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 July 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 July 30, 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 July 30, 2025
99.2	Management’s Discussion and Analysis for the three and six months ended June 30, 2025
99.3<br><br>99.4<br><br>99.5	Financial Statements for the three and six months ended June 30, 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 Second Quarter 2025 Results

Achieved average production of 28,943 boe per day and funds flow from operations of $65.8 million ($0.94 per share)
Active share buyback program with ~5.4 million shares (seven percent of outstanding shares) repurchased and cancelled for $36.6 million

CALGARY, July 30, 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 second quarter of 2025.

							Six months ended<br>June 30
				2024			2025				2024
FINANCIAL
(millions, except per share amounts)
Cash flow from operating activities	$	55.2			$	77.9		$	151.9			$	136.6
Basic per share (/share)1		0.79				1.02			2.12				1.78
Diluted per share (/share)1		0.75				0.98			2.04				1.71
Funds flow from operations2		65.8				115.2			165.9				199.6
Basic per share (/share)3		0.94				1.51			2.31				2.60
Diluted per share (/share)3		0.90				1.44			2.23				2.50
Net income		15.3				37.1			30.7				49.0
Basic per share (/share)		0.22				0.48			0.43				0.64
Diluted per share (/share)		0.21				0.46			0.41				0.61
Capital expenditures		40.2				59.2			168.6				173.5
Property acquisitions (dispositions), net		(210.9	)			84.9			(210.9	)			84.9
Decommissioning expenditures		4.0				4.0			10.6				14.1
Long-term debt		222.8				376.9			222.8				376.9
Net debt2	$	270.2			$	432.5		$	270.2			$	432.5
OPERATIONS
Daily Production
Light oil (bbl/d)		6,314				13,782			9,503				13,430
Heavy oil (bbl/d)		12,041				7,026			11,467				6,887
NGL (bbl/d)		2,189				3,193			2,628				2,989
Natural gas (mmcf/d)	50				71			60				70
Total production4 (boe/d)		28,943				35,773			33,653				35,006
Average sales price (before hedging)1
Light oil (/bbl)	$	91.09			$	107.61		$	96.66			$	101.38
Heavy oil (/bbl)	61.27				79.73				65.46			70.26
NGL (/bbl)	39.42				48.92				47.60			49.62
Natural gas (/mcf)	$	2.00			$	1.33		$	2.11			$	1.85

All values are in US Dollars.

Netback (/boe)
Sales price	51.83		$	64.11		$	57.09		$	60.67
Risk management gain (loss)	(0.64	)		1.20			0.17			1.22
Net sales price	51.19			65.31			57.26			61.89
Royalties	(6.03	)		(8.34	)		(7.27	)		(7.71	)
Net operating costs3	(13.54	)		(13.83	)		(14.78	)		(13.87	)
Transportation	(4.49	)		(4.15	)		(4.69	)		(4.05	)
Netback3 (/boe)	27.13		$	38.99		$	30.52		$	36.26

All values are in US Dollars.

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".

PRESIDENTS MESSAGE

"Our second quarter was foundationally strong for the Company as we closed on the disposition of our operated Pembina assets, which further strengthened our balance sheet and reduced our decommissioning liabilities, allowing us to make significant progress on our return of capital initiative through our active share buyback program", commented Stephen Loukas, Obsidian Energy's President and CEO. "Given the substantial discount that we believe our shares trade to intrinsic value, we accelerated share repurchases during the quarter which led to the cancellation of over seven percent of our outstanding shares. Since the inception of our share buyback program in 2023, we have repurchased and cancelled a total of ~20 percent of our shares, with 67.1 million currently outstanding".

Mr. Loukas continued, "Operationally, the second quarter was a success as we brought all of our wells on production from our first half program, drilled our Clearwater waterflood pilot at the Dawson 4-24 pad and achieved our key guidance metrics. Our second half development program is well underway and started with three rigs operating in Peace River and plans to return to Willesden Green with a one rig program starting in August".

SECOND Quarter 2025 Corporate Highlights

Funds Flow from Operations – The Company generated funds flow from operations ("FFO") of $65.8 million ($0.94 per share basic) compared to $115.2 million ($1.51 per share basic) in the second quarter of 2024. Revenues declined as lower oil prices combined with lower production volumes due to the Pembina disposition led to reduced FFO in 2025. The reduction in FFO was partially mitigated on a per share basis given our active buyback program under our normal course issuer bid ("NCIB").
Capital Development – Second quarter capital expenditures totaled $40.2 million (2024 – $59.2 million) while decommissioning expenditures were $4.0 million (2024 – $4.0 million). Activity during the second quarter of 2025 was focused on bringing the wells we drilled in Peace River earlier in the year on production and drilling our 4-24 Dawson waterflood wells.
Pembina Asset Disposition – On April 7, 2025, we closed our previously announced Pembina asset disposition (the "Disposition") to InPlay Oil Corp. ("InPlay"). The Disposition had an effective date of December 1, 2024, and included all the Company's assets in the Pembina area, except for our non-operated interest in the Pembina Cardium Unit #11.
Share Buyback Program – The Company was very active during the second quarter of 2025 and repurchased and cancelled a total of 5.4 million shares under the Company’s NCIB for $36.6 million (at an average price of $6.80 per share).
Net Operating Costs – Net operating costs of $13.54 per boe in the second quarter of 2025 compared to $13.83 per boe in 2024. The close of the Disposition and the removal of those higher cost properties from our portfolio led to a reduction to net operating costs which was partially offset by increased trucking costs due to expanded operations in our Peace River asset compared to 2024.
General and administrative (“G&A”) Costs – G&A costs were $1.92 per boe in the second quarter of 2025 compared to $1.49 per boe in 2024. G&A costs in the second quarter of 2025 increased on a per boe basis given our lower production levels as a result of the Disposition.
Net Debt – Net debt levels were $270.2 million at June 30, 2025, compared to $411.7 million at December 31, 2024. The cash proceeds associated with the Disposition were applied against bank debt which led to significantly lower net debt.
Net Income – Net income for the second quarter of 2025 was $15.3 million ($0.22 per share basic) versus $37.1 million ($0.48 per share basic) in 2024. Net income was impacted by the volatile commodity price environment and lower production from the Disposition, which led to lower revenues, during the second quarter of 2025.

Highlights SUBSEQUENT TO SECOND quarter 2025

InPlay Share Disposition - In July, we announced that a third party made a non-binding offer to the Company to acquire our entire common share position in InPlay, consisting of 9,139,784 InPlay common shares (“InPlay Shares”). The offer price per InPlay Share is in excess of the closing price for such shares on the Toronto Stock Exchange as of July 15, 2025 of $9.59 per share.
Share Buyback Program – We repurchased and cancelled an additional 0.6 million common shares at an average price of $8.01 per share for total consideration of $4.9 million under the NCIB up to July 29, 2025. In 2025, repurchases and cancellations total 7.1 million common shares at an average price of $7.15 per share for total consideration of approximately $51.1 million, resulting in 67.1 million common shares currently outstanding.
Since the inception of the NCIB in 2023, we have re-purchased and cancelled a total of approximately 16.7 million common shares (20% of our outstanding shares) for total consideration of approximately $140.2 million.

SECOND QUARTER 2025 CAPITAL program & HIGHLIGHTS

The Company had an active 2025 first half capital program focused on development and exploration/appraisal activities at Peace River, targeting both the Bluesky and Clearwater formations. Additionally, we commenced our first Clearwater waterflood pilot project in the Dawson field with water injection planned in the third quarter of 2025. Capital program highlights for the second quarter of 2025 were as follows:

Completed First Half Development Program – We rig released all wells from our first half 2025 capital program by the end of June, including six (6.0 net) during the second quarter of 2025 in Peace River, inclusive of two (2.0 net) water-flood injection wells in our Dawson Clearwater acreage.
Strong Initial Well Results – We brought on production 20 (16.7 net) wells during the second quarter of 2025, primarily in Peace River, with very encouraging initial production (“IP”) rates;
Peace River (Bluesky):
A total of eight (7.5 net) wells were brought on production in our Harmon Valley South ("HVS"), Walrus and Seal fields. Notable initial well results include the 546 boe/d IP30 rate (100 percent oil) achieved at our 1 (1.0 net) well HVS 14-07 pad and average IP30 rate of 395 boe/d (100 percent oil) per well at our 2 (2.0 net) well HVS 13-08 pad.
Two (2.0 net) follow-up wells on the HVS 14-07 pad have been rig released as part of our second half program and will be on production in August.
Peace River (Clearwater):
During the second quarter, 7 (7.0 net) wells were brought on production in our Dawson Clearwater asset, including the 2 (2.0 net) single leg injector waterflood wells, which were placed on production prior to conversion to water injection in the third quarter. Regulatory approval for the waterflood project has been received and we plan to begin injecting water during the third quarter, in conjunction with starting two additional producing wells on the Dawson 4-24 pad.
Notable initial well results include the 304 boe/d (100 percent oil) per well average IP30 achieved at the Dawson 4-24 waterflood pilot pad. At the Dawson 4-23 pad an additional 2 (2.0 net) wells were placed on production bringing the pad total to 4 (4.0 net) wells at an average IP30 per well of 253 Boe/d (100% oil).
Pembina Cardium Unit #11:
The five-well (2.2 net) non-operated program was drilled in the first quarter with the fifth and final well (0.45 net) brought on production in May with a gross IP30 of 317 boe/d (92% oil).

