09:44 AM EDT, 05/29/2024 (MT Newswires) -- Stifel FirstEnergy on Wednesday reiterated its buy rating on the shares of Obsidian Energy ( OBE ) and its C$14.00 price target after the company acquired northern Alberta oil assets.

"OBE announced a $76 mm (all-cash) Peace River acquisition that comes with ~1,700 bbl/d (100% oil) and 148 net sections of land within OBE's core Peace River region. The acquisition comes with ~200 identified drilling locations that are predominantly prospective for the Clearwater in the Peavine region and at Gift Lake. A concurrent operational update highlighted better than expected current production of 35,500 boe/d, and total productive capacity of ~40,000 bbl/d when including volumes offline with the Woodland Cree First Nations (WCFN) blockade. Updating our outlook we show OBE's leverage/debt profile moving modestly higher; however, more importantly, we see a more meaningful move in proforma FCF and resource expansion opportunities ahead. We are reaffirming our target price of $14.00/sh and BUY recommendation, analyst Cody Kwong noted.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 10.30, Change: +0.14, Percent Change: +1.38