including by decreasing demand for (and the price of) oil and natural gas, disrupting supply chains, increasing costs, causing volatility in global financial markets, and limiting access to financing; the possibility that we change our budgets (including our capital expenditure budgets) in response to internal and external factors, including those described herein; the possibility that the Company will not be able to continue to successfully execute our business plans and strategies in part or in full, and the possibility that some or all of the benefits that the Company anticipates will accrue to our Company and our stakeholders as a result of the successful execution of such plans and strategies do not materialize (such as our inability to return capital to shareholders and/or reduce debt levels to the extent anticipated or at all); the possibility that the Company ceases to qualify for, or does not qualify for, one or more existing or new government assistance programs, that the impact of such programs falls below our expectations, that the benefits under one or more of such programs is decreased, or that one or more of such programs is discontinued; the impact on energy demand and commodity prices of regional and/or global health related events and the responses of governments and the public thereto, including the risk that the amount of energy demand destruction and/or the length of the decreased demand exceeds our expectations; the risk that there is another significant decrease in the valuation of oil and natural gas companies and their securities and in confidence in the oil and natural gas industry generally, whether caused by regional and/or global health related events, the worldwide transition towards less reliance on fossil fuels and/or other factors; the risk that the financial capacity of the Company's contractual counterparties is adversely affected and potentially their ability to perform their contractual obligations; the possibility that the revolving period and/or term out period of our credit facility

and the maturity date of our senior unsecured notes is not extended (if necessary), that the borrowing base under our credit facility is reduced, that the Company is unable to renew or refinance our credit facilities on acceptable terms or at all and/or finance the repayment of our senior unsecured notes when they mature on acceptable terms or at all and/or obtain new debt and/or equity financing to replace our credit facilities and/or senior unsecured notes or to fund other activities; the possibility that we are unable to complete one or more repurchase offers pursuant to our Notes when otherwise required to do so; the possibility that we are forced to shut-in production, whether due to commodity prices decreasing, extreme weather events such as wild fires, inability to access our properties due to blockades or other activism, or other factors; the risk that OPEC and other nations fail to agree on and/or adhere to production quotas from time to time that are sufficient to balance supply and demand fundamentals for oil; general economic and political conditions in Canada, the U.S. and globally, and in particular, the effect that those conditions have on commodity prices and our access to capital; industry conditions, including fluctuations in the price of oil, natural gas liquids and natural gas, price differentials for oil and natural gas produced in Canada as compared to other markets, and transportation restrictions, including pipeline and railway capacity constraints; fluctuations in foreign exchange, including the impact of the Canadian/U.S. dollar exchange rate on our revenues and expenses; fluctuations in interest rates, including the effects of interest rates on our borrowing costs and on economic activity, and including the risk that elevated interest rates cause or contribute to the onset of a recession; the risk that our costs increase due to inflation, supply chain disruptions, scarcity of labour and/or other factors, adversely affecting our profitability; unanticipated operating events or environmental events that can reduce production or cause production to be shut-in or delayed (including extreme cold during winter months, wild fires, flooding and droughts (which could limit our access to the water we require for our operations)); the risk that wars and other armed conflicts adversely affect world economies and the demand for oil and natural gas, including the ongoing war between Russian and Ukraine and/or hostilities in the Middle East; the possibility that fuel conservation measures, alternative fuel requirements, increasing consumer demand for alternatives to hydrocarbons, government mandates requiring the sale of electric vehicles and/or electrification of the power grid, and technological advances in fuel economy and renewable energy generation systems could permanently reduce the demand for oil and natural gas and/or permanently impair the Company's ability to obtain financing and/or insurance on acceptable terms or at all, and the possibility that some or all of these risks are heightened as a result of the response of governments, financial institutions and consumers to a regional and/or global health related event and/or the influence of public opinion and/or special interest groups.

Additional information on these and other factors that could affect Obsidian Energy, or its operations or financial results, are included in the Company's Annual Information Form (see ’Risk Factors’ and ’Forward-Looking Statements’ therein) which may be accessed through the SEDAR+ website (www.sedarplus.ca), EDGAR website (www.sec.gov) or Obsidian Energy's website. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

Unless otherwise specified, the forward-looking statements contained in this document speak only as of the date of this document. Except as expressly required by applicable securities laws, we do not undertake any obligation to publicly update or revise any forward-looking statements. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

Obsidian Energy shares are listed on both the Toronto Stock Exchange in Canada and the NYSE American in the United States under the symbol "OBE".

All figures are in Canadian dollars unless otherwise stated.

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

E-mail: investor.relations@obsidianenergy.com

EX-99.2

Exhibit 99.2

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three months ended March 31, 2025

This management’s discussion and analysis of financial condition and results of operations (“MD&A”) of Obsidian Energy Ltd. (“Obsidian Energy”, the “Company”, “we”, “us”, “our”) should be read in conjunction with the Company's unaudited interim condensed consolidated financial statements for the three months ended March 31, 2025 and the Company’s audited consolidated financial statements and MD&A for the year ended December 31, 2024. The date of this MD&A is May 6, 2025. All dollar amounts contained in this MD&A are expressed in millions of Canadian dollars unless noted otherwise.

Throughout this MD&A and in other materials disclosed by the Company, we adhere to generally accepted accounting principles ("GAAP"), however the Company also employs certain non-GAAP measures to analyze financial performance, financial position, and cash flow, including funds flow from operations, netback, sales, gross revenues, net operating costs, net debt and free cash flow. Additionally, other financial measures are also used to analyze performance. These non-GAAP and other financial measures do not have any standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and therefore may not be comparable to similar measures provided by other issuers. The non-GAAP and other financial measures should not be considered to be more meaningful than GAAP measures which are determined in accordance with IFRS, such as net income (loss) and cash flow from operating activities, as indicators of our performance.

This MD&A also contains oil and natural gas information and forward-looking statements. Please see the Company's disclosure under the headings "Non-GAAP and Other Financial Measures", "Oil and Natural Gas Information", and "Forward-Looking Statements" included at the end of this MD&A.

Quarterly Financial Summary

(millions, except per share and production amounts) (unaudited)

	Mar. 31		Dec. 31			Sep. 30		Jun. 30		Mar. 31		Dec. 31		Sep. 30		Jun. 30
Three months ended	2025		2024			2024		2024		2024		2023		2023		2023
Production revenues	$	211.0	$	213.6		$	218.2	$	208.4	$	177.3	$	173.3	$	200.4	$	166.0
Cash flow from operating activities		96.7		115.0			110.3		77.9		58.7		117.7		95.3		67.1
Basic per share (1)		1.32		1.55			1.45		1.02		0.76		1.49		1.18		0.82
Diluted per share (1)		1.27		1.49			1.40		0.98		0.73		1.44		1.15		0.79
Funds flow from operations (2)		100.1		107.7			124.7		115.2		84.4		97.0		98.9		87.4
Basic per share (3)		1.36		1.45			1.64		1.51		1.09		1.23		1.22		1.07
Diluted per share (3)		1.31		1.39			1.58		1.44		1.05		1.18		1.19		1.03
Net income (loss)		15.4		(284.8	)		33.2		37.1		11.9		34.3		24.8		18.4
Basic per share		0.21		(3.83	)		0.44		0.48		0.15		0.44		0.31		0.22
Diluted per share	$	0.20	$	(3.83	)	$	0.42	$	0.46	$	0.15	$	0.42	$	0.30	$	0.22
Production
Light oil (bbl/d)		12,727		13,271			13,722		13,782		13,079		12,176		12,452		12,512
Heavy oil (bbl/d)		10,887		11,621			10,624		7,026		6,748		5,851		6,260		5,356
NGLs (bbl/d)		3,072		3,176			3,148		3,193		2,783		2,614		2,708		2,432
Natural gas (mmcf/d)		70		72			73		71		70		68		69		64
Total (boe/d)(4)		38,416		40,119			39,714		35,773		34,238		31,974		32,937		31,042

Supplementary financial measure. See "Non-GAAP and Other Financial Measures".
Non-GAAP financial measure. See "Non-GAAP and Other Financial Measures".
Non-GAAP ratio. See "Non-GAAP and Other Financial Measures".
Disclosure of production on a per boe basis in this MD&A consists of the constituent product types and their respective quantities. See also "Supplemental Production Disclosure" and "Oil and Natural Gas Information".

OBSIDIAN ENERGY FIRST QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 1

Cash flow from Operating Activities, Funds Flow from Operations and Free Cash Flow

	Three months ended March 31
(millions, except per share amounts)	2025			2024
Cash flow from operating activities	$	96.7		$	58.7
Change in non-cash working capital		(5.8	)		13.4
Decommissioning expenditures		6.6			10.1
Onerous office lease settlements		0.7			2.3
Deferred financing costs		(0.4	)		(0.6	)
Restructuring		0.1			-
Transaction costs		2.2			-
Other expenses		-			0.5
Funds flow from operations (1)		100.1			84.4
Capital expenditures		(128.4	)		(114.3	)
Decommissioning expenditures		(6.6	)		(10.1	)
Free Cash Flow (1)	$	(34.9	)	$	(40.0	)
Per share – funds flow from operations (2)
Basic per share	$	1.36		$	1.09
Diluted per share	$	1.31		$	1.05

Non-GAAP financial measure. See "Non-GAAP and Other Financial Measures".
Non-GAAP ratio. See "Non-GAAP and Other Financial Measures".

Cash flow from operating activities and funds flow from operations increased in Q1 2025 compared to Q1 2024 primarily due to higher production revenues, as a result of increased production levels from our active development program. This was partially offset by higher net operating and transportation costs, as we continue to increase development and production in our Peace River area as part of our growth plan.

Pembina Disposition

In April 2025, the Company closed the previously announced disposition to InPlay Oil Corp. ("InPlay") of our operated Pembina (Cardium) assets (the "Pembina Disposition"). Total consideration for the transaction included approximately $211 million of cash (inclusive of interim closing adjustments), approximately 9.1 million common shares of InPlay (updated to reflect InPlay's consolidation of its common shares on a one for six basis effective April 14, 2025 (the "InPlay Share Consolidation)) and a $15 million value associated with acquiring InPlay's 34.6 percent interest in the Willesden Green Cardium Unit #2 property. The transaction includes all the Company's assets in Pembina, with the exception of our non-operated interest in Pembina Cardium Unit #11 which we retain. The transaction has an effective date of December 1, 2024. As part of the transaction, InPlay assumed all assets and liabilities associated with the Pembina assets, including the Company’s decommissioning liabilities.

This transaction has further strengthened our balance sheet, with the cash proceeds from the transaction used to initially pay down outstanding debt which resulted in approximately $30 million drawn on our syndicated credit facility on close. Additionally, in the coming months, we will be considering different monetization options for our InPlay share position which we believe will offer further value to our shareholders.

OBSIDIAN ENERGY FIRST QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 2

Business Strategy

Upon close of the Pembina Disposition, Peace River is now our largest asset where, over the past two years, we have more than doubled our production in the area through a focused development program. With a significant land base of approximately 700 net sections, we expect to continue to grow our Clearwater and Bluesky production through further development and delineation of existing and establishing new fields in the area. We also expect to maintain production in our light oil assets through development and allocate the excess free cash flow back into Peace River to help fund growth. The pace and level of future development will be subject to the macro-economic environment as we look to maintain the Company’s financial strength.