We started our second half 2025 capital program at the end of June with three rigs running in Peace River and will begin operations with an additional rig at Willesden Green in August. Thus far we have spud 6 (6.0 net) wells in Peace River, following up recent production success on the HVS 14-07 pad, Dawson 04-24 pad and the new Dawson 13-23 pad.

WELLS RIG RELEASED AND ON PRODUCTION 2025

	H1 Gross (Net) Wells		Forecasted Rig Released Gross (Net) Wells
	Rig Released	On Production	H2	2025
DEVELOPMENT WELLS
Heavy Oil Assets
Peace River (Bluesky)	12 (10.4)	14 (12.4)	2 (2.0)	14 (12.4)
Peace River (Clearwater)	7 (7.0)	7 (7.0)	18 (18.0)	25 (25.0)
Light Oil Assets
Willesden Green (Cardium)	-	-	4 (4.0)	4 (4.0)
Willesden Green (Belly River)	-	-	3 (3.0)	3 (3.0)
Willesden Green (Mannville)	-	-	1 (1.0)	1 (1.0)
Pembina (Cardium)1	4 (4.0)	4 (4.0)	-	4 (4.0)
	23 (21.4)	25 (23.4)1	28 (28.0)	51 (49.4)
EXPLORATION/APPRAISAL WELLS
Peace River (Bluesky)	3 (3.0)	3 (3.0)	-	3 (3.0)
Peace River (Clearwater)	4 (4.0)	4 (4.0)	-	4 (4.0)
	7 (7.0)	7 (7.0)	-	7 (7.0)
TOTAL OPERATED WELLS2	30 (28.4)3	32 (30.4)	28 (28.0)	58 (56.4)

Capital expenditures for the Pembina wells were paid for by InPlay as they were included in the interim closing adjustments of the Disposition.
In addition, Obsidian Energy participated in the rig release of five non-operated (2.2 net) wells in the first quarter of 2025 and anticipates participating in six (2.7) non-operated wells in the second half of 2025.
Three (3.0 net) wells rig released in 2024 were placed on production in the first quarter of 2025; they are excluded from the total. The number of wells also excludes the two (2.0 net) Peace River single leg injector wells.

GUIDANCE

Second quarter results compared favourably with the guidance ranges outlined below. FFO came in higher than expectations primarily due to a combination of higher than forecasted oil prices and lower costs, specifically net operating costs. The Company was extremely active with our share buyback program during the second quarter which resulted in net debt slightly higher than guidance.

		Q2 2025E	Q2 2025 Actuals
Production1	boe/d	28,800 – 29,600	28,943
% Oil and NGLs	%	72	71
Capital expenditures	$ millions	37 – 42	40.2
Decommissioning expenditures	$ millions	4 – 5	4.0
Net operating costs2	$/boe	13.50 – 13.85	13.54
General & administrative	$/boe	2.00 – 2.10	1.92
Based on midpoint of above guidance
FFO2	$ millions	60	65.8
FFO/share2	$/share	0.86	0.94
FCF2	$ millions	16	21.6
FCF/share2	$/share	0.23	0.31
Net debt (prior to NCIB)2,3	$ millions	255	270.2
Annualized net debt (prior to NCIB) to FFO2,3	times	1.1	1.0
		H1 2025E	H1 2025 Actuals
---	---	---	---
Production1	boe/d	33,600 – 34,000	33,653
% Oil and NGLs	%	71	70
Capital expenditures	$ millions	165 – 170	168.6
Decommissioning expenditures	$ millions	11 – 12	10.6
Net operating costs2	$/boe	14.74 – 14.90	14.78
General & administrative	$/boe	1.78 – 1.82	1.74
Based on midpoint of above guidance
FFO2	$ millions	160	165.9
FFO/share2	$/share	2.23	2.31
FCF2	$ millions	(19)	(13.3)
FCF/share2	$/share	(0.27)	(0.19)
Net debt (prior to NCIB)2,3	$ millions	255	270.2
Annualized net debt (prior to NCIB) to FFO2,3	times	0.8	0.8
Pricing assumptions
---	---	---	---
WTI	US$/bbl	66.20	67.58
MSW Differential	US$/bbl	4.05	3.91
WCS Differential	US$/bbl	11.62	11.47
AECO	$/GJ	2.01	1.89

Refer to ‘Supplemental Production Disclosure’ below for details of production by product types.
See “Non-GAAP and Other Financial Measures” section below for further details.
Net debt figures did not include the impact of the 9.1 million InPlay Shares, which were received as part of the Disposition,

For our second half 2025 capital plan and financial guidance, please refer to our press release on July 10, 2025 "Obsidian Energy Announces Second Half 2025 Capital Program and Guidance" on our website.

HEDGING UPDATE

The Company has been actively hedging in light of the volatile commodity market and currently has the following contracts in place on a weighted average basis:

Type		Remaining Term
Oil
WTI Swap	12,375	July 2025
WTI Swap	11,750	August 2025
WTI Swap	9,500	September 2025
WTI Swap	7,500	October 2025
WTI Swap	4,500	November 2025
WTI Swap	4,000	December 2025
WCS Differential	7,750	Q3 2025	)
WCS Differential	6,000	Q4 2025	)
MSW Differential	500	Q3 2025	)

All values are in US Dollars.

Type		Remaining Term		Price (/mcf)
AECO Swap	25,118	July 2025 - October 2025	$	2.24
AECO Swap	13,033	November 2025 - March 2026		3.55
AECO Swap	6,635	April 2026 - October 2026
AECO Collar	1,896	July 2025 - October 2025	$	2.11 - 2.64

All values are in US Dollars.

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.

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 and six months ended June 30, 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 and six months ended June 30, 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 and six months ended June 30, 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 and six months ended June 30, 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>June 30						Six months ended<br>June 30
(millions, except per share amounts)	2025			2024			2025			2024
Cash flow from operating activities	$	55.2		$	77.9		$	151.9		$	136.6
Change in non-cash working capital		4.3		29.7				(1.5	)		43.1
Decommissioning expenditures		4.0			4.0		10.6				14.1
Onerous office lease settlements		-		2.2			0.7				4.5
Deferred financing costs		(0.6	)		(0.6	)		(1.0	)		(1.2	)
Restructuring charges		0.7			-		0.8				-
Transaction costs		2.2		1.4			4.4				1.4
Other expenses		-		0.6				-			1.1
FFO		65.8			115.2			165.9			199.6
Capital expenditures		(40.2	)		(59.2	)		(168.6	)		(173.5	)
Decommissioning expenditures		(4.0	)		(4.0	)		(10.6	)		(14.1	)
Free Cash Flow	$	21.6		$	52.0		$	(13.3	)	$	12.0

Netback to Sales Price


	Three months ended<br>June 30						Six months ended<br>June 30
(millions)	2025			2024			2025			2024
Sales price	$	136.5		$	208.7		$	347.8		$	386.5
Risk management gain (loss)		(1.7	)		4.0			1.0			7.8
Net sales price		134.8			212.7			348.8			394.3
Royalties		(15.9	)		(27.1	)		(44.3	)		(49.1	)
Transportation		(11.8	)		(13.5	)		(28.6	)		(25.8	)
Net operating costs		(35.6	)		(45.1	)		(90.0	)		(88.3	)
Netback	$	71.5		$	127.0		$	185.9		$	231.1

Net Operating Costs to Operating Costs


	Three months ended<br>June 30							Six months ended<br>June 30
(millions)		2025			2024				2025			2024
Operating costs		$	39.7		$	49.1			$	98.7		$	98.4
Less processing fees			(2.6	)		(2.9	)			(5.4	)		(6.8	)
Less road use recoveries			(1.5	)		(1.7	)			(3.3	)		(3.8	)
Add realized power risk management loss			-			0.6				-			0.5
Net operating costs		$	35.6		$	45.1			$	90.0		$	88.3

Net Debt to Long-Term Debt


(millions)	2025			2024
Long-term debt
Syndicated credit facility	$	114.0		$	217.5
Senior unsecured notes		112.2			114.2
Term loan		-			50.0
Unamortized discount of senior unsecured notes		(0.9	)		(1.4	)
Deferred financing costs		(2.5	)		(3.4	)
Total		222.8			376.9
Working capital deficiency
Cash		(1.6	)		(0.3	)
Accounts receivable		(68.1	)		(89.0	)
Prepaid expenses and other		(14.4	)		(19.7	)
Accounts payable and accrued liabilities		131.5			164.6
Total		47.4			55.6
Net debt	$	270.2		$	432.5

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: our development plans for the second half of 2025, including our waterflood projects, timing and locations; our expected non-operated projects; that we will file our interim consolidated financial statements and MD&A on our website, SEDAR+ and EDGAR in due course; our hedges; and the timing of our updated corporate presentation.

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, including with respect to our InPlay Shares); 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 its 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.

