08:30 AM EDT, 07/30/2025 (MT Newswires) -- Obsidian Energy ( OBE ) on Wednesday said its second-quarter profit fell by more than half on lower oil and gas production following the sale of some Alberta assets and weaker prices.

The company said it earned $15.3 million, or $0.21 per share, in the period, down from $37.1 million, or $0.46, in the year-prior quarter. The result missed the FactSet consensus for earnings per share of $0.23.

Funds from operations dropped 43% to $65.8 million, or $0.90, from $115.2 million, or $1.44, topping its guidance target of $60 million. Revenue was not disclosed.

Oil and gas production fell by about a fifth to 28,943 barrels of oil equivalent per day, from 35,773, while its average gross profit per barrel equivalent dropped to $27.13 from $38.99.

The drop follows on the $320-million sale of the company's properties in Alberta's Pembina region that closed in April. The properties produced 18,750 boe/d.

"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," chief executive Stephen Loukas said in a release.

Obsidian shares closed up $0.27 to $8.57 Tuesday on the Toronto Stock Exchange.