In 2023, we began our return of capital initiative through our share buyback program under our normal course issuer bid ("NCIB"). This program has further enhanced shareholder returns, specifically through a focus on per share growth. Including purchases subsequent to Q1 2025, we have re-purchased and cancelled a total of approximately 13.1 million common shares for total consideration of approximately $113.6 million since the inception of the NCIB in 2023. Purchases under the NCIB are subject to having $65 million of liquidity and otherwise complying with the terms of our current credit facilities. In February 2025, the Company renewed our NCIB for the next 12 months.

The Company continued with our environmental remediation efforts in the first quarter of 2025 with a focus on abandoning and reclaiming inactive fields. In the coming years, the Company will continue to abandon and reclaim inactive fields across our portfolio.

Business Environment

The following table outlines quarterly averages for benchmark prices and Obsidian Energy’s realized prices for the previous eight quarters.

			Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023			Q3 2023			Q2 2023
Benchmark prices
WTI oil (US/bbl)	71.42		$	70.27		$	75.09		$	80.57		$	76.96		$	78.32		$	82.26		$	73.78
Edm mixed sweet par price (CAD/bbl)	95.00			94.39			97.60			105.41			92.21			99.46			107.89			95.12
Western Canada Select (CAD/bbl)	84.04			80.67			83.80			91.82			77.80			76.76			93.07			78.89
NYMEX Henry Hub (US/mmbtu)	3.65			2.79			2.16			1.89			2.24			2.88			2.55			2.10
AECO 5A Index (CAD/mcf)	2.17			1.48			0.69			1.18			2.50			2.30			2.60			2.45
Foreign exchange rate (US/CAD)	1.43			1.40			1.37			1.37			1.35			1.36			1.34			1.34
Benchmark differentials
WTI - Edm Light Sweet (US/bbl)	(4.98	)		(2.42	)		(3.35	)		(3.63	)		(8.65	)		(5.19	)		(1.86	)		(2.96	)
WTI - Western Canadian Select Heavy (US/bbl)	(12.65	)		(12.54	)		(13.51	)		(13.55	)		(19.33	)		(21.88	)		(12.89	)		(15.04	)
Average sales price (1) (2)
Light oil (CAD/bbl)	99.46			96.95			100.09			107.61			94.82			100.38			109.56			96.92
Heavy oil (CAD/bbl)	70.14			67.70			73.73			79.73			60.39			58.53			80.14			61.63
NGLs (CAD/bbl)	53.49			44.27			48.92			48.92			50.43			55.65			49.71			50.45
Total liquids (CAD/bbl)	82.21			78.88			84.04			91.64			79.08			82.85			93.40			82.04
Natural gas (CAD/mcf)	2.18		$	1.53		$	0.86		$	1.33		$	2.38		$	2.63		$	2.65		$	2.56

All values are in US Dollars.

Excludes the impact of realized hedging gains or losses.
Supplementary financial measures. See "Non-GAAP and Other Financial Measures".

OBSIDIAN ENERGY FIRST QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 3

Oil

WTI prices averaged US$71.42 per bbl during Q1 2025. Oil prices started the year higher and averaged approximately US$75 per bbl in January but decreased throughout the quarter with WTI averaging approximately US$68 per bbl in March. Commodity markets were volatile due to concerns over US imposed tariffs and the potential impact it may have on the global economy in addition to the announced output increase from OPEC.

In Q1 2025, WCS differentials remained narrow, averaging US$12.65 per bbl for the quarter. Alternatively, there was weakness in MSW pricing, which resulted in an average differential of US$4.98 for the quarter compared to an MSW differential of US$2.42 for Q4 2024.

The Company currently has the following oil hedging contracts in place on a weighted average basis:

Type		Remaining<br>Term	Price (/bbl)
WTI Swap	3,750	May 2025
WTI Collar	3,500	May 2025	97.29 - 101.79
WCS Differential	8,500	May 2025 - June 2025		)
WCS Differential	7,750	July 2025 - September 2025		)
WCS Differential	6,000	October 2025 - December 2025		)
MSW Differential	1,500	May 2025 - June 2025		)
MSW Differential	500	July 2025 - September 2025		)

All values are in US Dollars.

Natural Gas

In Q1 2025, both NYMEX and AECO prices improved over Q4 2024 however AECO prices remained weak due to inventory levels remaining relatively high throughout the period. The average NYMEX futures price for Q1 2025 was US$3.65 per mmbtu, and in Alberta, AECO 5A prices averaged $2.17 per mcf.

The Company currently has the following natural gas hedging contracts in place on a weighted average basis:

Type	Volume <br>(mcf/d)		Remaining<br>Term	Price (/mcf)
AECO Swap		19,905	May 2025 - October 2025
AECO Collar		1,896	May 2025 - October 2025	2.11 - 2.64

All values are in US Dollars.

OBSIDIAN ENERGY FIRST QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 4

RESULTS OF OPERATIONS

Average Sales Prices (1)

	Three months ended March 31
	2025			2024			% change
Light oil (per bbl)	$	99.46		$	94.82			5
Heavy oil (per bbl)		70.14			60.39			16
NGL (per bbl)		53.49			50.43			6
Total liquids (per bbl)		82.21			79.08			4
Realized risk management loss (per bbl)		(0.10	)		(0.02	)		400
Total liquids, net (per bbl)		82.11			79.06			4
Natural gas (per mcf)		2.18			2.38			(8	)
Realized risk management gain (per mcf)		0.46			0.61			(25	)
Natural gas net (per mcf)		2.64			2.99			(12	)
Weighted average (per boe)		61.11			57.07			7
Realized risk management gain (per boe)		0.78			1.24			(37	)
Weighted average net (per boe)	$	61.89		$	58.31			6

Supplementary financial measures. See "Non-GAAP and Other Financial Measures".

Production

	Three months ended March 31
Daily production	2025		2024		% change
Light oil (bbl/d)		12,727		13,079		(3	)
Heavy oil (bbl/d)		10,887		6,748		61
NGL (bbl/d)		3,072		2,783		10
Natural gas (mmcf/d)		70		70		-
Total production (boe/d)		38,416		34,238		12

In Q1 2025, production levels increased compared to Q1 2024 as the Company progressed on our growth plan which led to higher activity levels, particularly in our Peace River asset. During Q1 2025, the Company had five rigs running in Peace River and one rig running in the Cardium. A total of 31 wells (26.6 net) were drilled and 19 wells (17.9 net) were brought on production. The majority of our wells drilled in Q1 will be brought on production in Q2 2025.

Average production within the Company’s key development areas and within the Company’s Legacy asset area was as follows:

	Three months ended March 31
Daily production (boe/d) (1)	2025		2024		% change
Cardium		24,967		24,058		4
Peace River		11,609		7,287		59
Viking		1,520		2,505		(39	)
Legacy		320		388		(18	)
Total		38,416		34,238		12

Refer to “Supplemental Production Disclosure” for details by product type.

Subsequent to March 31, 2025, the Company closed the disposition of our operated Pembina assets that are located in the Cardium area. Production associated with these assets averaged approximately 11,000 boe/d in Q1 2025.

OBSIDIAN ENERGY FIRST QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 5

Netbacks

	Three months ended March 31
(per boe)	2025			2024
Netback:
Sales price (1) (3)	$	61.11		$	57.07
Risk management gain (2)		0.78			1.24
Royalties		(8.22	)		(7.05	)
Transportation		(4.85	)		(3.95	)
Net operating costs (3)		(15.72	)		(13.91	)
Netback (3)	$	33.10		$	33.40
	(boe/d)			(boe/d)
Production		38,416			34,238

For the three months ended March 31, 2025 includes the impact of commodities purchased from and sold to third parties of $0.3 million (2024 – $0.5 million). See "Production Revenues" below for a reconciliation of "Sales" to "Production revenues".
Realized risk management gains on commodity contracts.
Non-GAAP ratios. See "Non-GAAP and Other Financial Measures".

The Company's netback was relatively unchanged in Q1 2025 compared to Q1 2024 as higher realized prices were offset by higher net operating costs and royalties. Transportation costs were also higher as a result of our increasing Peace River production.

	Three months ended March 31
(millions)	2025			2024
Netback:
Sales (1) (3)	$	211.3		$	177.8
Risk management gain (2)		2.7			3.8
Royalties		(28.4	)		(22.0	)
Transportation		(16.8	)		(12.3	)
Net operating costs (3)		(54.4	)		(43.2	)
Netback (3)	$	114.4		$	104.1

For the three months ended March 31, 2025 includes the impact of commodities purchased from and sold to third parties of $0.3 million (2024 – $0.5 million). See "Production Revenues" below for a reconciliation of "Sales" to "Production revenues".
Realized risk management gains on commodity contracts.
Non-GAAP financial measures. See "Non-GAAP and Other Financial Measures".

Production Revenues

A reconciliation from production revenues to gross revenues is as follows:

	Three months ended March 31
(millions)	2025			2024
Production revenues	$	211.0		$	177.3
Sales of commodities purchased from third parties		2.0			3.8
Less: Commodities purchased from third parties		(1.7	)		(3.3	)
Sales (1)		211.3			177.8
Realized risk management gain (2)		2.7			3.8
Gross revenues (1)	$	214.0		$	181.6

Non-GAAP financial measure. See "Non-GAAP and Other Financial Measures".
Relates to realized risk management gains on commodity contracts.

OBSIDIAN ENERGY FIRST QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 6

The Company's production revenues and gross revenues were higher in Q1 2025 compared to Q1 2024, mainly due to higher production volumes from our active development program and higher realized oil prices.

Change in Gross Revenues (1)

(millions)
Gross revenues – January 1 – March 31, 2024	$	181.6
Increase in liquids production		20.3
Increase in liquids prices		14.5
Decrease in natural gas prices		(1.3	)
Decrease in realized oil risk management gain		(0.2	)
Decrease in realized natural gas risk management gain		(0.9	)
Gross revenues – January 1 – March 31, 2025 (2)	$	214.0

Non-GAAP financial measure. See "Non-GAAP and Other Financial Measures".
Excludes processing fees and other income.

Royalties

	Three months ended March 31
	2025			2024
Royalties (millions)	$	28.4		$	22.0
Average royalty rate (1)		13	%		12	%

Excludes effects of risk management activities and other income.

In Q1 2025, absolute royalties increased from Q1 2024 which was largely attributed to our increased production base. The average royalty rate increased due to higher commodity prices.

Expenses

	Three months ended March 31
(millions)	2025		2024
Net operating (1)	$	54.4	$	43.2
Transportation		16.8		12.3
Financing		12.7		12.0
Share-based compensation	$	2.9	$	9.0

Non-GAAP financial measure. See "Non-GAAP and Other Financial Measures".

Operating

A reconciliation of operating costs to net operating costs is as follows:

	Three months ended March 31
(millions)	2025			2024
Operating costs	$	59.0		$	49.3
Less processing fees		(2.8	)		(3.9	)
Less road use recoveries		(1.8	)		(2.1	)
Less realized power risk management loss		-			(0.1	)
Net operating costs (1)	$	54.4		$	43.2

Non-GAAP financial measure. See “Non-GAAP and Other Financial Measures”.