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 we are unable to monetize our InPlay Shares; 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 and six months ended June 30, 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 and six months ended June 30, 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 July 29, 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)

	Jun. 30		Mar. 31		Dec. 31			Sep. 30		Jun. 30		Mar. 31		Dec. 31		Sep. 30
Three months ended	2025		2025		2024			2024		2024		2024		2023		2023
Production revenues	$	136.3	$	211.0	$	213.6		$	218.2	$	208.4	$	177.3	$	173.3	$	200.4
Cash flow from operating activities		55.2		96.7		115.0			110.3		77.9		58.7		117.7		95.3
Basic per share (1)		0.79		1.32		1.55			1.45		1.02		0.76		1.49		1.18
Diluted per share (1)		0.75		1.27		1.49			1.40		0.98		0.73		1.44		1.15
Funds flow from operations (2)		65.8		100.1		107.7			124.7		115.2		84.4		97.0		98.9
Basic per share (3)		0.94		1.36		1.45			1.64		1.51		1.09		1.23		1.22
Diluted per share (3)		0.90		1.31		1.39			1.58		1.44		1.05		1.18		1.19
Net income (loss)		15.3		15.4		(284.8	)		33.2		37.1		11.9		34.3		24.8
Basic per share		0.22		0.21		(3.83	)		0.44		0.48		0.15		0.44		0.31
Diluted per share	$	0.21	$	0.20	$	(3.83	)	$	0.42	$	0.46	$	0.15	$	0.42	$	0.30
Production
Light oil (bbl/d)		6,314		12,727		13,271			13,722		13,782		13,079		12,176		12,452
Heavy oil (bbl/d)		12,041		10,887		11,621			10,624		7,026		6,748		5,851		6,260
NGLs (bbl/d)		2,189		3,072		3,176			3,148		3,193		2,783		2,614		2,708
Natural gas (mmcf/d)		50		70		72			73		71		70		68		69
Total (boe/d)(4)		28,943		38,416		40,119			39,714		35,773		34,238		31,974		32,937

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 SECOND QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 1

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

	Three months ended<br>June 30						Six months ended<br>June 30
(millions, except per share amounts)	2025			2024			2025			2024
Cash flow from operating activities	$	55.2		$	77.9		$	151.9		$	136.6
Change in non-cash working capital		4.3			29.7			(1.5	)		43.1
Decommissioning expenditures		4.0			4.0			10.6			14.1
Onerous office lease settlements		-			2.2			0.7			4.5
Deferred financing costs		(0.6	)		(0.6	)		(1.0	)		(1.2	)
Restructuring		0.7			-			0.8			-
Transaction costs		2.2			1.4			4.4			1.4
Other expenses		-			0.6			-			1.1
Funds flow from operations (1)		65.8			115.2			165.9			199.6
Capital expenditures		(40.2	)		(59.2	)		(168.6	)		(173.5	)
Decommissioning expenditures		(4.0	)		(4.0	)		(10.6	)		(14.1	)
Free Cash Flow (1)	$	21.6		$	52.0		$	(13.3	)	$	12.0
Per share – funds flow from operations (2)
Basic per share	$	0.94		$	1.51		$	2.31		$	2.60
Diluted per share	$	0.90		$	1.44		$	2.23		$	2.50

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 decreased in Q2 2025 compared to Q2 2024 primarily due to lower production revenues, as a result of lower commodity prices and lower production levels due to the disposition of our operated Pembina assets at the start of Q2 2025. The disposition of the operated Pembina assets and associated lower production and lower revenues also impacted funds flow from operations for the first six months of 2025 compared to the 2024 period.

Pembina Disposition

On April 7, 2025, the Company closed the disposition (the "Pembina disposition") to InPlay Oil Corp. ("InPlay") of our operated Pembina (Cardium) assets (the "Pembina Assets"). Total consideration for the transaction included approximately $211 million of cash (inclusive of interim closing adjustments), 9,139,784 common shares of InPlay ("InPlay Shares") (updated to reflect InPlay's consolidation of its common shares on a one for six basis effective April 14, 2025) and a $15 million value associated with acquiring InPlay's 34.6 percent interest in the Willesden Green Cardium Unit #2 property. The transaction 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 transaction had 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 on our syndicated credit facility on closing. Subsequent to June 30, 2025, the Company announced that a third party made a non-binding offer to Obsidian Energy to acquire the Company’s entire common share position in InPlay, consisting of 9,139,784 InPlay Shares, at a price per InPlay Share in excess of the $9.59 closing price for such shares on the Toronto Stock Exchange ("TSX") as of July 15, 2025. The Company has entered into negotiations with the third party and InPlay in respect of the potential transaction outlined in the non-binding offer and has agreed to engage exclusively with the third party in respect of the potential transaction until August 1, 2025.

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

Business Strategy

Upon close of the Pembina Disposition, the Company has a more balanced portfolio of heavy and light oil assets. In Peace River 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 greater than 700 net sections, we expect to be able to continue to grow our Clearwater and Bluesky production through further development and delineation of existing and establishing new fields in the area. With a now more focused light oil asset base, we also expect to be able to grow our light assets through ongoing development. The pace and level of future development and growth will be subject to the macro-economic environment (commodity prices and service costs) as we look to generate acceptable returns and 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 made subsequent to Q2 2025, we have re-purchased and cancelled a total of approximately 16.7 million common shares (approximately 20 percent of our outstanding shares) for total consideration of $140.2 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.

The Company continued with our environmental remediation efforts in the first half of 2025 with a focus on abandoning and reclaiming inactive fields.

Business Environment

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

			Q1 2025			Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023			Q3 2023
Benchmark prices
WTI oil (US/bbl)	63.74		$	71.42		$	70.27		$	75.09		$	80.57		$	76.96		$	78.32		$	82.26
Edm mixed sweet par price (CAD/bbl)	84.04			95.00			94.39			97.60			105.41			92.21			99.46			107.89
Western Canada Select (CAD/bbl)	73.89			84.04			80.67			83.80			91.82			77.80			76.76			93.07
NYMEX Henry Hub (US/mmbtu)	3.44			3.65			2.79			2.16			1.89			2.24			2.88			2.55
AECO 5A Index (CAD/mcf)	1.69			2.17			1.48			0.69			1.18			2.50			2.30			2.60
Foreign exchange rate (US/CAD)	1.38			1.43			1.40			1.37			1.37			1.35			1.36			1.34
Benchmark differentials
WTI - Edm Light Sweet (US/bbl)	(2.84	)		(4.98	)		(2.42	)		(3.35	)		(3.63	)		(8.65	)		(5.19	)		(1.86	)
WTI - Western Canadian Select Heavy (US/bbl)	(10.20	)		(12.65	)		(12.54	)		(13.51	)		(13.55	)		(19.33	)		(21.88	)		(12.89	)
Average sales price (1) (2)
Light oil (CAD/bbl)	91.09			99.46			96.95			100.09			107.61			94.82			100.38			109.56
Heavy oil (CAD/bbl)	61.27			70.14			67.70			73.73			79.73			60.39			58.53			80.14
NGLs (CAD/bbl)	39.42			53.49			44.27			48.92			48.92			50.43			55.65			49.71
Total liquids (CAD/bbl)	68.11			82.21			78.88			84.04			91.64			79.08			82.85			93.40
Natural gas (CAD/mcf)	2.00		$	2.18		$	1.53		$	0.86		$	1.33		$	2.38		$	2.63		$	2.65

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 SECOND QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 3

Oil

WTI prices averaged US$63.74 per barrel during Q2 2025, with WTI prices starting the quarter at approximately US$63 per barrel in April before increasing to over US$67 per barrel in June. The increase late in the quarter was primarily driven by the Iran-Israel conflict and associated potential supply risk.

WCS differentials averaged US$10.20 per bbl for Q2 2025 compared to US$12.65 per bbl in Q1 2025. MSW differentials averaged US$2.84 for Q2 2025. Alberta wildfires and planned maintenance both led to a reduction in supply which contributed to the improved prices.

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

Type		Remaining<br>Term
WTI Swap	12,375	July 2025
WTI Swap	11,750	August 2025
WTI Swap	9,500	September 2025
WTI Swap	7,500	October 2025
WTI Swap	4,500	November 2025
WTI Swap	4,000	December 2025
WCS Differential	7,750	Q3 2025	)
WCS Differential	6,000	Q4 2025	)
MSW Differential	500	Q3 2025	)

All values are in US Dollars.

Natural Gas

The average NYMEX Futures price for the quarter settled at US$3.44 per mmbtu. In Alberta, AECO 5A prices for Q2 2025 averaged $1.69 per mcf, compared to $2.17 per mcf in Q1 2025. Increased supply which resulted in higher inventory levels suppressed prices throughout the quarter, with AECO 5A settling at an average price of $0.80 per mcf in June, a low for the quarter.

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

Type		Remaining<br>Term
AECO Swap	25,118	July 2025 - October 2025
AECO Swap	13,033	November 2025 - March 2026
AECO Swap	6,635	April 2026 - October 2026
AECO Collar	1,896	July 2025 - October 2025

All values are in US Dollars.

