# EDGAR Filing Document

**Accession Number:** 0001334388
**File Stem:** 0001193125-25-258317
**Filing Date:** 2025-10
**Character Count:** 193454
**Document Hash:** 77473c3cfaf8ec11b429bfe7da5a55e1
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-258317.hdr.sgml**: 20251030

**ACCESSION NUMBER**: 0001193125-25-258317

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 7

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251030

**DATE AS OF CHANGE**: 20251030

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** OBSIDIAN ENERGY LTD.
- **CENTRAL INDEX KEY:** 0001334388
- **STANDARD INDUSTRIAL CLASSIFICATION:** CRUDE PETROLEUM & NATURAL GAS [1311]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A0
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-32895
- **FILM NUMBER:** 251434626

**BUSINESS ADDRESS:**
- **STREET 1:** 207 - 9TH AVENUE S.W.
- **STREET 2:** SUITE 200
- **CITY:** CALGARY
- **STATE:** A0
- **ZIP:** T2P 1K3
- **BUSINESS PHONE:** (403) 777-2500

**MAIL ADDRESS:**
- **STREET 1:** 207 - 9TH AVENUE S.W.
- **STREET 2:** SUITE 200
- **CITY:** CALGARY
- **STATE:** A0
- **ZIP:** T2P 1K3

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PENN WEST PETROLEUM LTD.
- **DATE OF NAME CHANGE:** 20110125

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PENN WEST ENERGY TRUST
- **DATE OF NAME CHANGE:** 20050727

**UNITED STATES**<br>**SECURITIES AND EXCHANGE COMMISSION**<br>**Washington, D.C. 20549**<br>**___________________**<br>**Form 6-K**<br>**REPORT OF FOREIGN PRIVATE ISSUER** <br>**PURSUANT TO RULE 13a-16 OR 15d-16** <br>**OF THE SECURITIES EXCHANGE ACT OF 1934**<br>**For the month of October 2025**<br>**Commission File Number 1-32895**<br>**___________________**<br>**Obsidian Energy Ltd.**<br>*(Translation of registrant's name into English)* <br>Suite 200, 207 – 9<sup>th</sup> Avenue SW<br>Calgary, Alberta T2P 1K3<br>Canada<br>(*Address of principal executive offices*)<br>**___________________**<br>Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.<br>Form 20-F  Form 40-F ☑<br>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) <br>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) <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .<br>

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**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 October 30, 2025.

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY LTD.** | **OBSIDIAN ENERGY LTD.** |
| By: | /s/ Stephen Loukas<br>|
| Name: | Stephen Loukas |
| Title: | President and Chief Executive Officer |

---

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**EXHIBIT INDEX**

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| | |
|:---|:---|
| &nbsp;&nbsp;**<u>Exhibit</u>** | &nbsp;&nbsp;**<u>Description</u>** |
| &nbsp;&nbsp;99.1 | &nbsp;&nbsp;News Release, dated October 30, 2025 |
| &nbsp;&nbsp;99.2 | &nbsp;&nbsp;Management's Discussion and Analysis for the three and nine months ended September 30, 2025 |
| &nbsp;&nbsp;99.3<br>99.4<br>99.5 | &nbsp;&nbsp;Financial Statements for the three and nine months ended September 30, 2025<br>Quarterly Certification of the Chief Executive Officer under Canadian law<br>Quarterly Certification of the Chief Financial Officer under Canadian law<br>|

---

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## Exhibit 99.1

**Exhibit 99.1**

![img16108851_0.jpg](img16108851_0.jpg)

**Obsidian Energy Announces Third Quarter 2025 Results** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Active H2 2025 capital program in Peace River and successful drilling of the first Belly River well in Crimson*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Average production of 27,316 boe per day resulting in funds flow from operations of $49.7 million ($0.74 per share basic) including a $5.5 million mark-to-market impact on share-based compensation* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Increased H2 2025 production guidance to 27,800 - 28,300 boe/d on strong results from our development program*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Commencement of a pre-paid equity forward program to hedge our outstanding share-based incentive plan awards*

CALGARY, October 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 third quarter of 2025.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three months ended<br>September 30** | **Three months ended<br>September 30** | **Three months ended<br>September 30** | **Nine months ended<br>September 30** | **Nine months ended<br>September 30** |
|  | **2025** | **2025** | 2024 | **2025** | 2024 |
| **FINANCIAL** | **FINANCIAL** |  |  |  |  |
| *(millions, except per share amounts)* | *(millions, except per share amounts)* |  |  |  |  |
| Cash flow from operating activities |  | $**45.4** | $110.3 | $**197.3** | $246.9 |
| &nbsp;&nbsp;Basic per share ($/share)<sup>1</sup> |  | **0.68** | 1.45 | **2.81** | 3.23 |
| &nbsp;&nbsp;Diluted per share ($/share)<sup>1</sup> |  | **0.66** | 1.40 | **2.74** | 3.10 |
| Funds flow from operations<sup>2</sup> |  | **49.7** | 124.7 | **215.6** | 324.3 |
| &nbsp;&nbsp;Basic per share ($/share)<sup>3</sup> |  | **0.74** | 1.64 | **3.07** | 4.24 |
| &nbsp;&nbsp;Diluted per share ($/share)<sup>3</sup> |  | **0.72** | 1.58 | **2.99** | 4.07 |
| Net income |  | **16.8** | 33.2 | **47.5** | 82.2 |
| &nbsp;&nbsp;Basic per share ($/share) |  | **0.25** | 0.44 | **0.68** | 1.07 |
| &nbsp;&nbsp;Diluted per share ($/share) |  | **0.24** | 0.42 | **0.66** | 1.03 |
| Capital expenditures |  | **65.3** | 85.5 | **233.9** | 259.0 |
| Property acquisitions (dispositions), net |  | **0.3** | - | **(210.6)** | 84.9 |
| Decommissioning expenditures |  | **7.9** | 6.3 | **18.5** | 20.4 |
| Long-term debt |  | **145.4** | 342.1 | **145.4** | 342.1 |
| Net debt<sup>2</sup> |  | $**219.3** | $413.6 | $**219.3** | $413.6 |
| **OPERATIONS** |  |  |  |  |  |
| Daily Production |  |  |  |  |  |
| &nbsp;&nbsp;Light oil (bbl/d) |  | **4979** | 13722 | **7978** | 13528 |
| &nbsp;&nbsp;Heavy oil (bbl/d) |  | **12586** | 10624 | **11844** | 8142 |
| &nbsp;&nbsp;NGL (bbl/d) |  | **1955** | 3148 | **2401** | 3043 |
| &nbsp;&nbsp;Natural gas (mmcf/d) |  | **47** | 73 | **56** | 71 |
| Total production<sup>4</sup> (boe/d) |  | **27316** | 39714 | **31518** | 36587 |
| Average sales price (before hedging)<sup>1</sup> |  |  |  |  |  |
| &nbsp;&nbsp;Light oil ($/bbl) |  | $**86.67** | $100.09 | $**94.56** | $100.94 |
| &nbsp;&nbsp;Heavy oil ($/bbl) |  | **67.93** | 73.73 | **66.35** | 71.78 |
| &nbsp;&nbsp;NGL ($/bbl) |  | **36.44** | 48.92 | **44.53** | 49.38 |
| &nbsp;&nbsp;Natural gas ($/mcf) |  | $**0.91** | $0.86 | $**1.77** | $1.51 |

---

------

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| | | | | |
|:---|:---|:---|:---|:---|
| Netback ($/boe) |  |  |  |  |
| &nbsp;&nbsp;Sales price | $**51.26** | $59.77 | $**55.39** | $60.34 |
| &nbsp;&nbsp;Risk management gain (loss) | **(0.33)** | 2.16 | **0.02** | 1.56 |
| &nbsp;&nbsp;Net sales price | **50.93** | 61.93 | **55.41** | 61.90 |
| &nbsp;&nbsp;Royalties | **(6.56)** | (7.77) | **(7.06)** | (7.73) |
| &nbsp;&nbsp;Transportation | **(4.46)** | (4.19) | **(4.63)** | (4.10) |
| &nbsp;&nbsp;Net operating costs<sup>3</sup> | **(15.01)** | (13.74) | **(14.84)** | (13.82) |
| &nbsp;&nbsp;Netback<sup>3</sup> ($/boe) | $**24.90** | $36.23 | $**28.88** | $36.25 |

---

(1)Supplementary financial measure. See '*Non-GAAP and Other Financial Measures'*.

(2)Non-GAAP financial measure. See '*Non-GAAP and Other Financial Measures*'.

(3)Non-GAAP ratio. See '*Non-GAAP and Other Financial Measures*'.

(4)Please refer to the '*Oil and Gas Information Advisory'* section below for information regarding the term "boe".

**PRESIDENTS MESSAGE**

"Coming out of spring break-up, we had an active third quarter focused on rebuilding our production profile post the closing of our Pembina disposition during the second quarter", commented Stephen Loukas, Obsidian Energy's President and CEO. "The execution of our second half development program is ahead of schedule, while our development volumes have exceeded our expectations. In Peace River we reached a record 7-day average of ~15,000 boe/d in September. At Willesden Green, we began our program in August drilling our first Belly River well at Crimson. The results from this initial well are very encouraging, with an IP25 of 538 boe/d (76% oil), validating an additional fairway in the emerging Belly River play. As a result of sustained success in our second half development program, we have narrowed our guidance range by increasing the lower end target. Our second half production range is now 27,800 to 28,300 boe/d and we anticipate being in the upper end of guidance. Additionally, water injection began at our Bluesky and Clearwater pilots and we intend to implement this recovery method on a broader scale in the area. We currently plan to accelerate the drilling of two new water injector wells in Dawson during the fourth quarter, which will result in a slight increase to our second half 2025 capital program."

Mr. Loukas continued, "During the third quarter we disposed of the InPlay Oil Corp. shares we received as partial consideration in our Pembina disposition for $91.4 million. These proceeds were applied against our credit facility, further strengthening our financial position and providing us with significant financial flexibility during this period of elevated volatility in commodity markets. The Board has opted to take advantage of our balance sheet strength by authorizing the execution of a pre-paid equity forward program to hedge the Company's outstanding share-based incentive plan exposure. Lastly, our concern about short-term oil prices was reflected in our already tempered second half capital program announced in July and we increased our hedged volumes through the balance of the year with approximately two-thirds of our fourth quarter WTI exposure hedged via swaps at ~C$90 per barrel. We will continue to monitor market conditions and consistent with our prior actions are prepared to make further adjustments to our capital program(s), including increasing it when appropriate to do so."

**THIRD Quarter 2025 Corporate Highlights**

• **Funds Flow from Operations** – The Company generated funds flow from operations ("**FFO**") of $49.7 million ($0.74 per share basic) compared to $124.7 million ($1.64 per share basic) in the third quarter of 2024. FFO declined in 2025 as a result of lower production volumes due to the disposition of our Pembina assets in April 2025, as well as a plant turnaround at the PCU#11 Pembina field during the quarter, lower oil prices and the mark-to-market impact of our previously issued share-based compensation awards. Our active share buyback program under our normal course issuer bid (**"NCIB"**) partially mitigated the lower FFO on a per share basis.

------

oShare-based compensation charges increased during the third quarter primarily due to the Company's share price increase and the resulting mark-to-market impact (September 30, 2025 - $9.07 per share vs. June 30, 2025 - $7.58 per share) which reduced FFO by $5.5 million. None of these awards settled during the third quarter and did not impact our available cash. In September, the Company began making purchases under a prepaid equity forward program, which will also be marked-to-market, to reduce the exposure of our share based compensation plans to future share price changes.

• **Capital Development** – Third quarter capital expenditures totaled $65.3 million (2024 – $85.5 million) while decommissioning expenditures were $7.9 million (2024 – $6.3 million). We progressed through our second half capital program with multiple rigs running in Peace River while commencing our development program within the Belly River formation in Willesden Green.

• **InPlay Share Disposition** – In August 2025, we disposed of the Company's common share position in InPlay Oil Corp. ("**InPlay**") that we received as part of the consideration on the disposition of our Pembina assets. The Company received proceeds of $91.4 million from the sale which resulted in a gain of $15.2 million that was recorded within net income. The proceeds from this sale were applied against debt and to accelerate share buybacks.

• **Net Debt** – Net debt levels were $219.3 million at September 30, 2025, compared to $411.7 million at December 31, 2024. The cash proceeds associated with the sale of our Pembina assets in April 2025 and the subsequent sale of our InPlay share position in August 2025 were applied against bank debt which led to significantly lower net debt.

oIn August 2025, the Company completed a partial redemption on $30.0 million of our senior unsecured notes, resulting in $80.8 million of senior notes currently outstanding. The pay down of these notes will result in future interest savings.