OBSIDIAN ENERGY FIRST QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 7

On an absolute basis, both operating and net operating costs have increased compared to Q1 2024 mainly due to our higher production base as well as increased trucking costs due to higher than anticipated initial water volumes associated with our larger Peace River drilling program. Additionally, in Q1 2025, repair and maintenance activity and land survey costs required as part of the Pembina disposition contributed to this increase, which was partially offset by lower power costs.

Transportation

The Company continues to utilize multiple sales points in the Peace River area to increase realized prices. New wells drilled in the Peace River area over the past year resulted in higher production and thus higher transportation costs in Q1 2025 compared to Q1 2024.

Financing

Financing expense consists of the following:

	Three months ended March 31
(millions)	2025		2024
Interest	$	7.5	$	6.7
Accretion on decommissioning liability		4.6		4.2
Accretion on office lease provision		-		0.2
Accretion on discount of senior unsecured notes		0.1		0.1
Accretion on lease liabilities		0.1		0.1
Loss on repurchased senior unsecured notes		-		0.1
Deferred financing costs		0.4		0.6
Financing	$	12.7	$	12.0

Obsidian Energy’s debt structure includes short-term borrowings under our syndicated credit facility and term financing through our senior unsecured notes. Interest charges were higher in 2025 compared to 2024 mainly due to higher interest rates and higher debt balances as a result of the Peace River acquisition we completed in Q2 2024 and higher development activity levels as we progressed on our growth plan.

The Company has a reserve-based syndicated credit facility which is subject to a semi-annual borrowing base redetermination (typically completed in May and November of each year). We completed our semi-annual borrowing redetermination early in conjunction with our Pembina asset disposition to InPlay. Upon closing the disposition, the aggregate amount available under the syndicated credit facility is $235.0 million, which was reduced from $300.0 million subsequent to March 31, 2025. At that time, the revolving period and maturity dates under the syndicated credit facility were extended to May 31, 2026 and May 31, 2027, respectively. On April 7, 2025 the Company used the cash proceeds from the Pembina Disposition to reduce the amount outstanding under our syndicated credit facility to approximately $30 million.

At March 31, 2025, the Company had senior unsecured notes outstanding totaling $114.2 million which mature on July 27, 2027. The senior unsecured notes were initially issued at a price of $980 per $1,000 principal amount resulting in aggregate gross proceeds of $125.0 million and at an interest rate of 11.95 percent. The senior unsecured notes are direct senior unsecured obligations of Obsidian Energy ranking equal with all other present and future senior unsecured indebtedness of the Company.

As part of the terms of the senior unsecured notes, the Company is required, in certain circumstances, to make a repurchase offer (the "Repurchase Offer") at a price of $1,030 per $1,000 principal amount to an aggregate amount of $63.8 million (including open market purchases), which has been reduced to $50.4 million based on previous Repurchase Offers and open market purchases. The obligation to make a Repurchase Offer is based on free cash flow for the six months ended June 30 (typically offered in August) and based on free cash flow for the six months ended December 31 (typically offered in March). Minimum available liquidity thresholds and projected leverage ratios under the Company's syndicated credit facilities are also required to be met in order to proceed with a Repurchase Offer. In Q1 2025, the Company made a Repurchase Offer for $3.0 million, however, there was no uptake from note holders.

OBSIDIAN ENERGY FIRST QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 8

Subsequent to March 31, 2025, the Company repurchased $2.0 million of our senior unsecured notes on the open market at a price of $1,027.5 per $1,000 principal amount. We currently have $112.2 million of senior unsecured notes outstanding.

At March 31, 2025, letters of credit totaling $4.3 million were outstanding (December 31, 2024 – $4.4 million) that reduce the amount otherwise available to be drawn on our syndicated credit facility.

Share-Based Compensation

Share-based compensation expense relates to options ("Options") granted under the Company's Stock Option Plan, restricted share units (“RSUs") granted under the Restricted and Performance Share Unit Plan (“RPSU plan”), deferred share units ("DSUs") granted under the Deferred Share Unit Plan (“DSU plan”) and performance share units (“PSUs”) granted under the RPSU plan.

Share-based compensation expense consisted of the following:

	Three months ended March 31
(millions)	2025		2024
DSUs	$	0.3	$	4.4
PSUs		0.5		1.6
NTIP (1)		-		0.9
Liability based incentive plans	$	0.8	$	6.9
RSUs	$	1.7	$	1.7
Options		0.4		0.4
Equity based incentive plans		2.1		2.1
Share-based compensation	$	2.9	$	9.0

Restricted awards granted under the Non-Treasury Incentive Award Plan ("NTIP") were classified as a liability and were settled in cash. There were no outstanding restricted awards under the NTIP at March 31, 2025.

The change in share price at the balance sheet date results in a mark-to-market valuation which is used to calculate the PSU and DSU future obligations. On March 31, 2025, the Company's share price closed at $8.43 per share compared to $8.36 per share on December 31, 2024 and $11.18 per share on March 31, 2024 on the Toronto Stock Exchange.

General and Administrative Expenses ("G&A")

	Three months ended March 31
(millions, except per boe amounts)	2025		2024
Gross	$	10.9	$	10.6
Per boe (1)		3.14		3.41
Net (2)		5.6		5.5
Per boe (1)	$	1.61	$	1.77

Supplementary financial measure. See “Non-GAAP and Other Financial Measures”.
Net G&A includes the impact of overhead recoveries and capitalized G&A.

On an absolute basis, G&A was relatively unchanged in Q1 2025 compared to Q1 2024 as staff levels were relatively consistent year-over-year. The higher production levels resulted in lower per boe G&A metrics in Q1 2025 compared to Q1 2024.

OBSIDIAN ENERGY FIRST QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 9

Depletion, Depreciation and Impairment

	Three months ended March 31
(millions)	2025		2024
Depletion and depreciation (“D&D”)	$	43.2	$	55.0
PP&E Impairment	$	12.1	$	0.9

The Company’s D&D expense decreased in Q1 2025 from Q1 2024 due to the assets associated with the Pembina Disposition being classified as assets held for sale in Q4 2024 and no longer being depleted.

At March 31, 2025, we continued to classify our operated Pembina assets within our Cardium cash generating unit ("CGU") as assets held for sale, which led to the Company updating our assumptions at the quarter-end date. This resulted in the Company recording a $12.0 million non-cash impairment charge as we valued the assets at the anticipated transaction proceeds based on March 31, 2025. In the first quarter of 2025, we recorded a $0.1 million (2024 - $0.9 million) impairment in our Legacy cash generating unit ("CGU") due to decommissioning spending in the area. The Legacy CGU has no recoverable amount, as such changes in our decommissioning liability are expensed each period.

Taxes

	Three months ended March 31
(millions)	2025		2024
Deferred income tax expense	$	5.0	$	4.3

The Company previously recognized a deferred tax asset, as we expect to have sufficient taxable profits in future years in order to fully utilize the remaining deferred tax asset balance. The deferred income tax expense was due to the Company's net income and resultant reduction of our deferred income tax asset.

Net Income

	Three months ended March 31
(millions, except per share amounts)	2025		2024
Net income	$	15.4	$	11.9
Basic per share		0.21		0.15
Diluted per share	$	0.20	$	0.15

Net income was higher in the Q1 2025 period as a result of the Company's higher production revenues due to increased production. This was partially offset by our higher net operating and transportation costs due to our larger production base and expanded operations in Peace River.

OBSIDIAN ENERGY FIRST QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 10

Capital Expenditures

	Three months ended March 31
(millions)	2025		2024
Drilling and completions	$	87.8	$	91.3
Well equipping and facilities		33.8		22.7
Land and geological/geophysical		6.4		-
Corporate		0.4		0.3
Capital expenditures	$	128.4	$	114.3

Capital expenditures in Q1 2025 were higher than Q1 2024 due to the active Q1 2025 development program with five rigs running in Peace River and one rig running in the Cardium. During the first three months of 2025, 19 (17.9 net) wells were brought on production, including operated and non-operated activities, which included 4 (4.0 net) wells in the Cardium and 15 (13.9 net) wells in Peace River.

Drilling

	Three months ended March 31
	2025				2024
(number of wells)	Gross		Net		Gross		Net
Oil		31		27		26		21
Gas		-		-		4		1
Injectors, stratigraphic and service		-		-		6		5
Total		31		27		36		27

The Company drilled 26 (24.4 net) operated wells during Q1 2025. In addition, the Company had non-operated working interests in 5 (2.2 net) wells that were drilled by various partners during the period.

Environmental and Climate Change

The oil and natural gas industry has a number of environmental risks and hazards and is subject to regulation by all levels of government. Environmental legislation includes, but is not limited to, operational controls, site rehabilitation requirements and restrictions on emissions of various substances produced in association with oil and natural gas operations. Compliance with such legislation is expected to require additional expenditures and a failure to comply may result in fines and penalties which could, in the aggregate and under certain assumptions, become material.

Obsidian Energy monitors our operations for environmental impacts and allocates capital to reclamation and other activities to help mitigate the impact on the areas in which the Company operates. The Company follows the Alberta Energy Regulator guidance under Directive 088 where a minimum amount of spending is required to abandon inactive sites.

OBSIDIAN ENERGY FIRST QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 11

Liquidity and Capital Resources

Net Debt

Net debt is the total of long-term debt and working capital deficiency as follows:

	As at
(millions)	March 31, 2025			December 31, 2024
Long-term debt
Syndicated credit facility	$	239.5		$	225.0
Senior unsecured notes		114.2			114.2
Unamortized discount of senior unsecured notes		(1.0	)		(1.1	)
Deferred financing costs		(2.3	)		(2.7	)
Total		350.4			335.4
Working capital deficiency
Cash		(0.3	)		-
Accounts receivable		(86.0	)		(88.0	)
Prepaid expenses and other		(15.2	)		(12.0	)
Bank overdraft		-			0.5
Accounts payable and accrued liabilities		211.0			175.8
Total		109.5			76.3
Net debt (1)	$	459.9		$	411.7

Non-GAAP financial measure. See "Non-GAAP and Other Financial Measures".

Net debt increased compared to December 31, 2024, as a result of higher drawings under our syndicated credit facility and increased working capital deficiency due to our active Q1 2025 development program. On April 7, 2025 the Company closed the Pembina Disposition and used the cash proceeds of approximately $211 million (inclusive of interim closing adjustments) to reduce the amount outstanding under our syndicated credit facility to approximately $30 million.

Liquidity

The Company currently has a reserve-based syndicated credit facility with a borrowing limit of $235.0 million and at March 31, 2025 senior unsecured notes totaling $114.2 million, due in July 2027. For further details on the Company’s debt instruments please refer to the “Financing” section of this MD&A.

The Company actively manages our debt portfolio and considers opportunities to reduce or diversify our debt capital structure. Management contemplates both operating and financial risks and takes action as appropriate to limit the Company’s exposure to certain risks. Management maintains close relationships with the Company’s lenders and agents to monitor credit market developments. These actions and plans aim to increase the likelihood of maintaining the Company’s financial flexibility and an appropriate capital program, supporting the Company’s ongoing operations and ability to execute longer-term business strategies.