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

RESULTS OF OPERATIONS

Average Sales Prices (1)

	Three months ended<br>June 30									Six months ended<br>June 30
	2025			2024			% change			2025			2024			% change
Light oil (per bbl)	$	91.09		$	107.61			(15	)	$	96.66		$	101.38			(5	)
Heavy oil (per bbl)		61.27			79.73			(23	)		65.46			70.26			(7	)
NGL (per bbl)		39.42			48.92			(19	)		47.60			49.62			(4	)
Total liquids (per bbl)		68.11			91.64			(26	)		76.04			85.55			(11	)
Realized risk management loss (per bbl)		(1.11	)		(0.17	)		553			(0.54	)		(0.10	)		440
Total liquids, net (per bbl)		67.00			91.47			(27	)		75.50			85.45			(12	)
Natural gas (per mcf)		2.00			1.33			50			2.11			1.85			14
Realized risk management gain (per mcf)		0.08			0.67			(88	)		0.30			0.64			(53	)
Natural gas net (per mcf)		2.08			2.00			4			2.41			2.49			(3	)
Weighted average (per boe)		51.83			64.11			(19	)		57.09			60.67			(6	)
Realized risk management gain (loss) (per boe)		(0.64	)		1.20		N/A				0.17			1.22			(86	)
Weighted average net (per boe)	$	51.19		$	65.31			(22	)	$	57.26		$	61.89			(7	)

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

Production

	Three months ended<br>June 30							Six months ended<br>June 30
Daily production	2025		2024		% <br>change			2025		2024		% change
Light oil (bbl/d)		6,314		13,782		(54	)		9,503		13,430		(29	)
Heavy oil (bbl/d)		12,041		7,026		71			11,467		6,887		67
NGL (bbl/d)		2,189		3,193		(31	)		2,628		2,989		(12	)
Natural gas (mmcf/d)		50		71		(30	)		60		70		(14	)
Total production (boe/d)		28,943		35,773		(19	)		33,653		35,006		(4	)

In the 2025 periods, total production levels were lower compared to the 2024 periods primarily due to the Pembina Disposition which closed at the start of Q2 2025. Production associated with the Pembina assets averaged approximately 11,000 boe/d in Q1 2025.

The Company has grown production in our Peace River asset over the past two years which has resulted in an increase in our heavy oil volumes year-over-year. In the first six months of 2025, a total of 37 wells (32.6 net) were drilled and 39 wells (34.6 net) were brought on production.

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

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

	Three months ended<br>June 30							Six months ended<br>June 30
Daily production (boe/d) (1)	2025		2024		%<br>change			2025		2024		% change
Cardium		14,462		25,702		(44	)		19,687		24,880		(21	)
Peace River		12,827		7,222		78			12,221		7,254		68
Viking		1,338		2,538		(47	)		1,428		2,521		(43	)
Legacy		316		311		2			317		351		(10	)
Total		28,943		35,773		(19	)		33,653		35,006		(4	)

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

Netbacks

	Three months ended<br>June 30						Six months ended<br>June 30
(per boe)	2025			2024			2025			2024
Netback:
Sales price (1) (3)	$	51.83		$	64.11		$	57.09		$	60.67
Risk management gain (loss) (2)		(0.64	)		1.20			0.17			1.22
Royalties		(6.03	)		(8.34	)		(7.27	)		(7.71	)
Transportation		(4.49	)		(4.15	)		(4.69	)		(4.05	)
Net operating costs (3)		(13.54	)		(13.83	)		(14.78	)		(13.87	)
Netback (3)	$	27.13		$	38.99		$	30.52		$	36.26
	(boe/d)			(boe/d)			(boe/d)			(boe/d)
Production		28,943			35,773			33,653			35,006

Includes the impact of commodities purchased from and sold to third parties of $0.2 million (2024 – $0.3 million) for the second quarter of 2025 and $0.5 million (2024 – $0.8 million) for the first six months of 2025. See "Production Revenues" below for a reconciliation of "Sales" to "Production revenues".
Realized risk management gains (losses) on commodity contracts.
Non-GAAP ratios. See "Non-GAAP and Other Financial Measures".

The Company's netback decreased in the 2025 periods compared to the 2024 periods due to lower oil prices which led to lower realized prices. Transportation costs were also higher as a result of our increasing Peace River production. Net operating costs were lower in Q2 2025 due to the Pembina Disposition partially offset by our growing Peace River production, which primarily resulted in an overall increase in first half 2025 net operating costs.

OBSIDIAN ENERGY SECOND QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 6
	Three months ended<br>June 30						Six months ended<br>June 30
---	---	---	---	---	---	---	---	---	---	---	---	---
(millions)	2025			2024			2025			2024
Netback:
Sales (1) (3)	$	136.5		$	208.7		$	347.8		$	386.5
Risk management gain (loss) (2)		(1.7	)		4.0			1.0			7.8
Royalties		(15.9	)		(27.1	)		(44.3	)		(49.1	)
Transportation		(11.8	)		(13.5	)		(28.6	)		(25.8	)
Net operating costs (3)		(35.6	)		(45.1	)		(90.0	)		(88.3	)
Netback (3)	$	71.5		$	127.0		$	185.9		$	231.1

Includes the impact of commodities purchased from and sold to third parties of $0.2 million (2024 – $0.3 million) for the second quarter of 2025 and $0.5 million (2024 – $0.8 million) for the first six months of 2025. See "Production Revenues" below for a reconciliation of "Sales" to "Production revenues".
Realized risk management gains (losses) 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<br>June 30						Six months ended<br>June 30
(millions)	2025			2024			2025			2024
Production revenues	$	136.3		$	208.4		$	347.3		$	385.7
Sales of commodities purchased from third parties		1.3			1.7			3.3			5.5
Less: Commodities purchased from third parties		(1.1	)		(1.4	)		(2.8	)		(4.7	)
Sales (1)		136.5			208.7			347.8			386.5
Realized risk management gain (loss) (2)		(1.7	)		4.0			1.0			7.8
Gross revenues (1)	$	134.8		$	212.7		$	348.8		$	394.3

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

The Company's production revenues and gross revenues were lower in the 2025 periods compared to the comparable periods in 2024, mainly due to lower realized oil prices and lower production volumes as a result of the Pembina Disposition early in Q2 2025.

Change in Gross Revenues (1)

(millions)
Gross revenues – January 1 – June 30, 2024	$	394.3
Decrease in liquids production		(15.1	)
Decrease in liquids prices		(23.0	)
Decrease in natural gas production		(3.4	)
Increase in natural gas prices		2.8
Increase in realized oil risk management loss		(1.9	)
Decrease in realized natural gas risk management gain		(4.9	)
Gross revenues – January 1 – June 30, 2025 (2)	$	348.8

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

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

Royalties

	Three months ended<br>June 30						Six months ended<br>June 30
	2025			2024			2025			2024
Royalties (millions)	$	15.9		$	27.1		$	44.3		$	49.1
Average royalty rate (1)		12	%		13	%		13	%		13	%

Excludes effects of risk management activities and other income.

For the 2025 periods, absolute royalties decreased from the comparable 2024 periods which was largely attributed to lower oil prices and lower production in the second quarter of 2025 due to the Pembina Disposition. The average royalty rate remained relatively flat for the 2025 periods compared to the 2024 periods.

Expenses

	Three months ended<br>June 30					Six months ended<br>June 30
(millions)	2025			2024		2025		2024
Net operating (1)	$	35.6		$	45.1	$	90.0	$	88.3
Transportation		11.8			13.5		28.6		25.8
Financing		8.7			12.8		21.4		24.8
Share-based compensation	$	(0.2	)	$	0.9	$	2.7	$	9.9

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<br>June 30						Six months ended<br>June 30
(millions)	2025			2024			2025			2024
Operating costs	$	39.7		$	49.1		$	98.7		$	98.4
Less processing fees		(2.6	)		(2.9	)		(5.4	)		(6.8	)
Less road use recoveries		(1.5	)		(1.7	)		(3.3	)		(3.8	)
Add realized power risk management loss		-			0.6			-			0.5
Net operating costs (1)	$	35.6		$	45.1		$	90.0		$	88.3

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

On an absolute basis, for Q2 2025 both operating and net operating costs were lower than the 2024 comparable period mainly due to our lower production base as a result of the Company closing the Pembina Disposition at the start of the quarter. For the first six months of 2025, operating and net operating costs were roughly flat compared to the 2024 period as our higher production base during Q1 2025 led to higher costs, but was offset by our lower production base in Q2 2025 as a result of the Pembina Disposition.

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 the first six months of 2025 compared to the 2024 period.

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

Financing

Financing expense consists of the following:

	Three months ended<br>June 30				Six months ended<br>June 30
(millions)	2025		2024		2025		2024
Interest	$	5.1	$	7.7	$	12.6	$	14.4
Accretion on decommissioning liability		2.7		4.1		7.3		8.3
Accretion on office lease provision		-		0.1		-		0.3
Accretion on discount of senior unsecured notes		0.1		0.1		0.2		0.2
Accretion on lease liabilities		0.1		0.2		0.2		0.3
Loss on repurchased senior unsecured notes		0.1		-		0.1		0.1
Deferred financing costs		0.6		0.6		1.0		1.2
Financing	$	8.7	$	12.8	$	21.4	$	24.8

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 lower in 2025 compared to 2024 mainly due to lower drawings on our syndicated credit facility following the Pembina Disposition as the proceeds received from the transaction were used to reduce the amount outstanding under our syndicated credit facility.

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). The aggregate amount available under the syndicated credit facility is $235.0 million and the revolving period and maturity dates are set at May 31, 2026 and May 31, 2027, respectively.

At June 30, 2025, the Company had senior unsecured notes outstanding totaling $112.2 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.

In April 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.

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 $48.4 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. For the first six months of 2025, based on free cash flow available and our liquidity estimates we expect to make a $48.4 million Repurchase Offer in August 2025. This amount was recorded within the current portion of long-term debt at June 30, 2025.

At June 30, 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.

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

Share-based compensation expense consisted of the following:

	Three months ended<br>June 30						Six months ended<br>June 30
(millions)	2025			2024			2025			2024
DSUs	$	(1.5	)	$	(1.8	)	$	(1.2	)	$	2.6
PSUs		(1.1	)		0.2			(0.6	)		1.8
NTIP (1)		-			0.2			-			1.1
Liability based incentive plans	$	(2.6	)	$	(1.4	)	$	(1.8	)	$	5.5
RSUs	$	1.9		$	1.7		$	3.6		$	3.4
Options		0.5			0.6			0.9			1.0
Equity based incentive plans		2.4			2.3			4.5			4.4
Share-based compensation	$	(0.2	)	$	0.9		$	2.7		$	9.9

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 June 30, 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 June 30, 2025, the Company's share price closed at $7.58 per share compared to $8.36 per share on December 31, 2024 and $10.24 per share on June 30, 2024 on the TSX.