• **Share Buyback Program** – The Company had an active buyback program during the third quarter of 2025 and repurchased and cancelled approximately 1.1 million shares under the Company's NCIB for $8.7 million (at an average price of $7.99 per share). By the end of August 2025, the Company had repurchased and cancelled 7.1 million shares since the renewal of our NCIB in March 2025, which is the maximum number allowed under the plan. The Company expects to renew our NCIB in March 2026.

• **Net Operating Costs** – Net operating costs of $15.01 per boe in the third quarter of 2025 compared to $13.74 per boe in 2024. Net operating costs were impacted by increased trucking costs and higher processing fees due to expanded operations in our Peace River area compared to 2024. We anticipate operating costs per boe to decrease going forward as additional water disposal capabilities are expected to reduce trucking expenses in Peace River.

• **General and administrative ("G&A**") **Costs** – G&A costs were $1.95 per boe in the third quarter of 2025 compared to $1.37 per boe in 2024. G&A costs increased on a per boe basis given our lower production levels as a result of the Pembina asset disposition that closed in April 2025.

• **Net Income** – Net income for the third quarter of 2025 was $16.8 million ($0.25 per share basic) versus $33.2 million ($0.44 per share basic) in 2024. Net income was impacted by lower production from our Pembina asset disposition earlier in the year and lower commodity prices, which led to lower revenues.

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**third QUARTER 2025 CAPITAL program & HIGHLIGHTS**

During the third quarter, the Company advanced our second half capital program at both Peace River and Willesden Green. In Peace River, primary development was focused in the Clearwater at Dawson and Bluesky at Harmon Valley South **("HVS").** Enhanced oil recovery initiatives also progressed, as we commenced water injection at both Bluesky and Clearwater waterflood pilots. In Willesden Green, we drilled our first Belly River well in our Crimson field, which was brought on production in early October, and rig-released two additional Belly River wells in Open Creek also earlier in October. Key highlights are as follows:

***Peace River***

• **Active Development Program** - Rig-released 16 (16.0 net) wells in the area, including 14 (14.0 net) wells in the Dawson Clearwater field, and 2 (2.0 net) wells in the HVS Bluesky field. We experienced significant efficiencies from multi-well, pad drilling which resulted in advancing our execution timeline by one month allowing us to accelerate certain projects into the fourth quarter of 2025.

• **Strong Initial Rates** - Brought on production 14 (14.0 net) wells during the quarter, with initial production rates as follows:

o14-07 pad HVS (Bluesky) - 2 (2.0 net) wells with an average IP30 of 385 boe/d (100% oil) per well

o04-24 pad Dawson (Clearwater) - 2 (2.0 net) wells with an average IP30 of 316 boe/d (100% oil) per well

o13-23 pad Dawson (Clearwater) - 5 (5.0 net) wells with an average IP30 of 258 boe/d (100% oil) per well

o09-28 pad Dawson (Clearwater) - 5 (5.0 net) wells with an average IP30 of 214 boe/d (100% oil) per well.

• **Road Infrastructure Project** - During the third quarter we began construction on a major road infrastructure project in the Nampa field. Upon completion, which is expected in the fourth quarter, this infrastructure will provide year-round access to the field supporting future development drilling and the re-activation of approximately 200 bbl/d of previously shut-in Clearwater production.

• **Waterflood Injection** - Two waterflood projects were completed and injection commenced during the third quarter.

oTwo Bluesky wells (2.0 net) were converted to injection at the HVS 09-25 pad Waterflood project.

oTwo single leg injectors (2.0 net) were converted to injection at the 04-24 pad at our Dawson Waterflood pilot. We are planning to expand the Dawson Waterflood project and will drill an additional two (2.0 net) injection wells from the 04-24 pad in the fourth quarter of 2025.

***Willesden Green***

• **Belly River Focus** - In September, we rig released our first Belly River horizontal well at our 12-21 pad in Crimson which was subsequently brought on production in early October. This well is in the heart of our existing Crimson field and is the first appraisal well in a new Belly River development fairway.

o12-21 pad (Belly River) - 1 (1.0 net) well with strong initial rates with an IP25 of 538 boe/d (76% oil).

Additionally, in October we rig-released two Belly River wells in Open Creek which follow up on our successful 2024 Belly River drill. We anticipate these wells to be on production during the fourth quarter.

• **Mannville Development -** We drilled 1 (1.0 net) well in the Manville formation in September. We experienced positive flow results through the test phase, prior to the well being shut-in for equip and

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tie-in work. The well will be placed back on production in the fourth quarter timed to optimize for seasonal gas prices.

• **Open Creek Infrastructure Project** - During the third quarter, we made significant progress on our Open Creek infrastructure project which will connect this under-exploited field into our regional infrastructure system. We anticipate completing this project by the end 2025 allowing further development of our Belly River and Cardium plays at Open Creek.

**WELLS RIG RELEASED AND ON PRODUCTION 2025**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Q1-Q3** <br>**Gross (Net) Wells** | &nbsp;&nbsp;**Q1-Q3** <br>**Gross (Net) Wells** | &nbsp;&nbsp;**Rig Released** <br>**Gross (Net) Wells** | &nbsp;&nbsp;**Rig Released** <br>**Gross (Net) Wells** |
|  | &nbsp;&nbsp;**Rig Released** | &nbsp;&nbsp;**On Production** | &nbsp;&nbsp;**Q4E** | &nbsp;&nbsp;**2025E** |
| &nbsp;&nbsp;**DEVELOPMENT WELLS** |  |  |  |  |
| &nbsp;&nbsp;***Heavy Oil Assets*** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Peace River (Bluesky) | &nbsp;&nbsp;14 (12.4) | &nbsp;&nbsp; 16 (14.4) | &nbsp;&nbsp;- | &nbsp;&nbsp;14 (12.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Peace River (Clearwater) | &nbsp;&nbsp;21 (21.0) | &nbsp;&nbsp;19 (19.0) | &nbsp;&nbsp;4 (4.0) | &nbsp;&nbsp;25 (25.0) |
| &nbsp;&nbsp;***Light Oil Assets*** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Willesden Green (Cardium) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;4 (4.0) | &nbsp;&nbsp;4 (4.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Willesden Green (Belly River) | &nbsp;&nbsp;1 (1.0) | &nbsp;&nbsp;- | &nbsp;&nbsp;2 (2.0) | &nbsp;&nbsp;3 (3.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Willesden Green (Mannville) | &nbsp;&nbsp;1 (1.0) | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;1 (1.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pembina (Cardium)<sup>1</sup> | &nbsp;&nbsp;4 (4.0) | &nbsp;&nbsp;4 (4.0) | &nbsp;&nbsp;- | &nbsp;&nbsp;4 (4.0) |
|  | &nbsp;&nbsp;41 (39.4) | &nbsp;&nbsp;39 (37.4) | &nbsp;&nbsp;10 (10.0) | &nbsp;&nbsp;51 (49.4) |
| &nbsp;&nbsp;**EXPLORATION/APPRAISAL WELLS** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Peace River (Bluesky) | &nbsp;&nbsp;3 (3.0) | &nbsp;&nbsp;3 (3.0) | &nbsp;&nbsp;- | &nbsp;&nbsp;3 (4.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Peace River (Clearwater) | &nbsp;&nbsp;4 (4.0) | &nbsp;&nbsp;4 (4.0) | &nbsp;&nbsp;- | &nbsp;&nbsp;4 (4.0) |
|  | &nbsp;&nbsp;7 (7.0) | &nbsp;&nbsp;7 (7.0) | &nbsp;&nbsp;- | &nbsp;&nbsp;7 (7.0) |
| &nbsp;&nbsp;**TOTAL OPERATED WELLS**<sup>2</sup>  | &nbsp;&nbsp;**48 (46.4)**<sup>3</sup> | &nbsp;&nbsp;**46 (44.4**)<sup>4</sup> | &nbsp;&nbsp;**10 (10.0)**<sup>5</sup> | &nbsp;&nbsp;**58 (56.4)** |

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(1)Capital expenditures for the Pembina wells were paid for by InPlay as they were included in the interim closing adjustments of the Pembina disposition.

(2)In addition, Obsidian Energy participated in the rig release of six non-operated (2.7 net) wells in the first nine months of 2025 and anticipates participating in six (2.7) non-operated wells in the fourth quarter of 2025.

(3)The number of wells also excludes the two (2.0 net) Peace River single leg injector wells.

(4)Three (3.0 net) wells rig released in 2024 were placed on production in the first quarter of 2025; they are included in the total.

(5)We anticipate drilling an additional two (2.0) injectors in Q4 which are not included in the total.

**UPDATED 2025 guidance** 

Supported by recent success in our development program we are increasing the lower end of our second half 2025 production guidance to 27,800 - 28,300 boe/d. With continued operational momentum, we anticipate being in the upper-end of this range.

In addition to strong production rates, better than expected program efficiencies have allowed us to accelerate certain projects into late 2025, which includes drilling two (2.0 net) incremental injector wells at our Dawson waterflood project. Combining this with a larger capital program at our non-operated PCU#11 asset we are updating our capital expenditure guidance range to $120 to $125 million.

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Driven by the previously mentioned increased trucking costs and higher processing fees in Peace River, third quarter operating costs were higher than expected. With higher costs incurred to date we are increasing our second half 2025 operating cost guidance to $14.35 to $14.60 per boe. Improved water handling costs over the remainder of the year are expected to result in lower costs moving forward.

Our updated second half 2025 guidance assumes commodity prices of US$60.00/bbl WTI, US$4.00/bbl MSW differential, US$11.50/bbl WCS differential, and $2.75/GJ AECO natural gas for the remainder of the year. Based on these assumptions and our hedges in place, we anticipate FFO of approximately $114 million for the second half of 2025 with a net debt to annualized FFO ratio of approximately 1.0 times.

Updated second half guidance is presented below:

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| | | | |
|:---|:---|:---|:---|
|  |  | **Previous H2 2025E**<br>**Guidance** | **Updated H2 2025E**<br>**Guidance** |
| &nbsp;&nbsp;Production<sup>1</sup> | &nbsp;&nbsp;boe/d | 27100 – 28300 | 27800 – 28300 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% Oil and NGLs | &nbsp;&nbsp;% | 72 | 72 |
| &nbsp;&nbsp;Capital expenditures<sup>2</sup> | &nbsp;&nbsp;$ millions | 110 – 120 | 120 – 125 |
| &nbsp;&nbsp;Decommissioning expenditures | &nbsp;&nbsp;$ millions | 13 – 15 | 14 – 15 |
| &nbsp;&nbsp;Net operating costs<sup>3</sup> | &nbsp;&nbsp;$/boe | 13.45 – 14.35 | 14.35 – 14.60 |
| &nbsp;&nbsp;General & administrative | &nbsp;&nbsp;$/boe | 2.00 – 2.10 | 1.95 – 2.05 |
| &nbsp;&nbsp;***Based on midpoint of above guidance*** | &nbsp;&nbsp;***Based on midpoint of above guidance*** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;FFO<sup>3</sup> | &nbsp;&nbsp;$ millions | 113 | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp;FFO/share<sup>2,3</sup> | &nbsp;&nbsp;$/share | 1.67 | 1.70 |
| &nbsp;&nbsp;&nbsp;&nbsp;FCF<sup>3</sup> | &nbsp;&nbsp;$ millions | (16) | (23) |
| &nbsp;&nbsp;&nbsp;&nbsp;FCF/share<sup>2,3</sup> | &nbsp;&nbsp;$/share | (0.24) | (0.34) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net debt<sup>3</sup> | &nbsp;&nbsp;$ millions | 213 | 235 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net debt to annualized FFO<sup>3</sup> | &nbsp;&nbsp;times | 0.9 | 1.0 |
| &nbsp;&nbsp;***Pricing assumptions***<sup>2</sup> |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;WTI | &nbsp;&nbsp;US$/bbl | 65.00 | 60.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign Exchange Rate | &nbsp;&nbsp;CAD/USD | 1.36 | 1.40 |
| &nbsp;&nbsp;&nbsp;&nbsp;MSW Differential | &nbsp;&nbsp;US$/bbl | 3.50 | 4.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;WCS Differential | &nbsp;&nbsp;US$/bbl | 11.50 | 11.50 |
| &nbsp;&nbsp;&nbsp;&nbsp;AECO | &nbsp;&nbsp;$/GJ | 2.50 | 2.75 |

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;***Asset level information,*** <br>***based on midpoint of above guidance*** | &nbsp;&nbsp;***Asset level information,*** <br>***based on midpoint of above guidance*** | **Previous H2 2025E** <br>**Guidance** | **Updated H2 2025E**<br>**Guidance** |
| &nbsp;&nbsp;***Heavy Oil*** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Average production | &nbsp;&nbsp;boe/d | 13500 | 13900 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures<sup>2</sup> | &nbsp;&nbsp;$ millions | 62 | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net operating costs<sup>3</sup> | &nbsp;&nbsp;$/boe | 17.40 | 18.10 |
| &nbsp;&nbsp;&nbsp;&nbsp;Netback<sup>3</sup> | &nbsp;&nbsp;$/boe | 26.92 | 27.80 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net operating income<sup>3</sup> | &nbsp;&nbsp;$ millions | 67 | 70 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset level FCF | &nbsp;&nbsp;$ millions | 5 | 6 |
| &nbsp;&nbsp;***Light Oil*** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Average production | &nbsp;&nbsp;boe/d | 14200 | 14150 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures<sup>2</sup> | &nbsp;&nbsp;$ millions | 52 | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net operating costs<sup>3</sup> | &nbsp;&nbsp;$/boe | 10.60 | 10.35 |
| &nbsp;&nbsp;&nbsp;&nbsp;Netback<sup>3</sup> | &nbsp;&nbsp;$/boe | 26.90 | 23.65 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net operating income<sup>3</sup> | &nbsp;&nbsp;$ millions | 70 | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset level FCF | &nbsp;&nbsp;$ millions | 18 | 2 |

---

(1)Refer to 'Supplemental Production Disclosure' below for details of production by product types.

