08:44 AM EDT, 05/07/2025 (MT Newswires) -- Obsidian Energy ( OBE ) edged up in pre-market New York trading after the company on Wednesday said its first-quarter profit rose 29% on higher oil and gas production, while it lowered first-half guidance due to weakening oil prices.

The company said it earned $15.4 million, or $0.20 per share, in the period, up from $11.9 million, or $0.15, in the year-prior quarter.

Cash flow rose 65% to $96.7 million, or $1.27, from $58.7 million, or $0.73. Revenue was not disclosed.

Obsidian said its oil and gas production rose to 38,416 barrels of oil equivalent per day from 34,238, while its average gross profit per barrel equivalent eased to $33.10 from $33.40.

The company said it concentrated capital spending in the quarter on its Peace River, Alberta, heavy oil operations following the $301-million sale of Alberta light-oil assets to InPlay Oil (IPO.TO) that closed in April. With oil prices sagging after OPEC+ announced plans to hike supply to market amid slowing global growth following the U.S. tariff wars, it expects to cut capital spending and direct cash flow to share buybacks while reducing debt.

"Given the significant discount that we believe our shares trade to our intrinsic value, we will re-allocate capital to a combination of incremental stock repurchases and additional debt paydown until such time when commodity prices and development returns are supportive of resuming production growth," chief executive Stephen Loukas said in the release.

Obsidian now expects to spend $165 million to $170 million on capital projects in the first half of 2025, down from its initial guidance for spending of around $190 million. Average production in the half is now pegged at 33,600 barrels of oil equivalent per day, down from initial guidance of around 33,800 boepd.

Obsidian shares were last seen up US$0.01 to US$4.09 premarket. They closed up $0.14 to $5.58 Tuesday on the Toronto Stock Exchange.