General and Administrative Expenses ("G&A")

	Three months ended<br>June 30				Six months ended<br>June 30
(millions, except per boe amounts)	2025		2024		2025		2024
Gross	$	9.9	$	10.0	$	20.8	$	20.6
Per boe (1)		3.78		3.06		3.42		3.23
Net (2)		5.0		4.9		10.6		10.4
Per boe (1)	$	1.92	$	1.49	$	1.74	$	1.63

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 the 2025 periods compared to the 2024 periods as staff costs were relatively consistent year-over-year. On a per boe basis, the impact of the Pembina Disposition in Q2 2025 led to higher costs in the 2025 periods compared to the 2024 periods.

Depletion, Depreciation and Impairment

	Three months ended<br>June 30				Six months ended<br>June 30
(millions)	2025		2024		2025		2024
Depletion and depreciation (“D&D”)	$	45.5	$	59.3	$	88.7	$	114.3
PP&E Impairment	$	1.2	$	1.6	$	13.3	$	2.5

The Company’s D&D expense decreased in the 2025 periods compared to the 2024 periods due to a combination of the Pembina Assets being classified as assets held for sale in Q1 2025 and no longer being depleted and then the close of the Pembina Disposition early in Q2 2025, which reduced production levels.

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

Prior to the close of the Pembina Disposition in April 2025, the Company classified these assets as held for sale. In 2025, the Pembina 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 $15.4 million. The impairment expense was recorded as additional depletion, depreciation and impairment on the Consolidated Statements of Income.

During the first six months of 2025, we recorded a $14.2 million impairment reversal (2024 - $2.5 million) in our Legacy cash generating unit ("Legacy CGU") due to a reduction in the decommissioning liability in the area. The Legacy CGU has no recoverable amount, as such changes in our decommissioning liability are expensed or recovered each period.

Taxes

	Three months ended<br>June 30				Six months ended<br>June 30
(millions)	2025		2024		2025		2024
Deferred income tax expense	$	4.3	$	11.7	$	9.3	$	16.0

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<br>June 30				Six months ended<br>June 30
(millions, except per share amounts)	2025		2024		2025		2024
Net income	$	15.3	$	37.1	$	30.7	$	49.0
Basic per share		0.22		0.48		0.43		0.64
Diluted per share	$	0.21	$	0.46	$	0.41	$	0.61

Net income was lower in the 2025 periods as a result of the Company's lower production revenues due to lower realized oil prices and lower production volumes as a result of the Pembina Disposition early in Q2 2025. This was partially offset by lower depletion and depreciation expense from the combination of the Pembina Assets being classified as assets held for sale in Q1 2025 and no longer being depleted and the subsequent closing of the Pembina Disposition in early Q2 2025.

Capital Expenditures

	Three months ended<br>June 30					Six months ended<br>June 30
(millions)	2025			2024		2025			2024
Drilling and completions	$	14.6		$	37.7	$	102.4		$	129.0
Well equipping and facilities		25.0			21.2		58.8			43.9
Land and geological/geophysical		0.5			-		6.9			-
Corporate		0.1			0.3		0.5			0.6
Capital expenditures	$	40.2		$	59.2	$	168.6		$	173.5
Property acquisitions, net		(210.9	)		84.9		(210.9	)		84.9
Total	$	(170.7	)	$	144.1	$	(42.3	)	$	258.4

Capital expenditures in Q2 2025 focused on bringing wells on production from our active development program in Peace River earlier in the year. Overall, capital expenditures were lower in Q2 2025 than Q2 2024 as we moderated capital spending in the period in response to lower commodity prices and volatility in commodity markets.

For the first six months of 2025, 39 (34.6 net) wells were brought on production, including operated and non-operated activities, which included 30 (28.4 net) wells in Peace River and 9 (6.2 net) wells in the Cardium.

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

Drilling

	Six months ended June 30
	2025				2024
(number of wells)	Gross		Net		Gross		Net
Oil		35		31		41		33
Gas		-		-		4		1
Injectors, stratigraphic and service		2		2		7		6
Total		37		33		52		40

The Company drilled 32 (30.4 net) operated wells, including injectors, during the first six months of 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.

Liquidity and Capital Resources

Net Debt

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

	As at
(millions)	June 30, 2025			December 31, 2024
Long-term debt
Syndicated credit facility	$	114.0		$	225.0
Senior unsecured notes		112.2			114.2
Unamortized discount of senior unsecured notes		(0.9	)		(1.1	)
Deferred financing costs		(2.5	)		(2.7	)
Total		222.8			335.4
Working capital deficiency
Cash		(1.6	)		-
Accounts receivable		(68.1	)		(88.0	)
Prepaid expenses and other		(14.4	)		(12.0	)
Bank overdraft		-			0.5
Accounts payable and accrued liabilities		131.5			175.8
Total		47.4			76.3
Net debt (1)	$	270.2		$	411.7

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

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

Net debt decreased compared to December 31, 2024, as a result of lower drawings under our syndicated credit facility and decreased working capital deficiency as our development program moderated in Q2 2025. 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.

Liquidity

The Company currently has a reserve-based syndicated credit facility with a borrowing limit of $235.0 million and senior unsecured notes totaling $112.2 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.

Investment in InPlay

On April 7, 2025, the Company closed the Pembina disposition. As part of the consideration, the Company received 9,139,784 InPlay Shares. The Company has classified our investment in InPlay as held for sale which is measured at the lower of carrying value and fair value less costs to sell. The initial valuation of the InPlay Shares was based on InPlay's closing share price on April 7, 2025 of $8.34 per share and classified as held for sale as we do not intend to be long term shareholders.

During Q2 2025, InPlay paid a cash dividend of $0.09 per common share per month, resulting in the Company receiving $2.5 million during the period. The dividends received from InPlay were recorded within other income.

Subsequent to June 30, 2025, the Company announced that a third party made a non-binding offer to Obsidian Energy to acquire the Company’s entire common share position in InPlay, consisting of 9,139,784 InPlay Shares, at a price per InPlay Share in excess of the $9.59 closing price for such shares on the TSX as of July 15, 2025. The Company has entered into negotiations with the third party and InPlay in respect of the potential transaction outlined in the non-binding offer and has agreed to engage exclusively with the third party in respect of the potential transaction until August 1, 2025.

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

Financial Instruments

Obsidian Energy had the following financial instruments outstanding as at June 30, 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 (bbl/d)		Remaining Term		Fair value <br>(millions)
Oil
WTI Swap		12,375	July 2025		$	(0.7	)
WTI Swap		8,500	August 2025			1.4
WTI Swap		4,500	September 2025			1.4
WCS Differential		1,750	Q3 2025	)		(0.6	)
WCS Differential		6,000	July - December 2025	)		(3.8	)
MSW Differential		500	Q3 2025	)	$	(0.2	)
Total oil					$	(2.5	)
	Notional<br>Volume (mcf/d)		Remaining Term		Fair value (millions)
Natural Gas
AECO Swap		25,118	July 2025 - October 2025		$	2.7
AECO Swap		13,033	November 2025 - March 2026			0.3
AECO Collar		1,896	July 2025 - October 2025		$	0.2
Total natural gas					$	3.2
Total					$	0.7

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 June 30, 2025.

Based on commodity prices and contracts in place at June 30, 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 $2.1 million; and
a $0.10 change in the price per mcf of natural gas would change pre-tax unrealized risk management by $0.5 million.

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

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

	Three months ended<br>June 30						Six months ended<br>June 30
(millions)	2025			2024			2025			2024
Realized
Settlement of oil contracts loss	$	(2.1	)	$	(0.4	)	$	(2.3	)	$	(0.4	)
Settlement of natural gas contracts gain		0.4			4.4			3.3			8.2
Total realized risk management gain (loss)	$	(1.7	)	$	4.0		$	1.0		$	7.8
Unrealized
Oil contracts gain (loss)	$	4.5		$	0.2		$	(5.8	)	$	(0.1	)
Natural gas contracts gain (loss)		4.3			2.8			(0.6	)		(1.2	)
Total unrealized risk management gain (loss)		8.8			3.0			(6.4	)		(1.3	)
Risk management gain (loss)	$	7.1		$	7.0		$	(5.4	)	$	6.5

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 June 30, 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)	$	48.4	$	-	$	177.8	$	-	$	-	$	-	$	226.2
Transportation		8.6		15.7		12.9		12.0		12.1		5.7		67.0
Interest obligations		10.2		20.3		16.3		-		-		-		46.8
Lease liability		0.8		1.5		1.3		0.6		-		1.2		5.4
Decommissioning liability (2)		14.9		13.0		12.0		11.2		10.4		44.0		105.5
Total	$	82.9	$	50.5	$	220.3	$	23.8	$	22.5	$	50.9	$	450.9

The 2025 figure includes the current portion of our senior unsecured notes, which are expected to be subject to a Repurchase Offer pursuant to the terms of the notes. The 2027 figure includes our syndicated credit facility which has a term-out date of May 2027 and our senior unsecured notes not subject to the Repurchase Offer due in July 2027. Refer to the Financing section above for further details. Historically, the Company has successfully renewed our syndicated credit facility.
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 SECOND QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 15

At June 30, 2025, the Company had an aggregate of $112.2 million in senior unsecured notes maturing in July 2027 and the revolving period of our syndicated credit facility was May 31, 2026, with a term out period to May 31, 2027. 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 June 30, 2025	67,708,673
Issuance under stock option and restricted and performance share unit plans	9,330
Repurchase and cancellation of common shares	(615,800	)
As at July 29, 2025	67,102,203
Options outstanding:
As at June 30, 2025	2,461,908
Exercised	(9,330	)
Forfeited	(810	)
As at July 29, 2025	2,451,768
RSUs outstanding:
As at June 30, 2025	1,877,838
Forfeited	(84,838	)
As at July 29, 2025	1,793,000
OBSIDIAN ENERGY SECOND QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 16
---	---

Supplemental Production Disclosure

Outlined below is production by product type for each area and in total for the three and six months ended June 30, 2025 and 2024.