(2)Refer to "Budget Assumptions Information" below for further details.

(3)See "Non-GAAP and Other Financial Measures" section below for further details.

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Estimated sensitivities to selected key assumptions on FFO for the second half of 2025 are as follows:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Guidance Sensitivity Table**  | &nbsp;&nbsp;**Guidance Sensitivity Table**  | &nbsp;&nbsp;**Guidance Sensitivity Table**  |
| &nbsp;&nbsp;**<br>Variable** | **<br>Range** | **Change in H2 2025E FFO** <br>**($ millions)** |
| &nbsp;&nbsp;WTI (US$/bbl)  | +/- $1.00/bbl | 0.7 |
| &nbsp;&nbsp;Foreign Exchange Rate (CAD/USD) | +/- $0.01 | 0.2 |
| &nbsp;&nbsp;MSW light oil differential (US$/bbl) | +/- $1.00/bbl | 0.2 |
| &nbsp;&nbsp;WCS heavy oil differential (US$/bbl) | +/- $1.00/bbl | 0.3 |
| &nbsp;&nbsp;AECO ($/GJ) | +/- $0.25/GJ | 0.3 |

---

**HEDGING UPDATE**

The Company has been actively hedging in response to the volatile commodity markets to preserve cash flow.

Additionally, in September 2025, the Company began entering into prepaid equity forward contracts on our shares to help mitigate the equity price risk associated with our share-based compensation plans. During the third quarter of 2025, the Company purchased prepaid equity forward contracts on 820,000 shares at an average price of $8.92 per share and subsequently increased our position in October.

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

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| | | | | |
|:---|:---|:---|:---|:---|
| **Type** | **Volume <br>(bbls/d)** | **Remaining Term** | **Price ($/bbl)** | **Price ($/bbl)** |
| **Oil** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;WTI Swap | 12000 | October 2025 | $— | 90.11 |
| &nbsp;&nbsp;&nbsp;&nbsp;WTI Swap | 11250 | November 2025 |  | 89.99 |
| &nbsp;&nbsp;&nbsp;&nbsp;WTI Swap | 9250 | December 2025 |  | 89.61 |
| &nbsp;&nbsp;&nbsp;&nbsp;WCS Differential Swap | 6000 | October 2025 - December 2025 | $— | (19.30) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Type** | **Volume <br>(mcf/d)** | **Remaining Term** | **Price ($/mcf)** | **Price ($/mcf)** |
| **Natural Gas** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;AECO Swap | 25118 | October 2025 | $— | 2.24 |
| &nbsp;&nbsp;&nbsp;&nbsp;AECO Swap | 24171 | November 2025 - March 2026 |  | 3.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;AECO Swap | 27488 | April 2026 - October 2026 |  | 2.80 |
| &nbsp;&nbsp;&nbsp;&nbsp;AECO Collar | 1896 | October 2025 | $2.11 - 2.64 | 2.11 - 2.64 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Type** | **Share<br>Volume** | **Remaining Term** | **Price (C$)** | **Price (C$)** |
| **Equity** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity Forward Contract | 720000 | September 2028 | $— | 8.89 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity Forward Contract | 1200000 | October 2028 | $— | 8.78 |

---

**UPDATED CORPORATE PRESENTATION** 

For further information on these and other matters, Obsidian Energy will post an updated corporate presentation on our website, <u>www.obsidianenergy.com</u>, in due course.

------

**ADDITIONAL READER ADVISORIES** 

**SUPPLEMENTAL PRODUCTION DISCOSURE**

Outlined below is expected average production by product based on the midpoint of our second half 2025 guidance estimates.

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; <br>***Based on midpoint of guidance***  | &nbsp;&nbsp; <br>***Based on midpoint of guidance***  | **Previous H2 2025E**<br>**Guidance** | **Updated H2 2025E**<br>**Guidance** |
| &nbsp;&nbsp;Heavy Oil | &nbsp;&nbsp;bbl/d | 12700 | 13000 |
| &nbsp;&nbsp;Light Oil | &nbsp;&nbsp;bbl/d | 5400 | 5300 |
| &nbsp;&nbsp;NGLs | &nbsp;&nbsp;bbl/d | 1960 | 1950 |
| &nbsp;&nbsp;Natural gas | &nbsp;&nbsp;mmcf/d | 45.8 | 46.8 |
| &nbsp;&nbsp;Total Production | &nbsp;&nbsp;boe/d | 27700 | 28050 |

---

**BUDGET ASSUMPTIONS INFORMATION**

*<u>Capital Expenditures</u>*

• Asset level capital does not include $1 million in corporate capital.

*<u>Commodity Pricing</u>* 

• Updated second half capital guidance pricing assumptions include risk management (hedging) adjustments as of October 29, 2025. WTI, Foreign Exchange and AECO price assumptions for second half 2025 are forecasted for November to December 2025. MSW and WCS differential assumptions for the second half 2025 are forecasted for December 2025.

• Previous second half 2025 pricing assumptions include risk management (hedging) adjustments as of July 9, 2025. WTI, Foreign Exchange and AECO price assumptions for second half 2025 are forecasted for July to December 2025. MSW and WCS differential assumptions for the second half 2025 are forecasted for August to December 2025.

*<u>Per Share Calculations</u>*

• Updated second half 2025 guidance per share calculations are based on an estimated 67.1 million weighted average shares outstanding for the six months ended December 31, 2025.

• Previous second half 2025 guidance per share calculations are based on an estimated 67.7 million weighted average shares outstanding for the six months ended December 31, 2025.

**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.

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**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 nine months ended September 30, 2025, will be available in due course on the Company's website at <u>www.obsidianenergy.com</u> and under our SEDAR+ profile at <u>www.sedarplus.ca</u> and EDGAR profile at <u>www.sec.gov</u>. 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 nine months ended September 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.

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***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 nine months ended September 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 nine months ended September 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>September 30** | **Three months ended<br>September 30** | **Nine months ended<br>September 30** | **Nine months ended<br>September 30** |
| (millions, except per share amounts) | **2025** | 2024 | **2025** | 2024 |
| Cash flow from operating activities | $**45.4** | $110.3 | $**197.3** | $246.9 |
| Change in non-cash working capital | **(11.6)** | 6.1 | **(13.1)** | 49.2 |
| Decommissioning expenditures | **7.9** | 6.3 | **18.5** | 20.4 |
| Equity forward contracts | **7.4** | - | **7.4** | - |
| Onerous office lease settlements | **-** | 2.2 | **0.7** | 6.7 |
| Deferred financing costs | **(0.4)** | (0.6) | **(1.4)** | (1.8) |
| Restructuring charges | **0.1** | - | **0.9** | - |
| Transaction costs | **0.9** | - | **5.3** | 1.4 |
| Other expenses | **-** | 0.4 | - | 1.5 |
| FFO | **49.7** | 124.7 | **215.6** | 324.3 |
| Capital expenditures | **(65.3)** | (85.5) | **(233.9)** | (259.0) |
| Decommissioning expenditures | **(7.9)** | (6.3) | **(18.5)** | (20.4) |
| Free Cash Flow | $**(23.5)** | $32.9 | $**(36.8)** | $44.9 |

---

*Netback to Sales Price*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended<br>September 30** | **Three months ended<br>September 30** | **Nine months ended<br>September 30** | **Nine months ended<br>September 30** |
| (millions) | **2025** | 2024 | **2025** | 2024 |
| Sales price | $**128.8** | $218.5 | $**476.6** | $605.0 |
| Risk management gain (loss) | **(0.8)** | 7.8 | **0.2** | 15.6 |
| Net sales price | **128.0** | 226.3 | **476.8** | 620.6 |
| Royalties | **(16.5)** | (28.4) | **(60.8)** | (77.5) |
| Transportation | **(11.2)** | (15.3) | **(39.8)** | (41.1) |
| Net operating costs | **(37.7)** | (49.8) | **(127.7)** | (138.1) |
| Netback | $**62.6** | $132.8 | $**248.5** | $363.9 |

---

------

*Net Operating Costs to Operating Costs*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended<br>September 30** | **Three months ended<br>September 30** | **Nine months ended<br>September 30** | **Nine months ended<br>September 30** |
| (millions) | **2025** | 2024 | **2025** | 2024 |
| Operating costs | $**41.3** | $54.3 | $**140.0** | $152.7 |
| Less processing fees | **(1.7)** | (2.7) | **(7.1)** | (9.5) |
| Less road use recoveries | **(1.9)** | (2.3) | **(5.2)** | (6.1) |
| Add realized power risk management loss | **-** | 0.5 | **-** | 1.0 |
| Net operating costs | $**37.7** | $49.8 | $**127.7** | $138.1 |

---

*Net Debt to Long-Term Debt*

---

| | | |
|:---|:---|:---|
|  | **As at September 30** | **As at September 30** |
| (millions) | **2025** | 2024 |
| Long-term debt |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Syndicated credit facility | $**67.0** | $189.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Senior unsecured notes | **80.8** | 114.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Term loan | **-** | 42.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unamortized discount of senior unsecured notes | **(0.6)** | (1.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred financing costs | **(1.8)** | (2.9) |
| Total | **145.4** | 342.1 |
| Working capital deficiency |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash | **(1.0)** | (0.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | **(60.9)** | (87.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other | **(13.4)** | (17.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | **149.2** | 177.5 |
| Total | **73.9** | 71.5 |
| Net debt | $**219.3** | $413.6 |

---

**ABBREVIATIONS** 

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;<u>Oil</u>  |  | &nbsp;&nbsp;<u>Natural Gas</u> |  |
| &nbsp;&nbsp;bbl | &nbsp;&nbsp;barrel or barrels | &nbsp;&nbsp;AECO | &nbsp;&nbsp;Alberta benchmark price for natural gas |
| &nbsp;&nbsp;bbl/d | &nbsp;&nbsp;barrels per day | &nbsp;&nbsp;GJ | &nbsp;&nbsp;gigajoule |
| &nbsp;&nbsp;boe | &nbsp;&nbsp;barrel of oil equivalent | &nbsp;&nbsp;mcf  | &nbsp;&nbsp;thousand cubic feet |
| &nbsp;&nbsp;boe/d | &nbsp;&nbsp;barrels of oil equivalent per day | &nbsp;&nbsp;mcf/d | &nbsp;&nbsp;thousand cubic feet per day |
| &nbsp;&nbsp;MSW | &nbsp;&nbsp;Mixed Sweet Blend | &nbsp;&nbsp;mmcf/d | &nbsp;&nbsp;million cubic feet per day |
| &nbsp;&nbsp;WTI | &nbsp;&nbsp;West Texas Intermediate |  |  |
| &nbsp;&nbsp;WCS | &nbsp;&nbsp;Western Canadian Select |  |  |

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**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

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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 expectations for interest payments in the future; that we plan to renew the NCIB in 2026; our expectations for operating costs per boe and trucking requirements in the future; our expectations for well on-production and rig release dates and road completion; our expected timing for our Open Creek Infrastructure project; our updated corporate guidance for production, capital and decommissioning expenditures, net operating costs, G&A costs, FFO, FFO/share, FCF, FCF/share, net debt and net debt to annualized FFO; our updated asset level guidance for production, capital, net operating costs, netback, net operating income, and asset level FCF; our guidance sensitivities; our hedges; our update guidance by product; the timing of our updated corporate presentation; and that we will file our interim consolidated financial statements and MD&A on our website, SEDAR+ and EDGAR in due course.