OBSIDIAN ENERGY FIRST QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 12

Financial Instruments

Obsidian Energy had the following financial instruments outstanding as at March 31, 2025. Fair values are determined using external counterparty information, which is compared to observable market data. The Company limits our credit risk by executing counterparty risk procedures which include transacting only with institutions within our syndicated credit facility or companies with high credit ratings, and by obtaining financial security in certain circumstances.

	Notional<br>Volume	Remaining<br>Term	Price
Oil
WTI Swap	5,750 bbl/d	April 2025	98.78/bbl	(0.6	)
WTI Swap	1,500 bbl/d	May 2025	100.20/bbl	(0.1	)
WTI Collar	3,500 bbl/d	April 2025	95.00/bbl - 99.00/bbl	(0.4	)
WTI Collar	3,000 bbl/d	May 2025	97.00/bbl - 101.50/bbl	(0.2	)
WCS Differential	6,000 bbl/d	April 2025 - December 2025	(19.30)/bbl	(4.0	)
WCS Differential	2,500 bbl/d	April 2025 - June 2025	(19.60)/bbl	(1.0	)
WCS Differential	1,750 bbl/d	July 2025 - September 2025	(17.21)/bbl	(0.2	)
MSW Differential	1,500 bbl/d	April 2025 - June 2025	(7.90)/bbl	(0.4	)
MSW Differential	500 bbl/d	July 2025 - September 2025	(6.59)/bbl	(0.1	)
AECO
AECO Swap	17,062 mcf/d	April 2025 - October 2025	2.24/mcf	(1.0	)
AECO Collar	1,896 mcf/d	April 2025 - October 2025	2.11/mcf - 2.64/mcf	(0.1	)
Total				(8.1	)

All values are in US Dollars.

Refer to the Business Environment section above for a full list of hedges currently outstanding including contracts that were entered into subsequent to March 31, 2025.

Based on commodity prices and contracts in place at March 31, 2025, the Company notes the following sensitivities:

a $1.00 change in the price per barrel of liquids would change pre-tax unrealized risk management by $2.6 million; and
a $0.10 change in the price per mcf of natural gas would change pre-tax unrealized risk management by $0.4 million.

OBSIDIAN ENERGY FIRST QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 13

The components of risk management within Income on the Consolidated Statements of Income are as follows:

	Three months ended March 31
(millions)	2025			2024
Realized
Settlement of oil contracts loss	$	(0.2	)	$	-
Settlement of natural gas contracts gain		2.9			3.8
Total realized risk management gain	$	2.7		$	3.8
Unrealized
Oil contracts loss	$	(10.3	)	$	(0.3	)
Natural gas contracts loss		(4.9	)		(4.0	)
Total unrealized risk management loss		(15.2	)		(4.3	)
Risk management loss	$	(12.5	)	$	(0.5	)

Sensitivity Analysis

Estimated sensitivities to selected key assumptions on funds flow from operations for the 12 months subsequent to the date of this MD&A, including risk management contracts entered into to date, are based on forecasted results. The table below includes the impact of the Pembina disposition.

	Impact on funds flow from operations (1)
Change of:	Change		millions	/share
WTI - Price per barrel of liquids	WTI US1.00
WCS - Price per barrel of liquids	WCS US1.00
Liquids production	1,000 bbl/day
Price per mcf of natural gas	AECO 0.10
Natural gas production	1 mmcf/day
Effective interest rate		%
Exchange rate ($US per $CAD)

All values are in US Dollars.

Non-GAAP financial measure. or non-GAAP ratio. See “Non-GAAP and Other Financial Measures”.

Contractual Obligations and Commitments

As at March 31, 2025, Obsidian Energy was committed to certain payments over the next five calendar years and thereafter as follows:

	2025		2026		2027		2028		2029		Thereafter		Total
Long-term debt (1)	$	-	$	239.5	$	114.2	$	-	$	-	$	-	$	353.7
Transportation		15.0		17.7		14.1		12.9		13.0		8.0		80.7
Interest obligations		19.4		20.5		13.7		-		-		-		53.6
Lease liability		1.7		1.8		1.3		0.6		0.1		4.6		10.1
Decommissioning liability (2)		13.4		18.1		15.6		14.4		11.8		38.8		112.1
Total	$	49.5	$	297.6	$	158.9	$	27.9	$	24.9	$	51.4	$	610.2

The 2026 figure includes our syndicated credit facility which had a term-out date of May 2026 at March 31, 2025. Subsequent to March 31, 2025, the Company completed our semi-annual borrowing base redetermination and the term-out date was extended to May 2027. The 2027 figure includes our senior unsecured notes due in July 2027. Refer to the Financing section above for further details. Historically, the Company has successfully renewed our syndicated credit facility. Post closing the Pembina Disposition on April 7, 2025, cash proceeds from the sale were used to reduce the amount outstanding on the syndicated credit facility to approximately $30 million.
These amounts represent the inflated, discounted future reclamation and abandonment costs that are expected to be incurred over the life of the Company’s properties.

OBSIDIAN ENERGY FIRST QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 14

At March 31, 2025, the Company had an aggregate of $114.2 million in senior unsecured notes maturing in July 2027 and the revolving period of our syndicated credit facility was May 31, 2025, with a term out period to May 31, 2026. Subsequent to March 31, 2025, the Company completed our semi-annual borrowing base redetermination which resulted in the revolving period and maturity dates under the syndicated credit facility being extended to May 31, 2026 and May 31, 2027, respectively. In the future, if the Company is unsuccessful in renewing or replacing the syndicated credit facility or obtaining alternate funding for some or all of the maturing amounts of the senior unsecured notes, it is possible that we could be required to seek other sources of financing, including other forms of debt or equity arrangements if available. Please see the Financing section of this MD&A for further details regarding our outstanding debt instruments.

The Company is involved in various litigation and claims in the normal course of business and records provisions for claims as required.

Equity Instruments

Common shares issued:
As at March 31, 2025	72,873,253
Issuance under stock option and restricted and performance share unit plans	1,874
Repurchase and cancellation of common shares	(2,356,230	)
As at May 6, 2025	70,518,897
Options outstanding:
As at March 31, 2025	2,637,314
Granted	36,400
Forfeited	(2,430	)
As at May 6, 2025	2,671,284
RSUs outstanding:
As at March 31, 2025	1,875,387
Granted	18,200
Vested	(5,240	)
Forfeited	(75,016	)
As at May 6, 2025	1,813,331
OBSIDIAN ENERGY FIRST QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 15
---	---

Supplemental Production Disclosure

Outlined below is production by product type for each area and in total for the three months ended March 31, 2025 and 2024.

	Three months ended March 31
Daily production (boe/d)	2025		2024
Cardium
Light oil (bbl/d)		11,835		11,285
Heavy oil (bbl/d)		75		47
NGLs (bbl/d)		2,991		2,684
Natural gas (mmcf/d)		60		60
Total production (boe/d)		24,967		24,058
Peace River
Light oil (bbl/d)		-		-
Heavy oil (bbl/d)		10,690		6,565
NGLs (bbl/d)		15		14
Natural gas (mmcf/d)		5		4
Total production (boe/d)		11,609		7,287
Viking
Light oil (bbl/d)		824		1,715
Heavy oil (bbl/d)		90		94
NGLs (bbl/d)		44		60
Natural gas (mmcf/d)		3		4
Total production (boe/d)		1,520		2,505
Legacy
Light oil (bbl/d)		68		79
Heavy oil (bbl/d)		32		42
NGLs (bbl/d)		22		25
Natural gas (mmcf/d)		2		2
Total production (boe/d)		320		388
Total
Light oil (bbl/d)		12,727		13,079
Heavy oil (bbl/d)		10,887		6,748
NGLs (bbl/d)		3,072		2,783
Natural gas (mmcf/d)		70		70
Total production (boe/d)		38,416		34,238
OBSIDIAN ENERGY FIRST QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 16
---	---

Reconciliation of Cash flow from Operating Activities to Funds flow from Operations

	Mar. 31			Dec. 31			Sep. 30			Jun. 30			Mar. 31			Dec. 31			Sep. 30			Jun. 30
Three months ended	2025			2024			2024			2024			2024			2023			2023			2023
Cash flow from operating activities	$	96.7		$	115.0		$	110.3		$	77.9		$	58.7		$	117.7		$	95.3		$	67.1
Change in non-cash working capital		(5.8	)		(13.5	)		6.1			29.7			13.4			(30.3	)		(3.6	)		13.7
Decommissioning expenditures		6.6			3.5			6.3			4.0			10.1			7.7			5.3			4.9
Onerous office lease settlements		0.7			2.3			2.2			2.2			2.3			2.3			2.2			2.2
Settlement of restricted share units		-			-			-			-			-			0.1			0.1			-
Deferred financing costs		(0.4	)		(0.5	)		(0.6	)		(0.6	)		(0.6	)		(0.6	)		(0.6	)		(0.6	)
Restructuring		0.1			-			-			-			-			-			-			-
Transaction costs		2.2			-			-			1.4			-			-			-			-
Other expenses		-			0.9			0.4			0.6			0.5			0.1			0.2			0.1
Funds flow from operations	$	100.1		$	107.7		$	124.7		$	115.2		$	84.4		$	97.0		$	98.9		$	87.4

Changes in Internal Control Over Financial Reporting (“ICFR”)

Obsidian Energy’s senior management has evaluated whether there were any changes in the Company's ICFR that occurred during the period beginning on January 1, 2025 and ending on March 31, 2025 that have materially affected, or are reasonably likely to materially affect, the Company's ICFR. No changes to the Company’s ICFR were made during the quarter.

Off-Balance-Sheet Financing

Obsidian Energy has off-balance-sheet financing arrangements consisting of operating leases. The operating lease payments are summarized in the Contractual Obligations and Commitments section.

Non-GAAP and Other Financial Measures

Throughout this MD&A and in other materials disclosed by the Company, we employ certain measures to analyze financial performance, financial position, and cash flow. These non-GAAP and other financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures provided by other issuers. The non-GAAP and other financial measures should not be considered to be more meaningful than GAAP measures which are determined in accordance with IFRS, such as net income (loss) and cash flow from operating activities, as indicators of our performance.

Non-GAAP Financial Measures

“Free cash flow” is funds flow from operations less both capital and decommissioning expenditures and the Company believes it is a useful measure to determine and indicate the funding available to Obsidian Energy for investing and financing activities, including the repayment of debt, reallocation to existing areas of operation, deployment into new ventures and return of capital to shareholders. See “Cash flow from Operating Activities, Funds Flow from Operations and Free Cash Flow” above for a reconciliation of free cash flow to cash flow from operating activities, being our nearest measure prescribed by IFRS.

“Funds flow from operations” is cash flow from operating activities before changes in non-cash working capital, decommissioning expenditures, onerous office lease settlements, settlement of RSUs, the effects of financing related transactions from foreign exchange contracts and debt repayments, restructuring, transaction costs and certain other expenses and is representative of cash related to continuing operations. Funds flow from operations is used to assess the Company’s ability to fund our planned capital programs. See “Cash flow from Operating Activities, Funds Flow from Operations and Free Cash Flow” and "Reconciliation of Cash flow from operating activities to Funds flow from operations" above for reconciliations of funds flow from operations to cash flow from operating activities, being our nearest measure prescribed by IFRS.