	Three months ended<br>June 30				Six months ended<br>June 30
Daily production (boe/d)	2025		2024		2025		2024
Cardium
Light oil (bbl/d)		5,568		12,039		8,684		11,662
Heavy oil (bbl/d)		24		67		49		57
NGLs (bbl/d)		2,107		3,099		2,546		2,892
Natural gas (mmcf/d)		41		63		50		62
Total production (boe/d)		14,462		25,702		19,687		24,880
Peace River
Light oil (bbl/d)		11		-		6		-
Heavy oil (bbl/d)		11,910		6,838		11,303		6,701
NGLs (bbl/d)		16		9		15		11
Natural gas (mmcf/d)		5		2		5		3
Total production (boe/d)		12,827		7,222		12,221		7,254
Viking
Light oil (bbl/d)		663		1,685		743		1,700
Heavy oil (bbl/d)		79		87		85		91
NGLs (bbl/d)		41		59		43		60
Natural gas (mmcf/d)		3		4		3		4
Total production (boe/d)		1,338		2,538		1,428		2,521
Legacy
Light oil (bbl/d)		72		58		70		68
Heavy oil (bbl/d)		28		34		30		38
NGLs (bbl/d)		25		26		24		26
Natural gas (mmcf/d)		1		2		2		1
Total production (boe/d)		316		311		317		351
Total
Light oil (bbl/d)		6,314		13,782		9,503		13,430
Heavy oil (bbl/d)		12,041		7,026		11,467		6,887
NGLs (bbl/d)		2,189		3,193		2,628		2,989
Natural gas (mmcf/d)		50		71		60		70
Total production (boe/d)		28,943		35,773		33,653		35,006
OBSIDIAN ENERGY SECOND QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 17
---	---

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

	Jun. 30			Mar. 31			Dec. 31			Sep. 30			Jun. 30			Mar. 31			Dec. 31			Sep. 30
Three months ended	2025			2025			2024			2024			2024			2024			2023			2023
Cash flow from operating activities	$	55.2		$	96.7		$	115.0		$	110.3		$	77.9		$	58.7		$	117.7		$	95.3
Change in non-cash working capital		4.3			(5.8	)		(13.5	)		6.1			29.7			13.4			(30.3	)		(3.6	)
Decommissioning expenditures		4.0			6.6			3.5			6.3			4.0			10.1			7.7			5.3
Onerous office lease settlements		-			0.7			2.3			2.2			2.2			2.3			2.3			2.2
Settlement of restricted share units		-			-			-			-			-			-			0.1			0.1
Deferred financing costs		(0.6	)		(0.4	)		(0.5	)		(0.6	)		(0.6	)		(0.6	)		(0.6	)		(0.6	)
Restructuring		0.7			0.1			-			-			-			-			-			-
Transaction costs		2.2			2.2			-			-			1.4			-			-			-
Other expenses		-			-			0.9			0.4			0.6			0.5			0.1			0.2
Funds flow from operations	$	65.8		$	100.1		$	107.7		$	124.7		$	115.2		$	84.4		$	97.0		$	98.9

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 April 1, 2025 and ending on June 30, 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 SECOND QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 18

“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.

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

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.

“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 growth in production of our Peace River assets through further development and delineation of existing and establishing new fields in such areas; 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; the Company's intention to generate acceptable returns and maintain our financial strength; monetization options for our InPlay Share position including the non-binding offer received and ongoing negotiations in connection therewith; our expectations for the NCIB in 2025; potential US imposed tariffs and the anticipated impact on the global economy and commodity markets; anticipated increased output from OPEC and the expected impacts on commodity prices; our environmental remediation efforts; our intention to monitor our operations for environmental impacts and allocate capital to reclamation and other activities in the areas we operate; our intention to follow the Alberta Energy Regulator

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

guidance under Directive 088; 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 involvement with various litigation in the normal course of business and the anticipated effects thereof; 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 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.

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, including with respect to our InPlay Shares); 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.

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

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 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

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

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.ca and in the United States at www.sec.gov. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

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 SECOND QUARTER 2025	MANAGEMENT’S DISCUSSION AND ANALYSIS 23

EX-99.3

Exhibit 99.3

Obsidian Energy Ltd.

Consolidated Balance Sheets

		As at
(CAD millions, unaudited)	Note	June 30, 2025			December 31, 2024
Assets
Current
Cash		$	1.6		$	-
Accounts receivable			68.1			88.0
Risk management	8		6.0			8.4
Prepaid expenses and other			14.4			12.0
Assets held for sale	4		76.2			383.7
			166.3			492.1
Non-current
Property, plant and equipment	3		1,431.7			1,349.2
Deferred income tax	12		264.0			273.3
			1,695.7			1,622.5
Total assets		$	1,862.0		$	2,114.6
Liabilities and Shareholders’ Equity
Current
Bank overdraft		$	-		$	0.5
Accounts payable and accrued liabilities			131.5			175.8
Current portion of long-term debt	5		48.4			3.0
Current portion of lease liabilities	6		1.8			2.1
Current portion of provisions	7		21.4			20.4
Risk management	8		5.3			1.3
Liabilities related to assets held for sale	4		-			72.2
			208.4			275.3
Non-current
Long-term debt	5		174.4			332.4
Lease liabilities	6		2.7			4.5
Provisions	7		84.1			96.0
Other non-current liabilities			-			0.6
			469.6			708.8
Shareholders’ equity
Shareholders’ capital	10		2,090.8			2,135.2
Other reserves			108.9			108.6
Deficit			(807.3	)		(838.0	)
			1,392.4			1,405.8
Total liabilities and shareholders’ equity		$	1,862.0		$	2,114.6

Subsequent events (Note 4, 8 and 10)

Commitments and contingencies (Note 13)

See accompanying notes to the unaudited interim consolidated financial statements.

OBSIDIAN ENERGY SECOND QUARTER 2025	INTERIM CONSOLIDATED FINANCIAL STATEMENTS 1

Obsidian Energy Ltd.

Consolidated Statements of Income

		Three months ended<br>June 30						Six months ended<br>June 30
(CAD millions, except per share amounts, unaudited)	Note	2025			2024			2025			2024
Production revenues	9	$	136.3		$	208.4		$	347.3		$	385.7
Processing fees	9		2.6			2.9			5.4			6.8
Royalties			(15.9	)		(27.1	)		(44.3	)		(49.1	)
Sales of commodities purchased from third parties			1.3			1.7			3.3			5.5
			124.3			185.9			311.7			348.9
Other income	9		3.9			1.7			5.7			3.8
Risk management gain (loss)	8		7.1			7.0			(5.4	)		6.5
			135.3			194.6			312.0			359.2
Expenses
Operating			39.7			49.1			98.7			98.4
Transportation			11.8			13.5			28.6			25.8
Commodities purchased from third parties			1.1			1.4			2.8			4.7
General and administrative			5.0			4.9			10.6			10.4
Share-based compensation	11		(0.2	)		0.9			2.7			9.9
Depletion, depreciation and impairment	3		46.7			60.9			102.0			116.8
Financing	5		8.7			12.8			21.4			24.8
Risk management loss	8		-			0.3			-			0.9
Restructuring			0.7			-			0.8			-
Transaction costs	4		2.2			1.4			4.4			1.4
Other			-			0.6			-			1.1
			115.7			145.8			272.0			294.2
Income before taxes			19.6			48.8			40.0			65.0
Deferred income tax	12		4.3			11.7			9.3			16.0
Net and comprehensive income		$	15.3		$	37.1		$	30.7		$	49.0
Net income per share
Basic		$	0.22		$	0.48		$	0.43		$	0.64
Diluted		$	0.21		$	0.46		$	0.41		$	0.61
Weighted average shares outstanding (millions)
Basic	10		70.1			76.5			71.8			76.9
Diluted	10		73.3			79.8			74.4			79.8

See accompanying notes to the unaudited interim consolidated financial statements.

OBSIDIAN ENERGY SECOND QUARTER 2025	INTERIM CONSOLIDATED FINANCIAL STATEMENTS 2

Obsidian Energy Ltd.