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); 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 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. <br>

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 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

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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 (<u>www.sedarplus.ca</u>), EDGAR website (<u>www.sec.gov</u>) or Obsidian Energy's <u>website</u>. 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: <u>www.obsidianenergy.com</u>;

***Investor Relations:*** 

Toll Free: 1-888-770-2633

E-mail: <u>investor.relations@obsidianenergy.com</u> 

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## Exhibit 99.2

**Exhibit 99.2**

**MANAGEMENT'S DISCUSSION AND ANALYSIS**

For the three and nine months ended September 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 nine months ended September 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 October 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)

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Sep. 30** | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 |
| Three months ended | **2025** | 2025 | 2025 | 2024 | 2024 | 2024 | 2024 | 2023 |
| Production revenues | $**128.7** | $136.3 | $211.0 | $213.6 | $218.2 | $208.4 | $177.3 | $173.3 |
| Cash flow from operating activities | **45.4** | 55.2 | 96.7 | 115.0 | 110.3 | 77.9 | 58.7 | 117.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic per share <sup>(1)</sup> | **0.68** | 0.79 | 1.32 | 1.55 | 1.45 | 1.02 | 0.76 | 1.49 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted per share <sup>(1)</sup> | **0.66** | 0.75 | 1.27 | 1.49 | 1.40 | 0.98 | 0.73 | 1.44 |
| Funds flow from operations <sup>(2)</sup> | **49.7** | 65.8 | 100.1 | 107.7 | 124.7 | 115.2 | 84.4 | 97.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic per share <sup>(3)</sup> | **0.74** | 0.94 | 1.36 | 1.45 | 1.64 | 1.51 | 1.09 | 1.23 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted per share <sup>(3)</sup> | **0.72** | 0.90 | 1.31 | 1.39 | 1.58 | 1.44 | 1.05 | 1.18 |
| Net income (loss) | **16.8** | 15.3 | 15.4 | (284.8) | 33.2 | 37.1 | 11.9 | 34.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic per share | **0.25** | 0.22 | 0.21 | (3.83) | 0.44 | 0.48 | 0.15 | 0.44 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted per share | $**0.24** | $0.21 | $0.20 | $(3.83) | $0.42 | $0.46 | $0.15 | $0.42 |
| Production |  |  |  |  |  |  |  |  |
| Light oil (bbl/d) | **4979** | 6314 | 12727 | 13271 | 13722 | 13782 | 13079 | 12176 |
| Heavy oil (bbl/d) | **12586** | 12041 | 10887 | 11621 | 10624 | 7026 | 6748 | 5851 |
| NGLs (bbl/d) | **1955** | 2189 | 3072 | 3176 | 3148 | 3193 | 2783 | 2614 |
| Natural gas (mmcf/d) | **47** | 50 | 70 | 72 | 73 | 71 | 70 | 68 |
| Total (boe/d)<sup>(4)</sup> | **27316** | 28943 | 38416 | 40119 | 39714 | 35773 | 34238 | 31974 |

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(1)Supplementary financial measure. See "Non-GAAP and Other Financial Measures".

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

(3)Non-GAAP ratio. See "Non-GAAP and Other Financial Measures".

(4)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".

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|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | MANAGEMENT'S DISCUSSION AND ANALYSIS **1** |

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

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months ended<br>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
| (millions, except per share amounts) | **2025** | 2024 | **2025** | 2024 |
| Cash flow from operating activities | $**45.4** | $110.3 | $**197.3** | $246.9 |
| Change in non-cash working capital | **(11.6)** | 6.1 | **(13.1)** | 49.2 |
| Decommissioning expenditures | **7.9** | 6.3 | **18.5** | 20.4 |
| Equity forward contracts | **7.4** | - | **7.4** | - |
| Onerous office lease settlements | **-** | 2.2 | **0.7** | 6.7 |
| Deferred financing costs | **(0.4)** | (0.6) | **(1.4)** | (1.8) |
| Restructuring | **0.1** | - | **0.9** | - |
| Transaction costs | **0.9** | - | **5.3** | 1.4 |
| Other expenses | **-** | 0.4 | **-** | 1.5 |
| Funds flow from operations <sup>(1)</sup> | **49.7** | 124.7 | **215.6** | 324.3 |
| Capital expenditures | **(65.3)** | (85.5) | **(233.9)** | (259.0) |
| Decommissioning expenditures | **(7.9)** | (6.3) | **(18.5)** | (20.4) |
| Free Cash Flow <sup>(1)</sup> | $**(23.5)** | $32.9 | $**(36.8)** | $44.9 |
| Per share – funds flow from operations <sup>(2)</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic per share | $**0.74** | $1.64 | $**3.07** | $4.24 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted per share | $**0.72** | $1.58 | $**2.99** | $4.07 |

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

(2)Non-GAAP ratio. See "Non-GAAP and Other Financial Measures".

Cash flow from operating activities and funds flow from operations decreased in Q3 2025 compared to Q3 2024 primarily due to lower production revenues, as a result of lower production levels due to the disposition of our operated Pembina assets at the start of Q2 2025 and lower oil prices. Share-based compensation charges also impacted funds flow from operations in Q3 2025 with a $5.5 million charge, as a result of the Company's share price increase in the quarter (September 30, 2025 - $9.07 per share vs. June 30, 2025 - $7.58 per share) and the resulting mark-to-market impact. None of these awards were settled during the third quarter and did not impact our available cash. In September, the Company began entering into prepaid equity forward contracts, which will also be marked-to-market, to help mitigate our future exposure to share price changes in relation to our share-based compensation plans.

For the first nine months of 2025, the disposition of the operated Pembina assets and associated lower production and lower production revenues also reduced funds flow from operations and cash flow from operating activities 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 (after giving effect to InPlay's consolidation of its common shares on a one for six basis effective April 14, 2025) 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. 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 retained. 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.

In August 2025, the Company closed the sale of all of our InPlay Shares to a third party, for proceeds of $91.4 million, resulting in a $15.2 million gain.

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|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | MANAGEMENT'S DISCUSSION AND ANALYSIS **2** |

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This transaction further strengthened our balance sheet while significantly reducing our decommissioning liabilities, with the cash proceeds from the transaction used to initially pay down outstanding debt on our syndicated credit facility on closing and subsequently used to accelerate our share buyback program.

**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 new fields in the area. With a now more focused light oil asset base, we also expect to be able to grow our light oil 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. Purchases under the NCIB are subject to having $65 million of liquidity and otherwise complying with the terms of our current credit facilities. We have re-purchased and cancelled a total of approximately 17.2 million common shares (approximately 21 percent of our outstanding shares) for total consideration of $143.9 million since the inception of the NCIB in 2023. We renewed our NCIB program in March 2025 and by the end of August 2025, the Company had re-purchased and cancelled the maximum number of shares allowed under our current program of 7,144,408 shares. We expect to renew our NCIB in March 2026.

The Company continued with our environmental remediation efforts in the first nine months 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.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Q3 2025** | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 |
| Benchmark prices |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;WTI oil ($US/bbl) | $**64.93** | $63.74 | $71.42 | $70.27 | $75.09 | $80.57 | $76.96 | $78.32 |
| &nbsp;&nbsp;&nbsp;&nbsp;Edm mixed sweet par price (CAD$/bbl) | **86.57** | 84.04 | 95.00 | 94.39 | 97.60 | 105.41 | 92.21 | 99.46 |
| &nbsp;&nbsp;&nbsp;&nbsp;Western Canada Select (CAD$/bbl) | **75.28** | 73.89 | 84.04 | 80.67 | 83.80 | 91.82 | 77.80 | 76.76 |
| &nbsp;&nbsp;&nbsp;&nbsp;NYMEX Henry Hub ($US/mmbtu) | **3.07** | 3.44 | 3.65 | 2.79 | 2.16 | 1.89 | 2.24 | 2.88 |
| &nbsp;&nbsp;&nbsp;&nbsp;AECO 5A Index (CAD$/mcf) | **0.60** | 1.69 | 2.17 | 1.48 | 0.69 | 1.18 | 2.50 | 2.30 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange rate ($US/CAD$) | **1.38** | 1.38 | 1.43 | 1.40 | 1.37 | 1.37 | 1.35 | 1.36 |
| Benchmark differentials |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;WTI - Edm Light Sweet ($US/bbl) | **(2.20)** | (2.84) | (4.98) | (2.42) | (3.35) | (3.63) | (8.65) | (5.19) |
| &nbsp;&nbsp;&nbsp;&nbsp;WTI - Western Canadian Select Heavy ($US/bbl) | **(10.38)** | (10.20) | (12.65) | (12.54) | (13.51) | (13.55) | (19.33) | (21.88) |
| Average sales price <sup>(1)</sup> <sup>(2)</sup> |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Light oil (CAD$/bbl) | **86.67** | 91.09 | 99.46 | 96.95 | 100.09 | 107.61 | 94.82 | 100.38 |
| &nbsp;&nbsp;&nbsp;&nbsp;Heavy oil (CAD$/bbl) | **67.93** | 61.27 | 70.14 | 67.70 | 73.73 | 79.73 | 60.39 | 58.53 |
| &nbsp;&nbsp;&nbsp;&nbsp;NGLs (CAD$/bbl) | **36.44** | 39.42 | 53.49 | 44.27 | 48.92 | 48.92 | 50.43 | 55.65 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liquids (CAD$/bbl) | **69.56** | 68.11 | 82.21 | 78.88 | 84.04 | 91.64 | 79.08 | 82.85 |
| &nbsp;&nbsp;&nbsp;&nbsp;Natural gas (CAD$/mcf) | $**0.91** | $2.00 | $2.18 | $1.53 | $0.86 | $1.33 | $2.38 | $2.63 |

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(1)Excludes the impact of realized hedging gains or losses.

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

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|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | MANAGEMENT'S DISCUSSION AND ANALYSIS **3** |

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**Oil** 

WTI prices averaged US$64.93 per bbl during Q3 2025, with WTI prices starting the quarter at approximately US$67 per bbl in July before decreasing to US$63 per bbl in September. The decline in WTI was primarily driven by OPEC+ announcing that it will be increasing output thereby increasing supply in the market. Although prices decreased over the quarter, average WTI for Q3 2025 was slightly higher than US$63.74 per bbl in Q2 2025.

In Q3 2025, WCS differentials averaged US$10.38 per bbl which was relatively consistent to the average of US$10.20 per bbl in Q2 2025. MSW differentials averaged US$2.20 per bbl for Q3 2025 which was narrower than the US$2.84 per bbl in Q2 2025.

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

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| | | | | |
|:---|:---|:---|:---|:---|
| **Type** | **Volume <br>(bbls/d)** | **Remaining<br>Term** | **Price <br>($/bbl)** | **Price <br>($/bbl)** |
| WTI Swap | 12000 | October 2025 | $— | 90.11 |
| WTI Swap | 11250 | November 2025 |  | 89.99 |
| WTI Swap | 9250 | December 2025 |  | 89.61 |
| WCS Differential | 6000 | Q4 2025 | $— | (19.30) |

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**Natural Gas** 

The average NYMEX Futures price for the quarter settled at US$3.07 per mmbtu which was down from US$3.44 per mmbtu in the previous quarter.

In Alberta, gas prices decreased quarter-over-quarter due to a combination of increased supply and maintenance restrictions impacting exports. This led to AECO 5A prices averaging $0.60/mcf in Q3 2025 compared to $1.69/mcf in Q2 2025.

