Obsidian Energy: Under-The-Radar Oil Play Offering Large Upside

Obsidian Energy is rated a Strong Buy, driven by elevated WTI prices, improved balance sheet, and significant buyback potential. OBE's hedge book limits near-term upside, but declining hedges and higher oil prices position H2 2026 as a catalyst for earnings growth. Recent asset sales and debt reduction have strengthened OBE's financials, enabling aggressive share repurchases and further deleveraging.