Consolidated Statements of Cash Flows

		Three months ended<br>June 30						Six months ended<br>June 30
(CAD millions, unaudited)	Note	2025			2024			2025			2024
Operating activities
Net income		$	15.3		$	37.1		$	30.7		$	49.0
Depletion, depreciation and impairment	3		46.7			60.9			102.0			116.8
Financing	5		3.6			5.1			8.8			10.4
Share-based compensation	11		2.4			2.3			4.5			4.4
Unrealized risk management loss (gain)	8		(8.8	)		(3.3	)		6.4			1.7
Deferred income tax	12		4.3			11.7			9.3			16.0
Decommissioning expenditures	7		(4.0	)		(4.0	)		(10.6	)		(14.1	)
Onerous office lease settlements			-			(2.2	)		(0.7	)		(4.5	)
Change in non-cash working capital			(4.3	)		(29.7	)		1.5			(43.1	)
			55.2			77.9			151.9			136.6
Investing activities
Capital expenditures	3		(40.2	)		(59.2	)		(168.6	)		(173.5	)
Property acquisitions	3		-			(84.9	)		-			(84.9	)
Property dispositions	3		210.9			-			210.9			-
Change in non-cash working capital			(59.3	)		(23.6	)		(28.6	)		(12.4	)
			111.4			(167.7	)		13.7			(270.8	)
Financing activities
Increase (decrease) in long-term debt	5		(125.5	)		50.0			(111.0	)		110.0
Issuance of term loan			-			50.0			-			50.0
Repayment of senior unsecured notes	5		(2.0	)		-			(2.0	)		(3.2	)
Financing fees paid			(0.9	)		(1.4	)		(0.9	)		(1.4	)
Lease liabilities settlements	6		(0.5	)		(0.5	)		(1.1	)		(1.0	)
Exercised compensation plans			0.2			0.4			(1.6	)		(1.2	)
Repurchase of common shares	10		(36.6	)		(8.7	)		(46.2	)		(19.2	)
Tax paid on repurchase of common shares			-			-			(0.7	)		-
			(165.3	)		89.8			(163.5	)		134.0
Change in cash and cash equivalents			1.3			-			2.1			(0.2	)
Cash and cash equivalents (overdraft), beginning of period			0.3			0.3			(0.5	)		0.5
Cash and cash equivalents, end of period		$	1.6		$	0.3		$	1.6		$	0.3
Supplementary information
Cash interest paid		$	2.0		$	4.2		$	13.0		$	14.4

See accompanying notes to the unaudited interim consolidated financial statements.

OBSIDIAN ENERGY SECOND 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			-			-			30.7			30.7
Share-based compensation	11		-			4.5			-			4.5
Issued on exercise of equity compensation plans	10		2.6			(4.2	)		-			(1.6	)
Repurchase of common shares for cancellation	10		(46.2	)		-			-			(46.2	)
Tax on repurchases of common shares	10		(0.8	)		-			-			(0.8	)
Balance at June 30, 2025		$	2,090.8		$	108.9		$	(807.3	)	$	1,392.4
(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			-			-			49.0			49.0
Share-based compensation	11		-			4.4			-			4.4
Issued on exercise of equity compensation plans	10		2.5			(3.7	)		-			(1.2	)
Repurchase of common shares for cancellation	10		(19.2	)		-			-			(19.2	)
Tax on repurchases of common shares	10		(0.3	)		-			-			(0.3	)
Balance at June 30, 2024		$	2,158.1		$	104.8		$	(586.4	)	$	1,676.5

See accompanying notes to the unaudited interim consolidated financial statements.

OBSIDIAN ENERGY SECOND QUARTER 2025	INTERIM CONSOLIDATED FINANCIAL STATEMENTS 4

Notes to the Unaudited Interim Consolidated Financial Statements

(All tabular amounts are in millions of Canadian dollars 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.

These interim consolidated financial statements were approved for issuance by the Board of Directors on July 29, 2025.

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

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

Oil and Gas assets/ Facilities, Corporate assets

Cost	Six months ended<br>June 30, 2025			Year ended<br>December 31, 2024
Balance, beginning of period	$	8,417.0		$	11,223.8
Capital expenditures (1)		149.0			343.1
Property acquisitions		14.7			84.9
Property dispositions		-			(1.5	)
Transfer to assets held for sale		-			(3,256.0	)
Net decommissioning changes		(5.4	)		22.7
Balance, end of period	$	8,575.3		$	8,417.0

Capital expenditures totaled $168.6 million including $19.6 million associated with the disposed Pembina assets.

Accumulated depletion and depreciation	Six months ended<br>June 30, 2025			Year ended<br>December 31, 2024
Balance, beginning of period	$	7,073.2		$	9,287.0
Depletion and depreciation		87.8			245.3
Impairment (reversal)		(14.1	)		415.3
Transfer to assets held for sale		-			(2,874.4	)
Balance, end of period	$	7,146.9		$	7,073.2
			As at
---	---	---	---	---
Net book value	June 30, 2025		December 31, 2024
Total	$	1,428.4	$	1,343.8

Right-of-use assets

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

Cost	Six months ended<br>June 30, 2025			Year ended<br>December 31, 2024
Balance, beginning of period	$	14.8		$	14.8
Additions (dispositions)		(1.2	)		-
Balance, end of period	$	13.6		$	14.8
Accumulated amortization	Six months ended<br>June 30, 2025		Year ended<br>December 31, 2024
---	---	---	---	---
Balance, beginning of period	$	9.4	$	7.6
Amortization		0.9		1.8
Balance, end of period	$	10.3	$	9.4
			As at
---	---	---	---	---
Net book value	June 30, 2025		December 31, 2024
Total	$	3.3	$	5.4
OBSIDIAN ENERGY SECOND QUARTER 2025	NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS 6
---	---

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	June 30, 2025		December 31, 2024
Oil and Gas assets/Facilities, Corporate assets	$	1,428.4	$	1,343.8
Right-of-use assets		3.3		5.4
Total	$	1,431.7	$	1,349.2

At June 30, 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 six months of 2025, we recorded a $14.2 million impairment reversal (2024 - $2.5 million) in our Legacy CGU due to a reduction in the decommissioning liability in the area. The Legacy CGU has no recoverable amount, as such changes in our decommissioning liability are expensed or recovered each period.

Assets and liabilities held for sale

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

			As at
	June 30, 2025		December 31, 2024
Assets held for sale
Prepaid expenses and other	$	-	$	2.1
Investment in InPlay Oil Corp.		76.2		-
Property, plant and equipment		-		381.6
	$	76.2	$	383.7
Liabilities related to assets held for sale
Current portion of decommissioning liability	$	-	$	5.8
Non-current portion of decommissioning liability		-		66.4
	$	-	$	72.2

On April 7, 2025, the Company closed the disposition (the "Pembina Disposition") of our operated Pembina assets (the "Pembina Assets") to InPlay Oil Corp. ("InPlay"). Total consideration for the transaction included approximately $211 million of cash (inclusive of interim closing adjustments), 9,139,784 million common shares of InPlay ("InPlay Shares") and a $15 million value associated with acquiring InPlay's 34.6 percent interest in the Willesden Green Cardium Unit #2 property.

On close of the transaction, the Company classified our InPlay Shares as held for sale resulting in the investment being measured at the lower of its carrying value and fair value less costs to sell. The valuation of the InPlay Shares was based on InPlay's closing share price on April 7, 2025 of $8.34 per InPlay Share which compared to $9.01 per InPlay Share at June 30, 2025 (Level 1 fair value).

In 2025, prior to the close of the Pembina Disposition, the Company had classified the Pembina assets as held for sale. The Pembina 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 $27.4 million, which included an impairment loss of $15.4 million in the second quarter of 2025, primarily due to the decrease in value of the InPlay Shares at closing.

These impairment expenses were recorded as additional depletion, depreciation and impairment on the Consolidated Statements of Income.

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

The Company has entered into negotiations with the third party and InPlay in respect of the potential transaction outlined in the non-binding offer and has agreed to engage exclusively with the third party in respect of the potential transaction until August 1, 2025.

Long-term debt

			As at
			December 31, 2024
Syndicated credit facility	114.0		$	225.0
Senior unsecured notes
11.95% 112.2 million, maturing July 27, 2027	112.2			114.2
Total	226.2			339.2
Unamortized discount of senior unsecured notes	(0.9	)		(1.1	)
Deferred financing costs	(2.5	)		(2.7	)
Total long-term debt	222.8		$	335.4
Current portion	48.4		$	3.0
Non-current portion	174.4		$	332.4

All values are in US Dollars.

In April 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.

OBSIDIAN ENERGY SECOND QUARTER 2025	NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS 8

Financing expense consists of the following:

	Three months ended<br>June 30				Six months ended<br>June 30
	2025		2024		2025		2024
Interest	$	5.1	$	7.7	$	12.6	$	14.4
Accretion on decommissioning liability		2.7		4.1		7.3		8.3
Accretion on office lease provision		-		0.1		-		0.3
Accretion on discount of senior unsecured notes		0.1		0.1		0.2		0.2
Accretion on lease liabilities		0.1		0.2		0.2		0.3
Loss on repurchased senior unsecured notes		0.1		-		0.1		0.1
Deferred financing costs		0.6		0.6		1.0		1.2
Financing	$	8.7	$	12.8	$	21.4	$	24.8

Lease liabilities

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

	Six months ended<br>June 30, 2025			Year ended<br>December 31, 2024
Balance, beginning of period	$	6.6		$	8.0
Additions (dispositions)		(1.2	)		-
Accretion charges		0.2			0.6
Lease payments		(1.1	)		(2.0	)
Balance, end of period	$	4.5		$	6.6
Current portion	$	1.8		$	2.1
Non-current portion	$	2.7		$	4.5

Provisions

	As at
	June 30, 2025		December 31, 2024
Decommissioning liability	$	105.5	$	115.7
Office lease provision (1)		-		0.7
Total	$	105.5	$	116.4
Current portion	$	21.4	$	20.4
Non-current portion	$	84.1	$	96.0

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

Decommissioning liability

At June 30, 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. At June 30, 2025, the total decommissioning liability on an undiscounted, uninflated basis was $317.2 million (December 31, 2024 - $357.0 million).