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

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| | | | | |
|:---|:---|:---|:---|:---|
| **Type** | **Volume <br>(mcf/d)** | **Remaining<br>Term** | **Price <br>($/mcf)** | **Price <br>($/mcf)** |
| AECO Swap | 25118 | October 2025 | $— | 2.24 |
| AECO Swap | 24171 | November 2025 - March 2026 |  | 3.31 |
| AECO Swap | 27488 | April 2026 - October 2026 |  | 2.80 |
| AECO Collar | 1896 | October 2025 | $2.11 - 2.64 | 2.11 - 2.64 |

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**Prepaid Equity Forward Contracts**

In Q3 2025, the Company began entering into prepaid equity forward contracts in respect of our common shares to help mitigate the equity price risk associated with our share-based compensation plans. Given the value of our share-based compensation plans fluctuates based on the Company's share price on the Toronto Stock Exchange (**"TSX"**) at each period end date, entering into equity forward contracts will help reduce the volatility in our funds flow from operations. The Company currently has the following contracts in place on a weighted average basis:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Share<br>Volume** | **Remaining Term** | **Price (C$)** | **Price (C$)** |
| **Type** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity Forward Contract | 720000 | September 2028 | $— | 8.89 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity Forward Contract | 1200000 | October 2028 | $— | 8.78 |

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| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | MANAGEMENT'S DISCUSSION AND ANALYSIS **4** |

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**RESULTS OF OPERATIONS**

**Average Sales Prices** <sup>(1)</sup>

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three months ended<br>September 30 | Three months ended<br>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
|  | **2025** | 2024 | % change | **2025** | 2024 | % change |
| Light oil (per bbl) | $**86.67** | $100.09 | (13) | $**94.56** | $100.94 | (6) |
| Heavy oil (per bbl) | **67.93** | 73.73 | (8) | **66.35** | 71.78 | (8) |
| NGL (per bbl) | **36.44** | 48.92 | (26) | **44.53** | 49.38 | (10) |
| Total liquids (per bbl) | **69.56** | 84.04 | (17) | **74.12** | 84.98 | (13) |
| Realized risk management gain (loss) (per bbl) | **(2.22)** | 0.42 | N/A | **(1.04)** | 0.09 | N/A |
| Total liquids, net (per bbl) | **67.34** | 84.46 | (20) | **73.08** | 85.07 | (14) |
| Natural gas (per mcf) | **0.91** | 0.86 | 6 | **1.77** | 1.51 | 17 |
| Realized risk management gain (per mcf) | **0.74** | 1.01 | (27) | **0.43** | 0.77 | (44) |
| Natural gas net (per mcf) | **1.65** | 1.87 | (12) | **2.20** | 2.28 | (4) |
| Weighted average (per boe) | **51.26** | 59.77 | (14) | **55.39** | 60.34 | (8) |
| Realized risk management gain (loss) <br>(per boe) | **(0.33)** | 2.16 | N/A | **0.02** | 1.56 | (99) |
| Weighted average net (per boe) | $**50.93** | $61.93 | (18) | $**55.41** | $61.90 | (10) |

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

**Production**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three months ended<br>September 30 | Three months ended<br>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
| Daily production | **2025** | 2024 | % <br>change | **2025** | 2024 | % change |
| Light oil (bbl/d) | **4979** | 13722 | (64) | **7978** | 13528 | (41) |
| Heavy oil (bbl/d) | **12586** | 10624 | 18 | **11844** | 8142 | 45 |
| NGL (bbl/d) | **1955** | 3148 | (38) | **2401** | 3043 | (21) |
| Natural gas (mmcf/d) | **47** | 73 | (36) | **56** | 71 | (21) |
| Total production (boe/d) | **27316** | 39714 | (31) | **31518** | 36587 | (14) |

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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.

In the first nine months of 2025, a total of 50 wells (48.4 net) were drilled and 53 wells (48.6 net) were brought on production. As a result of our emphasis on Peace River development, the Company has significantly increased production in the area over the past two years which has resulted in an increase in our heavy oil volumes year-over-year.

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|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | MANAGEMENT'S DISCUSSION AND ANALYSIS **5** |

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

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three months ended<br>September 30 | Three months ended<br>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
| Daily production (boe/d) <sup>(1)</sup> | **2025** | 2024 | %<br>change | **2025** | 2024 | % change |
| Cardium | **12401** | 25889 | (52) | **17232** | 25219 | (32) |
| Peace River | **13503** | 11175 | 21 | **12653** | 8571 | 48 |
| Viking | **1156** | 2345 | (51) | **1336** | 2462 | (46) |
| Legacy | **256** | 305 | (16) | **297** | 335 | (11) |
| Total | **27316** | 39714 | (31) | **31518** | 36587 | (14) |

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(1)Refer to "Supplemental Production Disclosure" for details by product type.

**Netbacks**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months ended<br>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
| (per boe) | **2025** | 2024 | **2025** | 2024 |
| Netback: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales price <sup>(1) (3)</sup> | $**51.26** | $59.77 | $**55.39** | $60.34 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk management gain (loss) <sup>(2)</sup> | **(0.33)** | 2.16 | **0.02** | 1.56 |
| &nbsp;&nbsp;&nbsp;&nbsp;Royalties | **(6.56)** | (7.77) | **(7.06)** | (7.73) |
| &nbsp;&nbsp;&nbsp;&nbsp;Transportation | **(4.46)** | (4.19) | **(4.63)** | (4.10) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net operating costs <sup>(3)</sup> | **(15.01)** | (13.74) | **(14.84)** | (13.82) |
| Netback <sup>(3)</sup> | $**24.90** | $36.23 | $**28.88** | $36.25 |
|  | **(boe/d)** | (boe/d) | **(boe/d)** | (boe/d) |
| Production | **27316** | 39714 | **31518** | 36587 |

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(1)Includes the impact of commodities purchased from and sold to third parties of $0.1 million (2024 – $0.3 million) for Q3 2025 and $0.6 million (2024 – $1.1 million) for the first nine months of 2025. See "Production Revenues" below for a reconciliation of "Sales" to "Production revenues".

(2)Realized risk management gains (losses) on commodity contracts.

(3)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 higher in the 2025 periods due to increased emulsion trucking costs and processing fees due to our expanded Peace River operations.

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| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | MANAGEMENT'S DISCUSSION AND ANALYSIS **6** |

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|:---|:---|:---|:---|:---|
|  | Three months ended<br>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
| (millions) | **2025** | 2024 | **2025** | 2024 |
| Netback: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales <sup>(1) (3)</sup> | $**128.8** | $218.5 | $**476.6** | $605.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk management gain (loss) <sup>(2)</sup> | **(0.8)** | 7.8 | **0.2** | 15.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Royalties | **(16.5)** | (28.4) | **(60.8)** | (77.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Transportation | **(11.2)** | (15.3) | **(39.8)** | (41.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net operating costs <sup>(3)</sup> | **(37.7)** | (49.8) | **(127.7)** | (138.1) |
| Netback <sup>(3)</sup> | $**62.6** | $132.8 | $**248.5** | $363.9 |

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(1)Includes the impact of commodities purchased from and sold to third parties of $0.1 million (2024 – $0.3 million) for Q3 2025 and $0.6 million (2024 – $1.1 million) for the first nine months of 2025. See "Production Revenues" below for a reconciliation of "Sales" to "Production revenues".

(2)Realized risk management gains (losses) on commodity contracts.

(3)Non-GAAP financial measures. See "Non-GAAP and Other Financial Measures".

**Production Revenues**

A reconciliation from production revenues to gross revenues is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months ended<br>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
| (millions) | **2025** | 2024 | **2025** | 2024 |
| Production revenues | $**128.7** | $218.2 | $**476.0** | $603.9 |
| Sales of commodities purchased from third parties | **0.4** | 1.1 | **3.7** | 6.6 |
| Less: Commodities purchased from third parties | **(0.3)** | (0.8) | **(3.1)** | (5.5) |
| Sales <sup>(1)</sup> | **128.8** | 218.5 | **476.6** | 605.0 |
| Realized risk management gain (loss) <sup>(2)</sup> | **(0.8)** | 7.8 | **0.2** | 15.6 |
| Gross revenues <sup>(1)</sup> | $**128.0** | $226.3 | $**476.8** | $620.6 |

---

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

(2)Relates to realized risk management gains (losses) 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 production volumes as a result of the Pembina Disposition early in Q2 2025 and lower realized prices.

**Change in Gross Revenues** <sup>(1)</sup>

---

| | |
|:---|:---|
| (millions) |  |
| Gross revenues – January 1 – September 30, 2024 | $620.6 |
| Decrease in liquids production | (84.2) |
| Decrease in liquids prices | (41.6) |
| Decrease in natural gas production | (6.5) |
| Increase in natural gas prices | 3.9 |
| Increase in realized oil risk management loss | (6.9) |
| Decrease in realized natural gas risk management gain | (8.5) |
| Gross revenues – January 1 – September 30, 2025 <sup>(2)</sup> | $476.8 |

---

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

(2)Excludes processing fees and other income.

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | MANAGEMENT'S DISCUSSION AND ANALYSIS **7** |

---

------

**Royalties**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months ended<br>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
|  | **2025** | 2024 | **2025** | 2024 |
| Royalties (millions) | $**16.5** | $28.4 | $**60.8** | $77.5 |
| Average royalty rate <sup>(1)</sup> | **13%** | 13% | **13%** | 13% |

---

(1)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 production due to the Pembina Disposition in Q2 2025 and lower oil prices. The average royalty rate remained flat for the 2025 periods compared to the 2024 periods.

**Expenses**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months ended<br>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
| (millions) | **2025** | 2024 | **2025** | 2024 |
| Net operating <sup>(1)</sup> | $**37.7** | $49.8 | $**127.7** | $138.1 |
| Transportation | **11.2** | 15.3 | **39.8** | 41.1 |
| Financing | **9.1** | 14.4 | **30.5** | 39.2 |
| Share-based compensation | $**7.2** | $(4.4) | $**9.9** | $5.5 |

---

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

*<u>Operating</u>* 

A reconciliation of operating costs to net operating costs is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months ended<br>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
| (millions) | **2025** | 2024 | **2025** | 2024 |
| Operating costs | $**41.3** | $54.3 | $**140.0** | $152.7 |
| Less processing fees | **(1.7)** | (2.7) | **(7.1)** | (9.5) |
| Less road use recoveries | **(1.9)** | (2.3) | **(5.2)** | (6.1) |
| Add realized power risk management loss | **-** | 0.5 | **-** | 1.0 |
| Net operating costs <sup>(1)</sup> | $**37.7** | $49.8 | $**127.7** | $138.1 |

---

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

On an absolute basis, for the 2025 periods, both operating and net operating costs were lower than the 2024 comparable periods, mainly due to our lower production base as a result of the Company closing the Pembina Disposition at the start of Q2 2025.

*<u>Transportation</u>*

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 on a per boe basis in 2025 periods compared to the 2024 periods. On an absolute basis transportation costs are lower in the 2025 periods than in the 2024 periods due to the Pembina Disposition in early Q2 2025.

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | MANAGEMENT'S DISCUSSION AND ANALYSIS **8** |

---

------

*<u>Financing</u>* 

Financing expense consists of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months ended<br>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
| (millions) | **2025** | 2024 | **2025** | 2024 |
| Interest | $**4.5** | $9.4 | $**17.1** | $23.8 |
| Accretion on decommissioning liability | **2.5** | 4.1 | **9.8** | 12.4 |
| Accretion on office lease provision | **-** | - | **-** | 0.3 |
| Accretion on discount of senior unsecured notes | **0.1** | 0.1 | **0.3** | 0.3 |
| Accretion on lease liabilities | **0.1** | 0.2 | **0.3** | 0.5 |
| Loss on repurchased/redeemed senior unsecured notes | **1.5** | - | **1.6** | 0.1 |
| Deferred financing costs | **0.4** | 0.6 | **1.4** | 1.8 |
| Financing | $**9.1** | $14.4 | $**30.5** | $39.2 |

---

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 September 30, 2025, the Company had senior unsecured notes outstanding totaling $80.8 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.

Additionally, in August 2025, the Company completed a partial redemption of $30.0 million of our senior unsecured notes at a price of $1,029.88 per $1,000 principal amount. The redemption also contributed to interest savings in Q3 2025 and in the future.

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 $17.0 million based on previous Repurchase Offers, open market purchases and redemptions. 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. The Company completed a Repurchase Offer for $1.4 million in August 2025.

At September 30, 2025, letters of credit totaling $4.2 million were outstanding (December 31, 2024 – $4.4 million) that reduce the amount otherwise available to be drawn on our syndicated credit facility.

*<u>Share-Based Compensation</u>*

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"), performance share units ("PSUs") granted under the RPSU plan and unrealized gains or losses under the equity forward contracts.

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | MANAGEMENT'S DISCUSSION AND ANALYSIS **9** |

---

------

Share-based compensation expense consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months ended<br>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
| (millions) | **2025** | 2024 | **2025** | 2024 |
| DSUs | $**3.3** | $(5.1) | $**2.1** | $(2.5) |
| PSUs | **2.3** | (1.8) | **1.7** | - |
| NTIP <sup>(1)</sup> | **-** | - | **-** | 1.1 |
| Equity forward contract gain <sup>(2)</sup> | **(0.1)** | - | **(0.1)** | - |
| Liability based incentive plans | $**5.5** | $(6.9) | $**3.7** | $(1.4) |
| RSUs | $**1.1** | $1.9 | $**4.7** | $5.3 |
| Options | **0.6** | 0.6 | **1.5** | 1.6 |
| Equity based incentive plans | **1.7** | 2.5 | **6.2** | 6.9 |
| Share-based compensation | $**7.2** | $(4.4) | $**9.9** | $5.5 |

---

(1)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 September 30, 2025.