“Gross revenues” are production revenues including realized risk management gains and losses on commodity contracts and adjusted for commodities purchased from third parties and sales of commodities purchased from third parties and is used to assess the cash realizations on commodity sales. See “Results of Operations – Production Revenues” above for a reconciliation of gross revenues to production revenues, being our nearest measure prescribed by IFRS.

OBSIDIAN ENERGY FIRST QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 17

"Sales” are production revenues plus sales of commodities purchased from third parties less commodities purchased from third parties and is used to assess the cash realizations on commodity sales before realized risk management gains and losses. See “Results of Operations – Production Revenues” above for a reconciliation of gross revenues and sales to production revenues, being our nearest measure prescribed by IFRS.

“Net debt” is the total of long-term debt and working capital deficiency and is used by the Company to assess our liquidity. See “Liquidity and Capital Resources – Net Debt” above for a reconciliation of net debt to long-term debt, being our nearest measure prescribed by IFRS.

“Net operating costs” are calculated by deducting processing income, road use recoveries and realized gains and losses on power risk management contracts from operating costs and is used to assess the Company’s cost position. Processing fees are primarily generated by processing third party volumes at the Company’s facilities. In situations where the Company has excess capacity at a facility, it may agree with third parties to process their volumes to reduce the cost of operating/owning the facility. Road use recoveries are a cost recovery for the Company as we operate and maintain roads that are also used by third parties. Realized gains and losses on power risk management contracts occur upon settlement of our contracts. See “Results of Operations – Expenses – Operating” above for a reconciliation of net operating costs to operating costs, being our nearest measure prescribed by IFRS.

“Netback” is production revenues plus sales of commodities purchased from third parties less commodities purchased from third parties (sales), less royalties, net operating costs, transportation expenses and realized risk management gains and losses, and is used in capital allocation decisions and to economically rank projects. See "Results of Operations – Netbacks" above for a reconciliation of netbacks to sales and "Results of Operations – Production Revenues" above for a reconciliation of sales to production revenues, being our nearest measure prescribed by IFRS.

Non-GAAP Ratios

“Funds flow from operations – basic per share” is comprised of funds flow from operations divided by basic weighted average common shares outstanding. Funds flow from operations is a non-GAAP financial measure. See “Cash flow from Operating Activities, Funds Flow from Operations and Free Cash Flow” and “Reconciliation of Cash flow from operating activities to Funds flow from operations” above.

“Funds flow from operations – diluted per share” is comprised of funds flow from operations divided by diluted weighted average common shares outstanding. Funds flow from operations is a non-GAAP financial measure. See “Cash flow from Operating Activities, Funds Flow from Operations and Free Cash Flow” and “Reconciliation of Cash flow from operating activities to Funds flow from operations” above.

“Net operating costs per bbl”, “Net operating costs per mcf” and “Net operating costs per boe” are net operating costs divided by weighted average daily production on a per bbl, per mcf or per boe basis, as applicable. Net operating costs is a non-GAAP financial measure. See “Results of Operations – Expenses – Operating" above.

“Netback per bbl”, “Netback per mcf” and “Netback per boe” are netbacks divided by weighted average daily production on a per bbl, per mcf or per boe basis, as applicable. Management believes that netback per boe is a key industry performance measure of operational efficiency and provides investors with information that is also commonly presented by other oil and natural gas producers. Netback is a non-GAAP financial measure. See “Results of Operations – Netbacks” above.

"Sales per boe" is sales divided by weighted average daily production on a per boe basis. Sales is a non-GAAP financial measure. See “Results of Operations – Production Revenues" above.

Supplementary Financial Measures

Average sales prices for light oil, heavy oil, NGLs, total liquids and natural gas are supplementary financial measures calculated by dividing each of these components of production revenues by their respective production volumes for the periods.

OBSIDIAN ENERGY FIRST QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 18

“Cash flow from operating activities – basic per share” is comprised of cash flow from operating activities, as determined in accordance with IFRS, divided by basic weighted average common shares outstanding.

“Cash flow from operating activities – diluted per share" is comprised of cash flow from operating activities, as determined in accordance with IFRS, divided by diluted weighted average common shares outstanding.

"G&A gross – per boe" is comprised of general and administrative expenses on a gross basis, as determined in accordance with IFRS, divided by boe for the period.

"G&A net – per boe" is comprised of general and administrative expenses on a net basis, as determined in accordance with IFRS, divided by boe for the period.

Oil and Natural Gas Information

Barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of oil as compared to natural gas is significantly different from the energy equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is misleading as an indication of value.

Abbreviations

Oil		Natural Gas
bbl	barrel or barrels	mcf	thousand cubic feet
bbl/d	barrels per day	mcf/d	thousand cubic feet per day
boe	barrel of oil equivalent	mmcf	million cubic feet
boe/d	barrels of oil equivalent per day	mmcf/d	million cubic feet per day
MSW	Mixed Sweet Blend	mmbtu	Million British thermal unit
WTI	West Texas Intermediate	AECO	Alberta benchmark price for natural gas
WCS	Western Canadian Select	NGL	natural gas liquids
		LNG	liquefied natural gas
		NYMEX	New York Mercantile Exchange price for natural gas

References to Q1, Q2, Q3 and Q4 are to the three-month periods ended March 31, June 30, September 30 and December 31, respectively.

Forward-Looking Statements

Certain statements contained in this document constitute forward-looking statements or information (collectively "forward-looking statements") within the meaning of the "safe harbour" provisions of applicable securities legislation. In particular, this document contains forward-looking statements pertaining to, without limitation, the following: the expected development and production increase of our Peace River assets; the continued development of both the Bluesky and Clearwater heavy oil formations; the expectation that our Willesden Green and Viking light oil assets will continue to generate stable production and free cash flow to help fund growth in our Peace River assets; monetization options for our InPlay Share position; our expectations for the NCIB in 2025; potential US imposed tariffs and the anticipated impact on the global economy and commodity markets; increased output from OPEC and the expected impacts on commodity prices; our environmental remediation efforts, including anticipated spending in 2025 and our continued focus on abandoning and reclaiming inactive fields across our portfolio; our hedges; our intention to use multiple sales points in the Peace River area and the anticipated benefits in connection therewith; our expectations in connection with taxable profits and the Company's ability to utilize its remaining deferred tax asset balance; the terms and conditions under our syndicated credit facility and senior unsecured notes and our expectations if the Company is unsuccessful in renewing or replacing them in the future; our expectations in connection with compliance with environmental legislation; how we plan to manage our debt portfolio; all information disclosed under "Sensitivity Analysis"; our future payment obligations as disclosed under "Contractual Obligations and Commitments"; that management contemplates both operating and financial risks and takes action as appropriate to limit the Company’s exposure to certain risks; and that management maintains close relationships

OBSIDIAN ENERGY FIRST QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 19

with the Company's lenders and agents to monitor credit market developments, and these actions and plans aim to increase the likelihood of maintaining the Company's financial flexibility and capital program and the anticipated benefits in connection therewith.

OBSIDIAN ENERGY FIRST QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 20

that tariffs that are currently suspended are reactivated, the rate or scope of tariffs are increased, or new tariffs are imposed, 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 or threatened to be imposed by the U.S. on other countries and retaliatory tariffs imposed or threatened to be imposed by other countries on the U.S., will trigger a broader global trade war which 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, including by decreasing demand for (and the price of) oil and natural gas, disrupting supply chains, increasing costs, causing volatility in global financial markets, and limiting access to financing; the possibility that we change our budgets (including our capital expenditure budgets) in response to internal and external factors, including those described herein; the possibility that the Company will not be able to continue to successfully execute our business plans and strategies in part or in full, and the possibility that some or all of the benefits that the Company anticipates will accrue to our Company and our stakeholders as a result of the successful execution of such plans and strategies do not materialize (such as our inability to return capital to shareholders and/or reduce debt levels to the extent anticipated or at all); the possibility that the Company ceases to qualify for, or does not qualify for, one or more existing or new government assistance programs, that the impact of such programs falls below our expectations, that the benefits under one or more of such programs is decreased, or that one or more of such programs is discontinued; the impact on energy demand and commodity prices of regional and/or global health related events and the responses of governments and the public thereto, including the risk that the amount of energy demand destruction and/or the length of the decreased demand exceeds our expectations; the risk that there is another significant decrease in the valuation of oil and natural gas companies and their securities and in confidence in the oil and natural gas industry generally, whether caused by regional and/or global health related events, the worldwide transition towards less reliance on fossil fuels and/or other factors; the risk that the financial capacity of the Company's contractual counterparties is adversely affected and potentially their ability to perform their contractual obligations; the possibility that the revolving period and/or term out period of our credit facility and the maturity date of our senior unsecured notes is not extended (if necessary), that the borrowing base under our credit facility is reduced, that the Company is unable to renew or refinance our credit facilities on acceptable terms or at all and/or finance the repayment of our senior unsecured notes when they mature on acceptable terms or at all and/or obtain new debt and/or equity financing to replace our credit facilities and/or senior unsecured notes or to fund other activities; the possibility that we are unable to complete one or more Repurchase Offers when otherwise required to do so; the possibility that we are forced to shut-in production, whether due to commodity prices decreasing, extreme weather events such as wild fires, inability to access our properties due to blockades or other activism, or other factors; the risk that OPEC and other nations fail to agree on and/or adhere to production quotas from time to time that are sufficient to balance supply and demand fundamentals for oil; general economic and political conditions in Canada, the U.S. and globally, and in particular, the effect that those conditions have on commodity prices and our access to capital; industry conditions, including fluctuations in the price of oil, natural gas liquids and natural gas, price differentials for oil and natural gas produced in Canada as compared to other markets, and transportation restrictions, including pipeline and railway capacity constraints; fluctuations in foreign exchange, including the impact of the Canadian/U.S. dollar exchange rate on our revenues and expenses; fluctuations in interest rates, including the effects of interest rates on our borrowing costs and on economic activity, and including the risk that elevated interest rates cause or contribute to the onset of a recession; the risk that our costs increase due to inflation, supply chain disruptions, scarcity of labour and/or other factors, adversely affecting our profitability; unanticipated operating events or environmental events that can reduce production or cause production to be shut-in or delayed (including extreme cold during winter months, wild fires, flooding and droughts (which could limit our access to the water we require for our operations)); the risk that wars and other armed conflicts adversely affect world economies and the demand for oil and natural gas, including the ongoing war between Russian and Ukraine and/or hostilities in the Middle East; the possibility that fuel conservation measures, alternative fuel requirements, increasing consumer demand for alternatives to hydrocarbons, government mandates requiring the sale of electric vehicles and/or electrification of the power grid, and technological advances in fuel economy and renewable energy generation systems could permanently reduce the demand for oil and natural gas and/or permanently impair the Company's ability to obtain financing and/or insurance on acceptable terms or at all, and the possibility that some or all of these risks are heightened as a result of the response of governments, financial institutions and consumers to a regional and/or global health related event and/or the influence of public opinion and/or special interest groups; and the other factors described under "Risk Factors" in our Annual Information Form and described in our public filings, available in Canada at www.sedarplus.caand in the United States at www.sec.gov. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

OBSIDIAN ENERGY FIRST QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 21

The forward-looking statements contained in this document speak only as of the date of this document. Except as expressly required by applicable securities laws, the Company does not undertake any obligation to publicly update any forward-looking statements. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

Additional Information

Additional information relating to Obsidian Energy, including Obsidian Energy’s Annual Information Form, is available on the Company’s website at www.obsidianenergy.com, on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov.