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

Changes to the decommissioning liability were as follows:

	Six months ended<br>June 30, 2025			Year ended<br>December 31, 2024
Balance, beginning of period	$	115.7		$	172.6
Net liabilities added (1)		0.3			2.0
Acquisition		-			0.4
Increase (decrease) due to changes in estimates		(6.3	)		20.3
Liabilities settled		(10.6	)		(23.9	)
Transfers to liabilities for assets held for sale		(0.9	)		(72.2	)
Accretion charges		7.3			16.5
Balance, end of period	$	105.5		$	115.7
Current portion	$	21.4		$	19.7
Non-current portion	$	84.1		$	96.0

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

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 June 30, 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 June 30, 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)	Six months ended<br>June 30, 2025			Year ended<br>December 31, 2024
Balance, beginning of period	$	7.1		$	11.8
Unrealized gain (loss) on financial instruments:
Oil		(5.8	)		3.3
Natural gas		(0.6	)		(8.5	)
Electricity		-			0.5
Total fair value, end of period	$	0.7		$	7.1
Current asset portion	$	6.0		$	8.4
Current liability portion	$	(5.3	)	$	(1.3	)

Obsidian Energy had the following financial instruments outstanding as at June 30, 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.

OBSIDIAN ENERGY SECOND QUARTER 2025	NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS 10
	Notional<br>Volume (bbl/d)		Remaining Term			Fair value <br>(millions)
---	---	---	---	---	---	---	---	---
Oil
WTI Swap		12,375	July 2025			$	(0.7	)
WTI Swap		8,500	August 2025				1.4
WTI Swap		4,500	September 2025				1.4
WCS Differential		1,750	Q3 2025		)		(0.6	)
WCS Differential		6,000	July - December 2025		)		(3.8	)
MSW Differential		500	Q3 2025		)	$	(0.2	)
Total oil						$	(2.5	)
	Notional<br>Volume (mcf/d)		Remaining Term			Fair value (millions)
Natural Gas
AECO Swap		25,118	July 2025 - October 2025			$	2.7
AECO Swap		13,033	November 2025 - March 2026				0.3
AECO Collar		1,896	July 2025 - October 2025			$	0.2
Total natural gas						$	3.2
Total						$	0.7

All values are in US Dollars.

Subsequent to June 30, 2025, the Company entered into the following additional financial instruments:

	Notional<br>Volume (bbl/d)		Remaining Term
Oil
WTI Swap		3,250	August 2025
WTI Swap		5,000	September 2025
WTI Swap		7,500	October 2025
WTI Swap		4,500	November 2025
WTI Swap		4,000	December 2025
	Notional<br>Volume (mcf/d)		Remaining Term
Natural Gas
AECO Swap		6,635	April 2026 - October 2026

All values are in US Dollars.

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

	Three months ended<br>June 30						Six months ended<br>June 30
	2025			2024			2025			2024
Realized
Settlement of oil contracts loss	$	(2.1	)	$	(0.4	)	$	(2.3	)	$	(0.4	)
Settlement of natural gas contracts gain		0.4			4.4			3.3			8.2
Total realized risk management gain (loss)	$	(1.7	)	$	4.0		$	1.0		$	7.8
Unrealized
Oil contracts gain (loss)	$	4.5		$	0.2		$	(5.8	)	$	(0.1	)
Natural gas contracts gain (loss)		4.3			2.8			(0.6	)		(1.2	)
Total unrealized risk management gain (loss)		8.8			3.0			(6.4	)		(1.3	)
Risk management gain (loss)	$	7.1		$	7.0		$	(5.4	)	$	6.5
OBSIDIAN ENERGY SECOND QUARTER 2025	NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS 11
---	---

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.

Revenue and Other Income

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

	Three months ended<br>June 30				Six months ended<br>June 30
	2025		2024		2025		2024
Oil	$	119.2	$	185.6	$	301.6	$	335.0
NGLs		7.9		14.2		22.7		27.0
Natural gas		9.2		8.6		23.0		23.7
Production revenues		136.3		208.4		347.3		385.7
Processing fees		2.6		2.9		5.4		6.8
Oil and natural gas sales		138.9		211.3		352.7		392.5
Other income		3.9		1.7		5.7		3.8
Oil and natural gas sales and other income	$	142.8	$	213.0	$	358.4	$	396.3

Other income consists of road use income and dividends received from our investment in InPlay. During the second quarter of 2025, InPlay paid a cash dividend of $0.09 per common share per month, resulting in the Company receiving $2.5 million during the period.

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)	557,575			2.6
Repurchase of common shares for cancellation	(6,533,704	)		(46.2	)
Tax on repurchases of common shares (2)	-			(0.8	)
Balance, June 30, 2025	67,708,673		$	2,090.8

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.

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

Pursuant to our return of capital initiative to our shareholders, the Company has a normal course issuer bid ("NCIB") with the 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 six months of 2025, the Company utilized the NCIB which resulted in 6,533,704 common shares being repurchased and canceled at an average price of $7.06 per share for total consideration of $46.2 million. The total consideration paid includes commissions and fees and is recorded as a reduction to Shareholders' Equity.

Subsequent to June 30, 2025 and up to July 29, 2025, the Company repurchased and cancelled an additional 615,800 common shares at an average price of $8.01 per share for total consideration of $4.9 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<br>June 30				Six months ended<br>June 30
Average shares outstanding (millions)	2025		2024		2025		2024
Basic		70.1		76.5		71.8		76.9
Dilutive impact (1)		3.2		3.3		2.6		2.9
Diluted		73.3		79.8		74.4		79.8

Includes impact of stock options and restricted share units.

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<br>June 30						Six months ended<br>June 30
	2025			2024			2025			2024
DSUs	$	(1.5	)	$	(1.8	)	$	(1.2	)	$	2.6
PSUs		(1.1	)		0.2			(0.6	)		1.8
NTIP (1)		-			0.2			-			1.1
Liability based incentive plans	$	(2.6	)	$	(1.4	)	$	(1.8	)	$	5.5
RSUs	$	1.9		$	1.7		$	3.6		$	3.4
Options		0.5			0.6			0.9			1.0
Equity based incentive plans		2.4			2.3			4.5			4.4
Share-based compensation	$	(0.2	)	$	0.9		$	2.7		$	9.9

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 June 30, 2025.

The share price used in the fair value calculation of the DSU and PSU obligations at June 30, 2025 was $7.58 per share compared to $8.36 per share on December 31, 2024 and $10.24 per share on June 30, 2024. The weighted average trading price of the Company's common shares was $7.40 for the first six months of 2025 (2024 - $10.09).

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

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	855,290		713,910
Vested (1)	(520,950	)	(363,484	)
Forfeited	(16,065	)	(80,905	)
Outstanding, end of period	1,877,838		1,559,563

Vested RSUs settled in shares.

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

	Six months ended June 30
	2025			2024
Average fair value of RSUs granted (per RSU)	$	7.50		$	9.65
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	438,140		271,940
Vested (1)	(124,610	)	(532,720	)
Outstanding, end of period	949,440		635,910

Vested PSUs settled in cash.

	As at
PSU liability	June 30, 2025		December 31, 2024
Current	$	-	$	1.5
Non-current		-		0.6
Total	$	-	$	2.1
OBSIDIAN ENERGY SECOND QUARTER 2025	NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS 14
---	---

Option Plan

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

	Six months ended<br>June 30, 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		521,070			7.46		336,210			9.65
Exercised (1)		(296,852	)		1.16		(401,579	)		1.39
Forfeited		(2,430	)		9.65		-			-
Outstanding, end of period		2,461,908		$	5.61		2,240,120		$	4.59
Exercisable, end of period		1,623,707		$	4.19		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:

	Six months ended June 30
	2025			2024
Average fair value of Options granted (per Option)	$	4.35		$	6.41
Expected volatility		69.5	%		76.7	%
Expected life of Options (years)		4.8			4.5
Expected forfeiture rate		0.1	%		0.2	%

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	Six months ended<br>June 30, 2025		Year ended<br>December 31, 2024
Outstanding, beginning of period		1,960,272		1,893,280
Granted		47,709		66,992
Outstanding, end of period		2,007,981		1,960,272
	As at
---	---	---	---	---
DSU Liability	June 30, 2025		December 31, 2024
Current	$	15.3	$	16.5
Total	$	15.3	$	16.5

At June 30, 2025, the Company had no outstanding DSUs that were redeemable.

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

Deferred income tax asset

	Six months ended<br>June 30, 2025			Year ended<br>December 31, 2024
Balance, beginning of period	$	273.3		$	210.8
Deferred income tax (expense) recovery		(9.3	)		62.5
Balance, end of period	$	264.0		$	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.

OBSIDIAN ENERGY SECOND QUARTER 2025	NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS 16

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 June 30, 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 April 1, 2025 and ended on June 30, 2025 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: July 30, 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 June 30, 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 April 1, 2025 and ended on June 30, 2025 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: July 30, 2025

(signed) “Peter Scott”

_______________________

Peter Scott

Senior Vice President and Chief Financial Officer