(2)Relates to the equity forward contracts entered into to help manage the Company's exposure to our share-based compensation plans.

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 September 30, 2025, the Company's share price closed at $9.07 per share compared to $8.36 per share on December 31, 2024 and $7.51 per share on September 30, 2024 on the TSX. The share price used for the unrealized gain on the equity forward contract at September 30, 2025 was $9.07 per share compared to the initial average valuation of $8.92 per share.

**General and Administrative Expenses ("G&A")**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months ended<br>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
| (millions, except per boe amounts) | **2025** | 2024 | **2025** | 2024 |
| Gross | $**9.8** | $10.0 | $**30.6** | $30.6 |
| &nbsp;&nbsp;&nbsp;Per boe <sup>(1)</sup> | **3.89** | 2.75 | **3.56** | 3.06 |
| Net <sup>(2)</sup> | **4.9** | 5.0 | **15.5** | 15.4 |
| &nbsp;&nbsp;&nbsp;Per boe <sup>(1)</sup> | $**1.95** | $1.37 | $**1.80** | $1.53 |

---

(1)Supplementary financial measure. See "Non-GAAP and Other Financial Measures".

(2)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.

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | MANAGEMENT'S DISCUSSION AND ANALYSIS **10** |

---

------

**Depletion, Depreciation and Impairment**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months ended<br>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
| (millions) | **2025** | 2024 | **2025** | 2024 |
| Depletion and depreciation ("D&D") | $**45.6** | $67.4 | $**134.3** | $181.7 |
| PP&E Impairment (recovery) | $**(1.0)** | $1.7 | $**12.3** | $4.2 |

---

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 and no longer being depleted in 2025 and then the close of the Pembina Disposition early in Q2 2025, which reduced production levels.

The Company classified the Pembina Assets as held for sale prior to the close of the Pembina Disposition in April 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 $27.4 million, primarily due to the decrease in value of the InPlay Shares at closing. The impairment was recorded within depletion, depreciation and impairment on the Consolidated Statements of Income.

During the first nine months of 2025, we recorded a $15.1 million impairment reversal (2024 - $4.2 million impairment) 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>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
| (millions) | **2025** | 2024 | **2025** | 2024 |
| Deferred income tax expense | $**0.4** | $9.5 | $**9.7** | $25.5 |

---

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>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
| (millions, except per share amounts) | **2025** | 2024 | **2025** | 2024 |
| Net income | $**16.8** | $33.2 | $**47.5** | $82.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic per share | **0.25** | 0.44 | **0.68** | 1.07 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted per share | $**0.24** | $0.42 | $**0.66** | $1.03 |

---

Net income was lower in the 2025 periods as a result of the Company's lower production revenues due to lower production volumes related to the Pembina Disposition early in Q2 2025 and lower realized oil prices. This was partially offset by lower depletion and depreciation expense from the combination of the Pembina Assets being classified as assets held for sale and no longer being depleted in 2025 and the subsequent closing of the Pembina Disposition. Additionally, during Q3 2025, the Company recorded a $15.2 million gain in Other Income as a result of the Company selling all of our InPlay shares.

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | MANAGEMENT'S DISCUSSION AND ANALYSIS **11** |

---

------

**Capital Expenditures** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months ended<br>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
| (millions) | **2025** | 2024 | **2025** | 2024 |
| Drilling and completions | $**42.6** | $62.8 | $**145.0** | $191.8 |
| Well equipping and facilities | **20.7** | 22.6 | **79.5** | 66.5 |
| Land and geological/geophysical | **1.4** | - | **8.3** | - |
| Corporate | **0.6** | 0.1 | **1.1** | 0.7 |
| Capital expenditures | $**65.3** | $85.5 | $**233.9** | $259.0 |
| Property acquisitions, net | **0.3** | - | **(210.6)** | 84.9 |
| Total | $**65.6** | $85.5 | $**23.3** | $343.9 |

---

In Q3 2025, capital expenditures were focused on development activities in Peace River, where we had multiple rigs running, in addition to drilling in the Belly River formation in Willesden Green. Overall, capital expenditures were lower in Q3 2025 than Q3 2024 as we moderated capital spending in the period in response to lower commodity prices and volatility in commodity markets.

For the first nine months of 2025, 53 (48.6 net) wells were brought on production, including operated and non-operated activities, which included 44 (42.4 net) wells in Peace River and 9 (6.2 net) wells in the Cardium.

**Drilling** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Nine months ended September 30 | Nine months ended September 30 | Nine months ended September 30 | Nine months ended September 30 |
|  | **2025** | **2025** | 2024 | 2024 |
| (number of wells) | **Gross** | **Net** | Gross | Net |
| Oil | **53** | **48** | 59 | 51 |
| Gas | **1** | **1** | 4 | 1 |
| Injectors, stratigraphic and service | **2** | **2** | 7 | 6 |
| Total | **56** | **51** | 70 | 58 |

---

The Company drilled 50 (48.4 net) operated wells, including injectors, during the first nine months of 2025. In addition, the Company had non-operated working interests in 6 (2.7 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.

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | MANAGEMENT'S DISCUSSION AND ANALYSIS **12** |

---

------

**Liquidity and Capital Resources**

*<u>Net Debt</u>*

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

---

| | | |
|:---|:---|:---|
|  | As at | As at |
| (millions) | **September 30, 2025** | December 31, 2024 |
| Long-term debt |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Syndicated credit facility | $**67.0** | $225.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Senior unsecured notes | **80.8** | 114.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unamortized discount of senior unsecured notes | **(0.6)** | (1.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred financing costs | **(1.8)** | (2.7) |
| Total | **145.4** | 335.4 |
| Working capital deficiency |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash | **(1.0)** | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | **(60.9)** | (88.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other | **(13.4)** | (12.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank overdraft | **-** | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | **149.2** | 175.8 |
| Total | **73.9** | 76.3 |
| Net debt <sup>(1)</sup> | $**219.3** | $411.7 |

---

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

Net debt decreased compared to December 31, 2024, primarily as a result of lower drawings under our syndicated credit facility. The Company applied the cash proceeds received as part of the Pembina Disposition in April 2025 as well as the proceeds received upon the sale of all of our InPlay Shares in August 2025 to our syndicated credit facility which led to the reduction.

*<u>Liquidity</u>*

The Company currently has a reserve-based syndicated credit facility with a borrowing limit of $235.0 million and senior unsecured notes totaling $80.8 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**

In April 2025, the Company closed the Pembina Disposition. As part of the consideration, the Company received 9,139,784 InPlay Shares. InPlay paid a cash dividend of $0.09 per common share per month, resulting in the Company receiving $0.8 million in Q3 2025 and $3.3 million for the first nine months of 2025. The dividend income received from InPlay was recorded within Other Income.

Subsequently in August 2025, the Company sold all of our InPlay Shares for total proceeds of $91.4 million and recorded a $15.2 million gain on the sale within Other Income.

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | MANAGEMENT'S DISCUSSION AND ANALYSIS **13** |

---

------

**Financial Instruments** 

Obsidian Energy had the following financial instruments outstanding as at September 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.

*Commodity contracts*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Notional<br>Volume (bbl/d)** | **Remaining Term** | **Price (C$/bbl)** | **Price (C$/bbl)** | **Fair value <br>(millions)** |
| **Oil** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;WTI Swap | 12000 | October 2025 | $— | 90.11 | $1.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;WTI Swap | 11250 | November 2025 |  | 89.99 | 1.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;WTI Swap | 9250 | December 2025 |  | 89.61 | 1.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;WCS Differential | 6000 | Q4 2025 | $— | (19.30) | $(1.7) |
| **Total oil** |  |  |  |  | $**2.1** |
|  | **Notional<br>Volume (mcf/d)** | **Remaining Term** | **Price (C$/mcf)** | **Price (C$/mcf)** | **Fair value (millions)** |
| **Natural Gas** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;AECO Swap | 25118 | October 2025 | $— | 2.24 | $0.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;AECO Swap | 24171 | November 2025 - March 2026 |  | 3.31 | 1.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;AECO Swap | 20379 | April 2026 - October 2026 |  | 2.23 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;AECO Collar | 1896 | October 2025 | $2.11 - 2.64 | 2.11 - 2.64 | $0.1 |
| **Total natural gas** |  |  |  |  | $**2.4** |
| **Total** |  |  |  |  | $**4.5** |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months ended<br>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
| (millions) | **2025** | 2024 | **2025** | 2024 |
| Realized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Settlement of oil contracts gain (loss) | $**(4.0)** | $1.0 | $**(6.3)** | $0.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Settlement of natural gas contracts gain | **3.2** | 6.8 | **6.5** | 15.0 |
| Total realized risk management gain (loss) | $**(0.8)** | $7.8 | $**0.2** | $15.6 |
| Unrealized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Oil contracts gain (loss) | $**4.6** | $(1.4) | $**(1.2)** | $(1.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Natural gas contracts loss | **(0.8)** | (4.5) | **(1.4)** | (5.7) |
| Total unrealized risk management gain (loss) | **3.8** | (5.9) | **(2.6)** | (7.2) |
| Risk management gain (loss) | $**3.0** | $1.9 | $**(2.4)** | $8.4 |

---

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| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | MANAGEMENT'S DISCUSSION AND ANALYSIS **14** |

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*Prepaid Equity Forward Contracts*

Obsidian Energy is exposed to equity price risk on our common share price in relation to our share-based compensation plans. Given the value of our share-based compensation plans fluctuates based on the Company's common share price on the TSX at each period end date, the Company helps mitigate this exposure by entering into equity forward contracts which also fluctuate with our share price. Note that unrealized and realized gains/losses on our equity forward contracts for the period are recorded through share-based compensation.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Share<br>Volume** | **Remaining Term** | **Price (C$)** | **Fair value (millions)** |
| **Equity** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity Forward Contract | 720000 | September 2028 | 8.89 | $6.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity Forward Contract | 100000 | October 2028 | 9.11 | $0.9 |
| **Total** |  |  |  | $**7.4** |

---

Refer to the Business Environment section above for a full list of hedges currently outstanding including contracts that were entered into subsequent to September 30, 2025.

Based on commodity prices and contracts in place at September 30, 2025, the Company notes the following sensitivities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a $1.00 change in the price per barrel of liquids would change pre-tax unrealized risk management by $1.5 million;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a $0.10 change in the price per mcf of natural gas would change pre-tax unrealized risk management by $0.9 million; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a 10 per cent change in our share price would change pre-tax unrealized risk management by $0.7 million.

**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.

---

| | | | |
|:---|:---|:---|:---|
|  | Impact on funds flow from operations <sup>(1)</sup> | Impact on funds flow from operations <sup>(1)</sup> | Impact on funds flow from operations <sup>(1)</sup> |
| Change of: | Change | $ millions | $/share |
| WTI - Price per barrel of liquids | WTI US$1.00 | 8.9 | 0.13 |
| WCS - Price per barrel of liquids | WCS US$1.00 | 5.6 | 0.08 |
| Liquids production | 1,000 bbl/day | 18.2 | 0.27 |
| Price per mcf of natural gas | AECO $0.10 | 0.7 | 0.01 |
| Natural gas production | 1 mmcf/day | 1.0 | 0.02 |
| Effective interest rate | 1% | 1.1 | 0.02 |
| Exchange rate ($US per $CAD) | $0.01 | 3.2 | 0.05 |

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(1)Non-GAAP financial measure or non-GAAP ratio. See "Non-GAAP and Other Financial Measures".

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| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | MANAGEMENT'S DISCUSSION AND ANALYSIS **15** |

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**Contractual Obligations and Commitments**

As at September 30, 2025, Obsidian Energy was committed to certain payments over the next five calendar years and thereafter as follows:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | 2026 | 2027 | 2028 | 2029 | Thereafter | Total |
| Long-term debt <sup>(1)</sup> | $**-** | $- | $147.8 | $- | $- | $- | $147.8 |
| Transportation | **4.3** | 16.3 | 14.2 | 12.0 | 12.1 | 5.6 | 64.5 |
| Interest obligations | **1.0** | 13.6 | 11.3 | - | - | - | 25.9 |
| Lease liability | **0.3** | 1.6 | 1.3 | 0.6 | - | 1.2 | 5.0 |
| Decommissioning liability <sup>(2)</sup> | **7.0** | 13.0 | 12.0 | 11.2 | 10.4 | 44.5 | 98.1 |
| **Total** | $**12.6** | $44.5 | $186.6 | $23.8 | $22.5 | $51.3 | $341.3 |

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(1)The 2027 figure includes our syndicated credit facility which has a term-out date of May 2027 and our senior unsecured notes due in July 2027. Refer to the Financing section above for further details. Historically, the Company has successfully renewed our syndicated credit facility.