OBSIDIAN ENERGY FIRST QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 22

EX-99.3

Exhibit 99.3

Obsidian Energy Ltd.

Consolidated Balance Sheets

		As at
(CAD millions, unaudited)	Note	March 31, 2025			December 31, 2024
Assets
Current
Cash		$	0.3		$	-
Accounts receivable			86.0			88.0
Risk management	8		-			8.4
Prepaid expenses and other			15.2			12.0
Assets held for sale	4		389.2			383.7
			490.7			492.1
Non-current
Property, plant and equipment	3		1,414.5			1,349.2
Deferred income tax	12		268.3			273.3
			1,682.8			1,622.5
Total assets		$	2,173.5		$	2,114.6
Liabilities and Shareholders’ Equity
Current
Bank overdraft		$	-		$	0.5
Accounts payable and accrued liabilities			211.0			175.8
Current portion of long-term debt	5		-			3.0
Current portion of lease liabilities	6		2.3			2.1
Current portion of provisions	7		19.3			20.4
Risk management	8		8.1			1.3
Liabilities related to assets held for sale	4		73.1			72.2
			313.8			275.3
Non-current
Long-term debt	5		350.4			332.4
Lease liabilities	6		4.3			4.5
Provisions	7		92.8			96.0
Other non-current liabilities			0.4			0.6
			761.7			708.8
Shareholders’ equity
Shareholders’ capital	10		2,127.6			2,135.2
Other reserves			106.8			108.6
Deficit			(822.6	)		(838.0	)
			1,411.8			1,405.8
Total liabilities and shareholders’ equity		$	2,173.5		$	2,114.6

Subsequent events (Note 4, 5, 8, 10 and 14)

Commitments and contingencies (Note 13)

See accompanying notes to the unaudited interim consolidated financial statements.

OBSIDIAN ENERGY FIRST QUARTER 2025	INTERIM CONSOLIDATED FINANCIAL STATEMENTS 1

Obsidian Energy Ltd.

Consolidated Statements of Income

		Three months ended<br>March 31
(CAD millions, except per share amounts, unaudited)	Note	2025			2024
Production revenues	9	$	211.0		$	177.3
Processing fees	9		2.8			3.9
Royalties			(28.4	)		(22.0	)
Sales of commodities purchased from third parties			2.0			3.8
			187.4			163.0
Other income	9		1.8			2.1
Risk management loss	8		(12.5	)		(0.5	)
			176.7			164.6
Expenses
Operating			59.0			49.3
Transportation			16.8			12.3
Commodities purchased from third parties			1.7			3.3
General and administrative			5.6			5.5
Share-based compensation	11		2.9			9.0
Depletion, depreciation and impairment	3		55.3			55.9
Financing	5		12.7			12.0
Risk management loss	8		-			0.6
Restructuring			0.1			-
Transaction costs	4		2.2			-
Other			-			0.5
			156.3			148.4
Income before taxes			20.4			16.2
Deferred income tax	12		5.0			4.3
Net and comprehensive income		$	15.4		$	11.9
Net income per share
Basic		$	0.21		$	0.15
Diluted		$	0.20		$	0.15
Weighted average shares outstanding (millions)
Basic	10		73.5			77.3
Diluted	10		76.4			80.3

See accompanying notes to the unaudited interim consolidated financial statements.

OBSIDIAN ENERGY FIRST QUARTER 2025	INTERIM CONSOLIDATED FINANCIAL STATEMENTS 2

Obsidian Energy Ltd.

Consolidated Statements of Cash Flows

		Three months ended<br>March 31
(CAD millions, unaudited)	Note	2025			2024
Operating activities
Net income		$	15.4		$	11.9
Depletion, depreciation and impairment	3		55.3			55.9
Financing	5		5.2			5.3
Share-based compensation	11		2.1			2.1
Unrealized risk management loss	8		15.2			5.0
Deferred income tax	12		5.0			4.3
Decommissioning expenditures	7		(6.6	)		(10.1	)
Onerous office lease settlements			(0.7	)		(2.3	)
Change in non-cash working capital			5.8			(13.4	)
			96.7			58.7
Investing activities
Capital expenditures	3		(128.4	)		(114.3	)
Change in non-cash working capital			30.7			11.2
			(97.7	)		(103.1	)
Financing activities
Increase in long-term debt	5		14.5			60.0
Repayment of senior unsecured notes	5		-			(3.2	)
Lease liabilities settlements	6		(0.6	)		(0.5	)
Exercised compensation plans			(1.8	)		(1.6	)
Repurchase of common shares	10		(9.6	)		(10.5	)
Tax paid on repurchase of common shares			(0.7	)		-
			1.8			44.2
Change in cash and cash equivalents			0.8			(0.2	)
Cash and cash equivalents (overdraft), beginning of period			(0.5	)		0.5
Cash and cash equivalents, end of period		$	0.3		$	0.3
Supplementary information
Cash interest paid		$	11.0		$	10.2

See accompanying notes to the unaudited interim consolidated financial statements.

OBSIDIAN ENERGY FIRST QUARTER 2025	INTERIM CONSOLIDATED FINANCIAL STATEMENTS 3

Obsidian Energy Ltd.

Statements of Changes in Shareholders’ Equity

(CAD millions, unaudited)	Note	Shareholders’ Capital			Other <br>Reserves			Deficit			Total
Balance at January 1, 2025		$	2,135.2		$	108.6		$	(838.0	)	$	1,405.8
Net and comprehensive income			-			-			15.4			15.4
Share-based compensation	11		-			2.1			-			2.1
Issued on exercise of equity compensation plans			2.1			(3.9	)		-			(1.8	)
Repurchase of common shares for cancellation	10		(9.6	)		-			-			(9.6	)
Tax on repurchases of common shares	10		(0.1	)		-			-			(0.1	)
Balance at March 31, 2025		$	2,127.6		$	106.8		$	(822.6	)	$	1,411.8
(CAD millions, unaudited)	Note	Shareholders’ Capital			Other <br>Reserves			Deficit			Total
---	---	---	---	---	---	---	---	---	---	---	---	---	---
Balance at January 1, 2024		$	2,175.1		$	104.1		$	(635.4	)	$	1,643.8
Net and comprehensive income			-			-			11.9			11.9
Share-based compensation	11		-			2.1			-			2.1
Issued on exercise of equity compensation plans	10		1.7			(3.3	)		-			(1.6	)
Repurchase of common shares for cancellation	10		(10.5	)		-			-			(10.5	)
Balance at March 31, 2024		$	2,166.3		$	102.9		$	(623.5	)	$	1,645.7

See accompanying notes to the unaudited interim consolidated financial statements.

OBSIDIAN ENERGY FIRST QUARTER 2025	INTERIM CONSOLIDATED FINANCIAL STATEMENTS 4

Notes to the Unaudited Interim Consolidated Financial Statements

(All tabular amounts are in CAD millions except numbers of common shares, per share amounts, percentages and various figures in Note 8)

Structure of Obsidian Energy

Obsidian Energy Ltd. (“Obsidian Energy”, the “Company”, “we”, “us” or “our”) is an exploration and production company and is governed by the laws of the Province of Alberta, Canada. The Company's registered office is located at Suite 200, 207 - 9th Avenue S.W. Calgary, Alberta, Canada T2P 1K3. The Company operates in one segment, to explore for, develop and hold interests in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin directly and through investments in securities of subsidiaries holding such interests. Obsidian Energy’s portfolio of assets is managed at an enterprise level, rather than by separate operating segments or business units. The Company assesses our financial performance at the enterprise level and resource allocation decisions are made on a project basis across our portfolio of assets, without regard to the geographic location of projects. Obsidian Energy owns the petroleum and natural gas assets or 100 percent of the equity, directly or indirectly, of the entities that carry on the remainder of the oil and natural gas business of Obsidian Energy.

Basis of presentation and statement of compliance

a) Basis of Presentation

The unaudited condensed interim consolidated financial statements ("interim consolidated financial statements") include the accounts of Obsidian Energy and our wholly owned subsidiaries. Results from acquired properties are included in Obsidian Energy’s reported results subsequent to the closing date and results from properties sold are included until the closing date.

All intercompany balances, transactions, income and expenses are eliminated on consolidation.

b) Statement of Compliance

These interim consolidated financial statements are prepared in compliance with IAS 34 “Interim Financial Reporting” and accordingly do not contain all of the disclosures included in Obsidian Energy’s annual audited consolidated financial statements. These financial statements should be read in conjunction with Obsidian Energy’s audited annual consolidated financial statements as at and for the year ended December 31, 2024. Additionally, these interim consolidated financial statements were prepared using the same accounting policies as in the annual consolidated financial statements as at and for the year ended December 31, 2024.

All tabular amounts are in millions of Canadian dollars, except numbers of common shares, per share amounts, percentages and other figures as noted.

These interim consolidated financial statements were approved for issuance by the Board of Directors on May 6, 2025.

OBSIDIAN ENERGY FIRST QUARTER 2025	NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS 5

Property, plant and equipment ("PP&E")

Oil and Gas assets/ Facilities, Corporate assets

Cost	Three months ended<br>March 31, 2025			Year ended<br>December 31, 2024
Balance, beginning of period	$	8,417.0		$	11,223.8
Capital expenditures (1)		108.8			343.1
Property acquisitions		-			84.9
Property dispositions		-			(1.5	)
Transfer to assets held for sale		-			(3,256.0	)
Net decommissioning changes		(0.7	)		22.7
Balance, end of period	$	8,525.1		$	8,417.0

Capital expenditures totaled $128.4 million including the $19.6 million associated with the Pembina assets classified as held for sale.

Accumulated depletion and depreciation	Three months ended<br>March 31, 2025		Year ended<br>December 31, 2024
Balance, beginning of period	$	7,073.2	$	9,287.0
Depletion and depreciation		42.8		245.3
Impairment		0.1		415.3
Transfer to assets held for sale		-		(2,874.4	)
Balance, end of period	$	7,116.1	$	7,073.2
			As at
---	---	---	---	---
Net book value	March 31, 2025		December 31, 2024
Total	$	1,409.0	$	1,343.8

Right-of-use assets

The following table includes a break-down of the categories for right-of-use assets.