(2)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.

At September 30, 2025, the Company had an aggregate of $80.8 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**

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| | |
|:---|:---|
| Common shares issued: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;As at September 30, 2025 | 67109878 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance under stock option and restricted and performance share unit plans | 6344 |
| &nbsp;&nbsp;&nbsp;&nbsp;As at October 29, 2025 | 67116222 |
| Options outstanding: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;As at September 30, 2025 | 1981558 |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercised | (3330) |
| &nbsp;&nbsp;&nbsp;&nbsp;As at October 29, 2025 | 1978228 |
| RSUs outstanding: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;As at September 30, 2025 | 1754085 |
| &nbsp;&nbsp;&nbsp;&nbsp;Granted | 940 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vested | (5801) |
| &nbsp;&nbsp;&nbsp;&nbsp;Forfeited | (17252) |
| &nbsp;&nbsp;&nbsp;&nbsp;As at October 29, 2025 | 1731972 |

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| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | MANAGEMENT'S DISCUSSION AND ANALYSIS **16** |

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**Supplemental Production Disclosure**

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

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months ended<br>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
| Daily production (boe/d) | **2025** | 2024 | **2025**<sup>(1)</sup> | 2024 |
| *Cardium* |  |  |  |  |
| Light oil (bbl/d) | **4411** | 12240 | **7244** | 11856 |
| Heavy oil (bbl/d) | **-** | 68 | **33** | 61 |
| NGLs (bbl/d) | **1871** | 3044 | **2319** | 2943 |
| Natural gas (mmcf/d) | **37** | 63 | **46** | 62 |
| Total production (boe/d) | **12401** | 25889 | **17232** | 25219 |
| *Peace River* |  |  |  |  |
| Light oil (bbl/d) | **1** | - | **4** | - |
| Heavy oil (bbl/d) | **12493** | 10413 | **11704** | 7948 |
| NGLs (bbl/d) | **15** | 10 | **15** | 11 |
| Natural gas (mmcf/d) | **6** | 5 | **6** | 4 |
| Total production (boe/d) | **13503** | 11175 | **12653** | 8571 |
| *Viking* |  |  |  |  |
| Light oil (bbl/d) | **523** | 1426 | **669** | 1608 |
| Heavy oil (bbl/d) | **73** | 98 | **81** | 93 |
| NGLs (bbl/d) | **43** | 72 | **43** | 64 |
| Natural gas (mmcf/d) | **3** | 4 | **3** | 4 |
| Total production (boe/d) | **1156** | 2345 | **1336** | 2462 |
| *Legacy* |  |  |  |  |
| Light oil (bbl/d) | **44** | 56 | **61** | 64 |
| Heavy oil (bbl/d) | **20** | 45 | **26** | 40 |
| NGLs (bbl/d) | **26** | 22 | **24** | 25 |
| Natural gas (mmcf/d) | **1** | 1 | **1** | 1 |
| Total production (boe/d) | **256** | 305 | **297** | 335 |
| *Total* |  |  |  |  |
| Light oil (bbl/d) | **4979** | 13722 | **7978** | 13528 |
| Heavy oil (bbl/d) | **12586** | 10624 | **11844** | 8142 |
| NGLs (bbl/d) | **1955** | 3148 | **2401** | 3043 |
| Natural gas (mmcf/d) | **47** | 73 | **56** | 71 |
| Total production (boe/d) | **27316** | 39714 | **31518** | 36587 |

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(1)On April 7, 2025, the Company closed the Pembina Disposition. Production associated with the Pembina Assets averaged approximately 11,000 boe/d in Q1 2025.

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| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | MANAGEMENT'S DISCUSSION AND ANALYSIS **17** |

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

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Sep. 30** | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 |
| Three months ended | **2025** | 2025 | 2025 | 2024 | 2024 | 2024 | 2024 | 2023 |
| Cash flow from operating activities | $**45.4** | $55.2 | $96.7 | $115.0 | $110.3 | $77.9 | $58.7 | $117.7 |
| Change in non-cash working capital | **(11.6)** | 4.3 | (5.8) | (13.5) | 6.1 | 29.7 | 13.4 | (30.3) |
| Decommissioning expenditures | **7.9** | 4.0 | 6.6 | 3.5 | 6.3 | 4.0 | 10.1 | 7.7 |
| Equity forward contracts | **7.4** | - | - | - | - | - | - | - |
| Onerous office lease settlements | **-** | - | 0.7 | 2.3 | 2.2 | 2.2 | 2.3 | 2.3 |
| Settlement of restricted share units | **-** | - | - | - | - | - | - | 0.1 |
| Deferred financing costs | **(0.4)** | (0.6) | (0.4) | (0.5) | (0.6) | (0.6) | (0.6) | (0.6) |
| Restructuring | **0.1** | 0.7 | 0.1 | - | - | - | - | - |
| Transaction costs | **0.9** | 2.2 | 2.2 | - | - | 1.4 | - | - |
| Other expenses | **-** | - | - | 0.9 | 0.4 | 0.6 | 0.5 | 0.1 |
| Funds flow from operations | $**49.7** | $65.8 | $100.1 | $107.7 | $124.7 | $115.2 | $84.4 | $97.0 |

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**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 July 1, 2025 and ending on September 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.

*<u>Non-GAAP Financial Measures</u>*

"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, equity forward contracts, 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 revenues and 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.

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|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | MANAGEMENT'S DISCUSSION AND ANALYSIS **18** |

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"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.

"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 on commodity contracts. 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.

*<u>Non-GAAP Ratios</u>*

"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 price 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.

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| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | MANAGEMENT'S DISCUSSION AND ANALYSIS **19** |

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*<u>Supplementary Financial Measures</u>*

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**

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;<u>Oil</u>  | &nbsp;&nbsp;<u>Oil</u>  | &nbsp;&nbsp;<u>Natural Gas</u> | &nbsp;&nbsp;<u>Natural Gas</u> |
| &nbsp;&nbsp;bbl | &nbsp;&nbsp;barrel or barrels | &nbsp;&nbsp;mcf  | &nbsp;&nbsp;thousand cubic feet |
| &nbsp;&nbsp;bbl/d | &nbsp;&nbsp;barrels per day | &nbsp;&nbsp;mcf/d | &nbsp;&nbsp;thousand cubic feet per day |
| &nbsp;&nbsp;boe | &nbsp;&nbsp;barrel of oil equivalent | &nbsp;&nbsp;mmcf | &nbsp;&nbsp;million cubic feet |
| &nbsp;&nbsp;boe/d | &nbsp;&nbsp;barrels of oil equivalent per day | &nbsp;&nbsp;mmcf/d | &nbsp;&nbsp;million cubic feet per day |
| &nbsp;&nbsp;MSW | &nbsp;&nbsp;Mixed Sweet Blend  | &nbsp;&nbsp;mmbtu | &nbsp;&nbsp;Million British thermal unit |
| &nbsp;&nbsp;WTI | &nbsp;&nbsp;West Texas Intermediate | &nbsp;&nbsp;AECO | &nbsp;&nbsp;Alberta benchmark price for natural gas |
| &nbsp;&nbsp;WCS | &nbsp;&nbsp;Western Canadian Select | &nbsp;&nbsp;NGL | &nbsp;&nbsp;natural gas liquids |
|  |  | &nbsp;&nbsp;LNG | &nbsp;&nbsp;liquefied natural gas |
|  |  | &nbsp;&nbsp;NYMEX | &nbsp;&nbsp;New York Mercantile Exchange price for natural gas |

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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 the area; the belief that we have a more focused light oil asset base and the anticipated benefits thereof, including our expected growth through ongoing development; the continued development of both the Bluesky and Clearwater heavy oil formations; that the Company's pace and level of future development and growth will be subject to the macro-economic environment and the Company's intention to generate acceptable returns and maintain our financial strength; our intention to renew the NCIB in 2026; our environmental remediation efforts including our focus on abandoning and reclaiming inactive wells; the expectation that compliance with environmental legislation will require additional expenditures and a failure to comply may result in fines and penalties and the effect of such fines and penalties; our intention to monitor our operations for

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|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | MANAGEMENT'S DISCUSSION AND ANALYSIS **20** |

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environmental impacts and allocate capital to reclamation and other activities in the areas we operate; our intention to follow the Alberta Energy Regulator 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; 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; and that the Company limits credit risk by executing counterparty risk procedures which include transacting only with institutions within its syndicated credit facility or companies with high credit ratings, and by obtaining financial security in certain circumstances.

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); 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 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.

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|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | MANAGEMENT'S DISCUSSION AND ANALYSIS **21** |

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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 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 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

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|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | MANAGEMENT'S DISCUSSION AND ANALYSIS **22** |

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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 <u>www.sedarplus.ca</u> and in the United States at <u>www.sec.gov</u>. 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.

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|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | MANAGEMENT'S DISCUSSION AND ANALYSIS **23** |

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## Exhibit 99.3

**Exhibit 99.3**

&nbsp;&nbsp;&nbsp;&nbsp;**Obsidian Energy Ltd.**

**Consolidated Balance Sheets**

---

| | | | |
|:---|:---|:---|:---|
|  |  | As at | As at |
| (CAD millions, unaudited) | Note | **September 30, 2025** | December 31, 2024 |
| **Assets** |  |  |  |
| Current |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash |  | $**1.0** | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable |  | **60.9** | 88.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk management | 7 | **13.6** | 8.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other |  | **13.4** | 12.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets held for sale |  | **-** | 383.7 |
|  |  | **88.9** | 492.1 |
| Non-current |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment | 3 | **1450.8** | 1349.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax | 11 | **263.6** | 273.3 |
|  |  | **1714.4** | 1622.5 |
| Total assets |  | $**1803.3** | $2114.6 |
| **Liabilities and Shareholders' Equity** |  |  |  |
| Current |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank overdraft |  | $**-** | $0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities |  | **149.2** | 175.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term debt | 4 | **-** | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of lease liabilities | 5 | **1.8** | 2.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of provisions | 6 | **16.7** | 20.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk management | 7 | **1.7** | 1.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Liabilities related to assets held for sale |  | **-** | 72.2 |
|  |  | **169.4** | 275.3 |
| Non-current |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt | 4 | **145.4** | 332.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | 5 | **2.4** | 4.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provisions | 6 | **81.4** | 96.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-current liabilities |  | **1.7** | 0.6 |
|  |  | **400.3** | 708.8 |
| Shareholders' equity |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shareholders' capital | 9 | **2083.4** | 2135.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other reserves |  | **110.1** | 108.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deficit |  | **(790.5)** | (838.0) |
|  |  | **1403.0** | 1405.8 |
| Total liabilities and shareholders' equity |  | $**1803.3** | $2114.6 |

---

Subsequent events (Note 7)

Commitments and contingencies (Note 12)

See accompanying notes to the unaudited interim consolidated financial statements.