Cost	Three months ended<br>March 31, 2025		Year ended<br>December 31, 2024
Balance, beginning of period	$	14.8	$	14.8
Additions		0.5		-
Balance, end of period	$	15.3	$	14.8
Accumulated amortization	Three months ended<br>March 31, 2025		Year ended<br>December 31, 2024
---	---	---	---	---
Balance, beginning of period	$	9.4	$	7.6
Amortization		0.4		1.8
Balance, end of period	$	9.8	$	9.4
			As at
---	---	---	---	---
Net book value	March 31, 2025		December 31, 2024
Total	$	5.5	$	5.4

Total PP&E

Total PP&E including Oil and Gas assets/Facilities, Corporate assets and Right-of-use assets is as follows:

			As at
PP&E	March 31, 2025		December 31, 2024
Oil and Gas assets/Facilities, Corporate assets	$	1,409.0	$	1,343.8
Right-of-use assets		5.5		5.4
Total	$	1,414.5	$	1,349.2
OBSIDIAN ENERGY FIRST QUARTER 2025	NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS 6
---	---

At March 31, 2025, the Company completed an assessment to determine if indicators of impairment or an impairment reversal were present. No indicators were noted for our Cardium, Peace River and Viking cash generating units ("CGUs").

During the first quarter of 2025, we recorded a $0.1 million impairment (2024 - $0.9 million) in our Legacy CGU due to decommissioning spending in the area. The Legacy CGU has no recoverable amount, as such changes in our decommissioning liability are expensed each period.

Assets and liabilities held for sale

Assets and liabilities classified as held for sale consisted of the following:

			As at
	March 31, 2025		December 31, 2024
Assets held for sale
Prepaid expenses and other	$	-	$	2.1
Property, plant and equipment		389.2		381.6
	$	389.2	$	383.7
Liabilities related to assets held for sale
Current portion of decommissioning liability	$	5.5	$	5.8
Non-current portion of decommissioning liability		67.6		66.4
	$	73.1	$	72.2

The Company has classified our operated Pembina assets located in our Cardium CGU as assets held for sale. On February 19, 2025, the Company announced that we entered into a definitive asset purchase and sale agreement to dispose of these assets and subsequent to the end of the first quarter on April 7, 2025, the Company announced that we had closed the disposition.

Total consideration for the transaction included approximately $211 million of cash (inclusive of interim closing adjustments), approximately 9.1 million common shares of InPlay Oil Corp. ("InPlay") (updated to reflect InPlay's consolidation of its common shares on a one for six basis effective April 14, 2025 (the "InPlay Share Consolidation)) and a $15 million value associated with acquiring InPlay's 34.6 percent interest in the Willesden Green Cardium Unit #2 property. On March 31, 2025, the value associated with the share consideration received from InPlay was updated to the closing InPlay share price on that day of $9.66 per share (updated for the InPlay Share Consolidation). In the second quarter of 2025, that value will be updated to the InPlay share price on the transaction close date of April 7, 2025 which was $8.34 per share.

On March 31, 2025, these assets were recorded at the lesser of fair value less costs to sell and their carrying amount, resulting in a non-cash, before tax, impairment loss of $12.0 million. The impairment expense was recorded as additional depletion, depreciation, and impairment on the Consolidated Statements of Income.

Long-term debt

			As at
			December 31, 2024
Syndicated credit facility	239.5		$	225.0
Senior unsecured notes
11.95% 114.2 million, maturing July 27, 2027	114.2			114.2
Total	353.7			339.2
Unamortized discount of senior unsecured notes	(1.0	)		(1.1	)
Deferred financing costs	(2.3	)		(2.7	)
Total long-term debt	350.4		$	335.4
Current portion	-		$	3.0
Non-current portion	350.4		$	332.4

All values are in US Dollars.

OBSIDIAN ENERGY FIRST QUARTER 2025	NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS 7

The Company has a reserve-based syndicated credit facility which is subject to a semi-annual borrowing base redetermination (typically completed in May and November of each year). We completed our semi-annual borrowing redetermination early in conjunction with our Pembina asset disposition to InPlay. Upon closing the disposition, the aggregate amount available under the syndicated credit facility is $235.0 million, which was reduced from $300.0 million subsequent to March 31, 2025. At that time, the revolving period and maturity dates under the syndicated credit facility were extended to May 31, 2026 and May 31, 2027, respectively. On April 7, 2025, the Company used the cash proceeds from the Pembina disposition to reduce the amount outstanding under our syndicated credit facility to approximately $30 million.

As part of the terms of the senior unsecured notes, the Company is required, in certain circumstances, to make a repurchase offer (the "Repurchase Offer") at a price of $1,030 per $1,000 principal amount to an aggregate amount of $63.8 million (including open market purchases), which has been reduced to $50.4 million based on previous Repurchase Offers and open market purchases. The obligation to make a Repurchase Offer is based on free cash flow for the six months ended June 30 (typically offered in August) and based on free cash flow for the six months ended December 31 (typically offered in March). Minimum available liquidity thresholds and projected leverage ratios under the Company's syndicated credit facilities are also required to be met in order to proceed with a Repurchase Offer. In the first quarter of 2025, the Company made a Repurchase Offer for $3.0 million, however, there was no uptake from note holders.

Financing expense consists of the following:

	Three months ended March 31
	2025		2024
Interest	$	7.5	$	6.7
Accretion on decommissioning liability		4.6		4.2
Accretion on office lease provision		-		0.2
Accretion on discount of senior unsecured notes		0.1		0.1
Accretion on lease liabilities		0.1		0.1
Loss on repurchased senior unsecured notes		-		0.1
Deferred financing costs		0.4		0.6
Financing	$	12.7	$	12.0
OBSIDIAN ENERGY FIRST QUARTER 2025	NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS 8
---	---

Lease liabilities

Total lease liabilities included in the Consolidated Balance Sheets are as follows:

	Three months ended<br>March 31, 2025			Year ended<br>December 31, 2024
Balance, beginning of period	$	6.6		$	8.0
Additions		0.5			-
Accretion charges		0.1			0.6
Lease payments		(0.6	)		(2.0	)
Balance, end of period	$	6.6		$	6.6
Current portion	$	2.3		$	2.1
Non-current portion	$	4.3		$	4.5

Provisions

	As at
	March 31, 2025		December 31, 2024
Decommissioning liability	$	112.1	$	115.7
Office lease provision (1)		-		0.7
Total	$	112.1	$	116.4
Current portion	$	19.3	$	20.4
Non-current portion	$	92.8	$	96.0

The office lease provision represented the leased office space which expired in January 2025.

Decommissioning liability

At March 31, 2025, the decommissioning liability was determined by applying an inflation factor of 2.0 percent (December 31, 2024 - 2.0 percent) and the inflated amount was discounted using a credit-adjusted rate of 10.0 percent (December 31, 2024 – 10.0 percent) over the expected useful life of the underlying assets, currently extending over 50 years into the future. Including the impact of the assets held for sale, at March 31, 2025, the total decommissioning liability on an undiscounted, uninflated basis was $355.6 million (December 31, 2024 - $357.0 million).

Changes to the decommissioning liability were as follows:

	Three months ended<br>March 31, 2025			Year ended<br>December 31, 2024
Balance, beginning of period	$	115.7		$	172.6
Net liabilities added (1)		0.2			2.0
Acquisition		-			0.4
Increase (decrease) due to changes in estimates		(0.9	)		20.3
Liabilities settled		(6.6	)		(23.9	)
Transfers to liabilities for assets held for sale		(0.9	)		(72.2	)
Accretion charges		4.6			16.5
Balance, end of period	$	112.1		$	115.7
Current portion	$	19.3		$	19.7
Non-current portion	$	92.8		$	96.0

Includes additions from drilling activity, facility capital spending and disposals related to net property dispositions.

OBSIDIAN ENERGY FIRST QUARTER 2025	NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS 9

Risk management

Financial instruments consist of cash (overdrafts), accounts receivable, fair values of derivative financial instruments, accounts payable and accrued liabilities and long-term debt. At March 31, 2025, the fair values of these financial instruments approximate their carrying amounts.

The fair values of all outstanding financial commodity related contracts are reflected on the Consolidated Balance Sheets with the changes during the period recorded in income as unrealized gains or losses.

At March 31, 2025 and December 31, 2024, the only asset or liability measured at fair value on a recurring basis was the risk management asset and liability, which was valued based on “Level 2 inputs” being quoted prices in markets that are not active or based on prices that are observable for the asset or liability.

The following table reconciles the changes in the fair value of financial instruments outstanding:

Risk management asset (liability)	Three months ended<br>March 31, 2025			Year ended<br>December 31, 2024
Balance, beginning of period	$	7.1		$	11.8
Unrealized gain (loss) on financial instruments:
Oil		(10.3	)		3.3
Natural gas		(4.9	)		(8.5	)
Electricity		-			0.5
Total fair value, end of period	$	(8.1	)	$	7.1
Current asset portion	$	-		$	8.4
Current liability portion	$	(8.1	)	$	(1.3	)

Obsidian Energy had the following financial instruments outstanding as at March 31, 2025. Fair values are determined using external counterparty information, which is compared to observable market data. The Company limits our credit risk by executing counterparty risk procedures which include transacting only with institutions within our syndicated credit facility or companies with high credit ratings and by obtaining financial security in certain circumstances.

	Notional<br>Volume	Remaining<br>Term	Price
Oil
WTI Swap	5,750 bbl/d	April 2025	98.78/bbl	(0.6	)
WTI Swap	1,500 bbl/d	May 2025	100.20/bbl	(0.1	)
WTI Collar	3,500 bbl/d	April 2025	95.00/bbl - 99.00/bbl	(0.4	)
WTI Collar	3,000 bbl/d	May 2025	97.00/bbl - 101.50/bbl	(0.2	)
WCS Differential	6,000 bbl/d	April 2025 - December 2025	(19.30)/bbl	(4.0	)
WCS Differential	2,500 bbl/d	April 2025 - June 2025	(19.60)/bbl	(1.0	)
WCS Differential	1,750 bbl/d	July 2025 - September 2025	(17.21)/bbl	(0.2	)
MSW Differential	1,500 bbl/d	April 2025 - June 2025	(7.90)/bbl	(0.4	)
MSW Differential	500 bbl/d	July 2025 - September 2025	(6.59)/bbl	(0.1	)
AECO
AECO Swap	17,062 mcf/d	April 2025 - October 2025	2.24/mcf	(1.0	)
AECO Collar	1,896 mcf/d	April 2025 - October 2025	2.11/mcf - 2.64/mcf	(0.1	)
Total				(8.1	)

All values are in US Dollars.

OBSIDIAN ENERGY FIRST QUARTER 2025	NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS 10

Subsequent to March 31, 2025, the Company entered into the following additional financial instruments:

	Notional<br>Volume	Remaining<br>Term	Price
Oil
WTI Swap	2,250 bbl/d	May 2025	$87.86/bbl
WTI Collar	500 bbl/d	May 2025	$99.00/bbl - $103.50/bbl
AECO
AECO Swap	2,844 mcf/d	May 2025 - October 2025	$2.34/mcf

The components of risk management within Income on the Consolidated Statements of Income are as follows:

	Three months ended March 31
	2025			2024
Realized
Settlement of oil contracts loss	$	(0.2	)	$	-
Settlement of natural gas contracts gain		2.9			3.8
Total realized risk management gain	$	2.7		$	3.8
Unrealized
Oil contracts loss	$	(10.3	)	$	(0.3	)
Natural gas contracts loss		(4.9	)		(4.0	)
Total unrealized risk management loss		(15.2	)		(4.3	)
Risk management loss	$	(12.5	)	$	(0.5	)

Market Risks

Obsidian Energy is exposed to normal market risks inherent in the oil and natural gas business, including, but not limited to, commodity price risk, foreign currency rate risk, credit risk, interest rate risk, liquidity risk, supply cost risk, geopolitical risk and climate change risk. The Company seeks to mitigate these risks through various business processes and management controls and from time to time by using financial instruments.

The government of the United States of America continues to employ a tariff strategy on goods that are sourced in Canada and around the world. If tariffs are enforced for a prolonged period of time, it could impact the demand for energy products and, in turn, commodity prices. Production costs and supply chain expenses could also be impacted depending on the products that have tariffs placed on them. The Company will continue to monitor this situation.

There have been no material changes to these risks from those discussed in the Company’s annual audited consolidated financial statements as at and for the year ended December 31, 2024.

OBSIDIAN ENERGY FIRST QUARTER 2025	NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS 11

Revenue and Other Income

The Company’s significant revenue streams consist of the following:

	Three months ended March 31
	2025		2024
Oil	$	182.4	$	149.4
NGLs		14.8		12.8
Natural gas		13.8		15.1
Production revenues		211.0		177.3
Processing fees		2.8		3.9
Oil and natural gas sales		213.8		181.2
Other income		1.8		2.1
Oil and natural gas sales and other income	$	215.6	$	183.3

Shareholders’ equity

i) Issued

Shareholders’ capital			Amount
Balance, December 31, 2023	77,588,538		$	2,175.1
Issued pursuant to equity compensation plans (1)	581,084			2.5
Repurchase of common shares for cancellation	(4,484,820	)		(41.7	)
Tax on repurchases of common shares (2)	-			(0.7	)
Balance, December 31, 2024	73,684,802			2,135.2
Issued pursuant to equity compensation plans (1)	346,325			2.1
Repurchase of common shares for cancellation	(1,157,874	)		(9.6	)
Tax on repurchases of common shares (2)	-			(0.1	)
Balance, March 31, 2025	72,873,253		$	2,127.6

Upon vesting or exercise of equity awards, the net benefit is recorded as a reduction of other reserves and an increase to shareholders’ capital.
Includes tax associated with common share repurchases less common share issuances under the Company's share-based compensation plans.

Pursuant to our return of capital initiative to our shareholders, in the first quarter of 2025, the Company renewed our normal course issuer bid ("NCIB") with the Toronto Stock Exchange ("TSX"). Purchases under the NCIB will continue to be subject to having $65 million of liquidity and complying with the terms of our current credit facilities. During the first quarter of 2025, the Company utilized the NCIB which resulted in 1,157,874 common shares being repurchased and canceled at an average price of $8.29 per share for total consideration of $9.6 million. The total consideration paid includes commissions and fees and is recorded as a reduction to Shareholders' Equity.

Subsequent to March 31, 2025 and up to May 6, 2025, the Company repurchased and cancelled an additional 2,356,230 common shares at an average price of $6.34 per share for total consideration of $14.9 million.

ii) Earnings per share - Basic and Diluted

The weighted average number of shares used to calculate per share amounts was as follows:

	Three months ended March 31
Average shares outstanding (millions)	2025		2024
Basic		73.5		77.3
Dilutive impact (1)		2.9		3.0
Diluted		76.4		80.3

Includes impact of stock options and restricted share units.

OBSIDIAN ENERGY FIRST QUARTER 2025	NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS 12

Share-based compensation

Share-based compensation expense relates to options ("Options") to acquire common shares granted under the Company's Stock Option Plan (the “Option Plan”), restricted shares units (“RSUs") granted under the Restricted and Performance Share Unit Plan (“RPSU plan”), deferred share units ("DSUs") granted under the Deferred Share Unit Plan (“DSU plan”) and performance share units (“PSUs”) granted under the RPSU plan.

The DSU's and PSU's follow the liability method of accounting where the change in share price at the balance sheet date results in a mark-to-market valuation. Settlement of the units or awards, which can be in the form of cash or shares, only occurs when they vest. The Options and RSU's follow the equity method of accounting where the fair value of the option or unit is calculated at the grant date and expensed over the expected life because these securities are typically settled in shares.

Share-based compensation consisted of the following:

	Three months ended March 31
	2025		2024
DSUs	$	0.3	$	4.4
PSUs		0.5		1.6
NTIP (1)		-		0.9
Liability based incentive plans	$	0.8	$	6.9
RSUs	$	1.7	$	1.7
Options		0.4		0.4
Equity based incentive plans		2.1		2.1
Share-based compensation	$	2.9	$	9.0

Restricted awards outstanding under the Non-Treasury Incentive Award Plan ("NTIP") were classified as a liability and were settled in cash. There were no outstanding restricted awards under the NTIP at March 31, 2025.

The share price used in the fair value calculation of the DSU and PSU obligations at March 31, 2025 was $8.43 per share compared to $8.36 per share on December 31, 2024 and $11.18 per share on March 31, 2024. The weighted average trading price of the Company's common shares was $7.93 for the first quarter of 2025 (2024 - $9.43).

Restricted and Performance Share Unit plan

Restricted Share Unit grants under the RPSU plan

Obsidian Energy awards RSU grants under the RPSU plan whereby employees receive consideration that fluctuates based on the Company’s share price on the TSX. Consideration can be in the form of cash or shares purchased on the open market or issued from treasury.

RSUs (number of shares equivalent)
Outstanding, beginning of period	1,559,563		1,290,042
Granted	837,090		713,910
Vested (1)	(515,710	)	(363,484	)
Forfeited	(5,556	)	(80,905	)
Outstanding, end of period	1,875,387		1,559,563

Vested RSUs settled in shares.

OBSIDIAN ENERGY FIRST QUARTER 2025	NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS 13

The fair value and weighted average assumptions of the RSUs granted during the periods were as follows:

	Three months ended March 31
	2025			2024
Average fair value of RSUs granted (per RSU)	$	7.52		$	9.64
Expected life of RSUs (years)		3.0			3.0
Expected forfeiture rate		0.1	%		0.1	%

Performance Share Unit grants under the RPSU plan

The RPSU plan allows Obsidian Energy to grant PSUs to employees of the Company.

The PSUs are classified as a liability on our Consolidated Balance Sheet as the PSUs are typically settled in cash. The PSU liability fluctuates based on the Company’s share price on the TSX at each period end date. Employees receive consideration only when the PSUs vest.

PSUs (number of shares equivalent)
Outstanding, beginning of period	635,910		896,690
Granted	401,740		271,940
Vested (1)	(124,610	)	(532,720	)
Outstanding, end of period	913,040		635,910

Vested PSUs settled in cash.

	As at
PSU liability	March 31, 2025		December 31, 2024
Current	$	0.7	$	1.5
Non-current		0.4		0.6
Total	$	1.1	$	2.1

Option Plan

The Option Plan allows the Company to issue Options to officers, employees, directors and other service providers.

	Three months ended<br>March 31, 2025					Year ended<br>December 31, 2024
Options	Number of<br>Options			Weighted Average<br>Exercise Price		Number of<br>Options			Weighted Average<br>Exercise Price
Outstanding, beginning of period		2,240,120		$	4.59		2,305,489		$	3.30
Granted		484,670			7.52		336,210			9.65
Exercised (1)		(87,476	)		0.97		(401,579	)		1.39
Outstanding, end of period		2,637,314		$	5.25		2,240,120		$	4.59
Exercisable, end of period		1,475,257		$	4.30		1,414,406		$	3.51

Exercised options were settled in shares.

The fair value and weighted average assumptions of the Options granted during the periods were as follows:

	Three months ended March 31
	2025			2024
Average fair value of Options granted (per Option)	$	4.38		$	6.41
Expected volatility		69.7	%		76.7	%
Expected life of Options (years)		4.8			4.5
Expected forfeiture rate		0.1	%		0.2	%
OBSIDIAN ENERGY FIRST QUARTER 2025	NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS 14
---	---

Deferred Share Unit plan

The DSU plan allows the Company to grant DSUs to non-employee directors only.

The DSU plan is classified as a liability on our Consolidated Balance Sheet as the DSUs are settled in cash. The DSU liability fluctuates based on the Company’s share price on the TSX at each period end date. Non-employee directors receive consideration only upon redemption of the DSUs following retirement from the Board of Directors, not before this date, with the consideration based on the volume-weighted-average trading price of the common shares on the TSX.

Deferred Share Units	Three months ended<br>March 31, 2025		Year ended<br>December 31, 2024
Outstanding, beginning of period		1,960,272		1,893,280
Granted		18,703		66,992
Outstanding, end of period		1,978,975		1,960,272
	As at
---	---	---	---	---
DSU Liability	March 31, 2025		December 31, 2024
Current	$	16.8	$	16.5
Total	$	16.8	$	16.5

At March 31, 2025, the Company had no outstanding DSUs that were redeemable.

Deferred income tax asset

	Three months ended<br>March 31, 2025			Year ended<br>December 31, 2024
Balance, beginning of period	$	273.3		$	210.8
Deferred income tax expense		(5.0	)		62.5
Balance, end of period	$	268.3		$	273.3

The Company has recognized a deferred tax asset, as we expect to have sufficient taxable profits in future years in order to fully utilize the remaining deferred tax asset balance. The deferred tax asset is reduced by net income for the period on an after-tax basis.

Commitments and contingencies

The Company is involved in various litigation and claims in the normal course of business and records provisions for claims as required.

Subsequent event

On April 7, 2025, the Company closed our previously announced disposition to InPlay of our operated Pembina assets for proceeds of approximately $320.0 million, prior to closing and other adjustments provided for in the definitive asset purchase and sale agreement. The disposition included all the Company's assets in Pembina, with the exception of our non-operated interest in Pembina Cardium Unit #11 which we retain. The disposition had an effective date of December 1, 2024.

OBSIDIAN ENERGY FIRST QUARTER 2025	NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS 15

EX-99.4

Exhibit 99.4

FORM 52-109F2

CERTIFICATION OF INTERIM FILINGS

FULL CERTIFICATE

I, Stephen Loukas, President and Chief Executive Officer of Obsidian Energy Ltd., certify the following:

Review: I have reviewed the interim financial report and interim MD&A (together the “interim filings”) of Obsidian Energy Ltd. (the “issuer”) for the interim period ended March 31, 2025.
No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.
Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i) material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1 Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the framework set forth in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

5.2 N/A.

5.3 N/A.

Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on January 1, 2025 and ended on March 31, 2025 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: May 7, 2025

(signed) “Stephen Loukas”

______________________

Stephen Loukas

President & Chief Executive Officer

EX-99.5

Exhibit 99.5

FORM 52-109F2

CERTIFICATION OF INTERIM FILINGS

FULL CERTIFICATE

I, Peter Scott, Senior Vice President and Chief Financial Officer of Obsidian Energy Ltd., certify the following:

Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Obsidian Energy Ltd. (the “issuer”) for the interim period ended March 31, 2025.
No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.
Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i) material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

5.2 N/A.

5.3 N/A.

Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on January 1, 2025 and ended on March 31, 2025 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: May 7, 2025

(signed) “Peter Scott”

_______________________

Peter Scott

Senior Vice President and Chief Financial Officer