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | INTERIM CONSOLIDATED FINANCIAL STATEMENTS **1** |

---

------

**Obsidian Energy Ltd.**

**Consolidated Statements of Income** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | Three months ended<br>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
| (CAD millions, except per share amounts, unaudited) | Note | **2025** | 2024 | **2025** | 2024 |
| &nbsp;&nbsp;&nbsp;Production revenues | 8 | $**128.7** | $218.2 | $**476.0** | $603.9 |
| &nbsp;&nbsp;&nbsp;Processing fees | 8 | **1.7** | 2.7 | **7.1** | 9.5 |
| &nbsp;&nbsp;&nbsp;Royalties |  | **(16.5)** | (28.4) | **(60.8)** | (77.5) |
| &nbsp;&nbsp;&nbsp;Sales of commodities purchased from third parties |  | **0.4** | 1.1 | **3.7** | 6.6 |
|  |  | **114.3** | 193.6 | **426.0** | 542.5 |
| &nbsp;&nbsp;&nbsp;Other income | 8 | **19.5** | 2.3 | **25.2** | 6.1 |
| &nbsp;&nbsp;&nbsp;Risk management gain (loss) | 7 | **3.0** | 1.9 | **(2.4)** | 8.4 |
|  |  | **136.8** | 197.8 | **448.8** | 557.0 |
| **Expenses** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating |  | **41.3** | 54.3 | **140.0** | 152.7 |
| &nbsp;&nbsp;&nbsp;Transportation |  | **11.2** | 15.3 | **39.8** | 41.1 |
| &nbsp;&nbsp;&nbsp;Commodities purchased from third parties |  | **0.3** | 0.8 | **3.1** | 5.5 |
| &nbsp;&nbsp;&nbsp;General and administrative |  | **4.9** | 5.0 | **15.5** | 15.4 |
| &nbsp;&nbsp;&nbsp;Share-based compensation | 10 | **7.2** | (4.4) | **9.9** | 5.5 |
| &nbsp;&nbsp;&nbsp;Depletion, depreciation and impairment | 3 | **44.6** | 69.1 | **146.6** | 185.9 |
| &nbsp;&nbsp;&nbsp;Financing | 4 | **9.1** | 14.4 | **30.5** | 39.2 |
| &nbsp;&nbsp;&nbsp;Risk management | 7 | **-** | 0.2 | **-** | 1.1 |
| &nbsp;&nbsp;&nbsp;Restructuring |  | **0.1** | - | **0.9** | - |
| &nbsp;&nbsp;&nbsp;Transaction costs | 3 | **0.9** | - | **5.3** | 1.4 |
| &nbsp;&nbsp;&nbsp;Other |  | **-** | 0.4 | **-** | 1.5 |
|  |  | **119.6** | 155.1 | **391.6** | 449.3 |
| **Income before taxes** |  | **17.2** | 42.7 | **57.2** | 107.7 |
| &nbsp;&nbsp;&nbsp;Deferred income tax | 11 | **0.4** | 9.5 | **9.7** | 25.5 |
| **Net and comprehensive income** |  | $**16.8** | $33.2 | $**47.5** | $82.2 |
| **Net income per share** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic |  | $**0.25** | $0.44 | $**0.68** | $1.07 |
| &nbsp;&nbsp;&nbsp;Diluted |  | $**0.24** | $0.42 | $**0.66** | $1.03 |
| **Weighted average shares outstanding (millions)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 9 | **67.1** | 75.9 | **70.2** | 76.5 |
| &nbsp;&nbsp;&nbsp;Diluted | 9 | **68.9** | 79.0 | **72.1** | 79.8 |

---

See accompanying notes to the unaudited interim consolidated financial statements.

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | INTERIM CONSOLIDATED FINANCIAL STATEMENTS **2** |

---

------

**Obsidian Energy Ltd.**

**Consolidated Statements of Cash Flows**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | Three months ended<br>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
| (CAD millions, unaudited) | Note | **2025** | 2024 | **2025** | 2024 |
| **Operating activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income |  | $**16.8** | $33.2 | $**47.5** | $82.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depletion, depreciation and impairment | 3 | **44.6** | 69.1 | **146.6** | 185.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financing | 4 | **4.6** | 5.0 | **13.4** | 15.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 10 | **1.7** | 2.5 | **6.2** | 6.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized risk management loss (gain) | 7 | **(3.8)** | 5.6 | **2.6** | 7.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of share disposition | 8 | **(15.2)** | - | **(15.2)** | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax | 11 | **0.4** | 9.5 | **9.7** | 25.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Decommissioning expenditures | 6 | **(7.9)** | (6.3) | **(18.5)** | (20.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity forward contracts | 7 | **(7.4)** | - | **(7.4)** | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Onerous office lease settlements |  | **-** | (2.2) | **(0.7)** | (6.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in non-cash working capital |  | **11.6** | (6.1) | **13.1** | (49.2) |
|  |  | **45.4** | 110.3 | **197.3** | 246.9 |
| **Investing activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | 3 | **(65.3)** | (85.5) | **(233.9)** | (259.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Property acquisitions | 3 | **(0.3)** | - | **(0.3)** | (84.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Property dispositions | 3 | **-** | - | **210.9** | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from share disposition | 8 | **91.4** | - | **91.4** | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in non-cash working capital |  | **15.9** | 21.1 | **(12.7)** | 8.7 |
|  |  | **41.7** | (64.4) | **55.4** | (335.2) |
| **Financing activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in long-term debt | 4 | **(47.0)** | (28.0) | **(158.0)** | 82.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of term loan |  | **-** | - | **-** | 50.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of term loan |  | **-** | (7.5) | **-** | (7.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of senior unsecured notes | 4 | **(32.4)** | - | **(34.4)** | (3.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Financing fees paid |  | **-** | - | **(0.9)** | (1.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities settlements | 5 | **(0.5)** | (0.5) | **(1.6)** | (1.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercised compensation plans |  | **0.9** | - | **(0.7)** | (1.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchase of common shares | 9 | **(8.7)** | (9.3) | **(54.9)** | (28.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax paid on repurchase of common shares |  | **-** | - | **(0.7)** | - |
|  |  | **(87.7)** | (45.3) | **(251.2)** | 88.7 |
| **Change in cash and cash equivalents** |  | **(0.6)** | 0.6 | **1.5** | 0.4 |
| **Cash and cash equivalents (overdraft), beginning of period** | **Cash and cash equivalents (overdraft), beginning of period** | **1.6** | 0.3 | **(0.5)** | 0.5 |
| **Cash and cash equivalents, end of period** |  | $**1.0** | $0.9 | $**1.0** | $0.9 |
| **Supplementary information** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash interest paid |  | $**8.8** | $12.6 | $**21.8** | $27.0 |

---

See accompanying notes to the unaudited interim consolidated financial statements.

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD 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 |  | $2135.2 | $108.6 | $(838.0) | $1405.8 |
| Net and comprehensive income |  | - | - | 47.5 | 47.5 |
| Share-based compensation | 10 | - | 6.2 | - | 6.2 |
| Issued on exercise of equity compensation plans | 9 | 4.0 | (4.7) | - | (0.7) |
| Repurchase of common shares for cancellation | 9 | (54.9) | - | - | (54.9) |
| Tax on repurchases of common shares | 9 | (0.9) | - | - | (0.9) |
| **Balance at September 30, 2025** |  | $**2083.4** | $**110.1** | $**(790.5)** | $**1403.0** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (CAD millions, unaudited) | Note | Shareholders' Capital | Other <br>Reserves | Deficit | Total |
| Balance at January 1, 2024 |  | $2175.1 | $104.1 | $(635.4) | $1643.8 |
| Net and comprehensive income |  | - | - | 82.2 | 82.2 |
| Share-based compensation | 10 | - | 6.9 | - | 6.9 |
| Issued on exercise of equity compensation plans | 9 | 2.5 | (3.7) | - | (1.2) |
| Repurchase of common shares for cancellation | 9 | (28.5) | - | - | (28.5) |
| Tax on repurchases of common shares | 9 | (0.5) | - | - | (0.5) |
| Balance at September 30, 2024 |  | $2148.6 | $107.3 | $(553.2) | $1702.7 |

---

See accompanying notes to the unaudited interim consolidated financial statements.

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD 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 7)

**1. 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.

**2. 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, except as described below.

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

**c) Material Accounting Policies**

The Company enters into prepaid equity forward contracts on our common shares to help mitigate the equity price risk associated with our share-based compensation plans. The fair value of the equity forward contract asset is recognized within risk management and is revalued on each balance sheet date. Subsequent increases or decreases in the fair value over the reporting period are recorded within share-based compensation.

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | &nbsp;&nbsp;&nbsp;&nbsp;NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS **5** |

---

------

**3. Property, plant and equipment ("PP&E")**

*<u>Oil and Gas assets/ Facilities, Corporate assets</u>*

---

| | | |
|:---|:---|:---|
| **Cost** | **Nine months ended<br>September 30, 2025** | Year ended<br>December 31, 2024 |
| Balance, beginning of period | $**8417.0** | $11223.8 |
| Capital expenditures <sup>(1)</sup> | **214.3** | 343.1 |
| Property acquisitions | **15.0** | 84.9 |
| Property dispositions | **-** | (1.5) |
| Transfer to assets held for sale | **-** | (3256.0) |
| Net decommissioning changes | **(7.4)** | 22.7 |
| Balance, end of period | $**8638.9** | $8417.0 |

---

(1)Capital expenditures totaled $233.9 million including $19.6 million associated with the disposed Pembina Assets (defined below).

---

| | | |
|:---|:---|:---|
| **Accumulated depletion and depreciation** | **Nine months ended<br>September 30, 2025** | Year ended<br>December 31, 2024 |
| Balance, beginning of period | $**7073.2** | $9287.0 |
| Depletion and depreciation | **133.1** | 245.3 |
| Impairment (reversal) | **(15.1)** | 415.3 |
| Transfer to assets held for sale | **-** | (2874.4) |
| Balance, end of period | $**7191.2** | $7073.2 |

---

---

| | | |
|:---|:---|:---|
|  |  | As at |
| **Net book value** | **September 30, 2025** | December 31, 2024 |
| Total | $**1447.7** | $1343.8 |

---

*<u>Right-of-use assets</u>*

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

---

| | | |
|:---|:---|:---|
| **Cost** | **Nine months ended<br>September 30, 2025** | Year ended<br>December 31, 2024 |
| Balance, beginning of period | $**14.8** | $14.8 |
| Additions (dispositions) | **(1.1)** | - |
| **Balance, end of period** | $**13.7** | $14.8 |

---

---

| | | |
|:---|:---|:---|
| **Accumulated amortization** | **Nine months ended<br>September 30, 2025** | Year ended<br>December 31, 2024 |
| Balance, beginning of period | $**9.4** | $7.6 |
| Amortization | **1.2** | 1.8 |
| **Balance, end of period** | $**10.6** | $9.4 |

---

---

| | | |
|:---|:---|:---|
|  |  | As at |
| **Net book value** | **September 30, 2025** | December 31, 2024 |
| Total | $**3.1** | $5.4 |

---

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | &nbsp;&nbsp;&nbsp;&nbsp;NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS **6** |

---

------

*<u>Total PP&E</u>*

Total PP&E including Oil and Gas assets/Facilities, Corporate assets and Right-of-use assets is as follows:

---

| | | |
|:---|:---|:---|
|  |  | As at |
| **PP&E** | **September 30, 2025** | December 31, 2024 |
| Oil and Gas assets/Facilities, Corporate assets | $**1447.7** | $1343.8 |
| Right-of-use assets | **3.1** | 5.4 |
| Total | $**1450.8** | $1349.2 |

---

At September 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").

*<u>Pembina Disposition</u>*

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 $210.9 million of cash (inclusive of interim closing adjustments), 9,139,784 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.

During the third quarter of 2025, the Company sold all of our InPlay Shares for total proceeds of $91.4 million and recorded a $15.2 million gain on the sale within Other Income on the Consolidated Statements of Income.

*<u>Impairments</u>* 

The Company classified the Pembina Assets as held for sale prior to the close of the Pembina Disposition in April 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 $27.4 million, primarily due to the decrease in value of the InPlay Shares at closing. The impairment was recorded within depletion, depreciation and impairment on the Consolidated Statements of Income.

During the first nine months of 2025, we recorded a $15.1 million impairment reversal (2024 - $4.2 million impairment) 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.

**4. Long-term debt**

---

| | | |
|:---|:---|:---|
|  |  | As at |
|  | **September 30, 2025** | December 31, 2024 |
| Syndicated credit facility | $**67.0** | $225.0 |
| Senior unsecured notes |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;11.95% $80.8 million, maturing July 27, 2027 | **80.8** | 114.2 |
| Total | **147.8** | 339.2 |
| Unamortized discount of senior unsecured notes | **(0.6)** | (1.1) |
| Deferred financing costs | **(1.8)** | (2.7) |
| Total long-term debt | $**145.4** | $335.4 |
| Current portion | $**-** | $3.0 |
| Non-current portion | $**145.4** | $332.4 |

---

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.

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | &nbsp;&nbsp;&nbsp;&nbsp;NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS **7** |

---

------

At September 30, 2025, the Company had senior unsecured notes outstanding totaling $80.8 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.

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 now been reduced to $17.0 million based on previous Repurchase Offers, open market purchases and redemptions. 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. The Company completed a Repurchase Offer for $1.4 million in August 2025.

Additionally, in August 2025, the Company completed a partial redemption of $30.0 million of our senior unsecured notes at a price of $1,029.88 per $1,000 principal amount.

At September 30, 2025, letters of credit totaling $4.2 million were outstanding (December 31, 2024 – $4.4 million) that reduce the amount otherwise available to be drawn on our syndicated credit facility.

Financing expense consists of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months ended<br>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
|  | **2025** | 2024 | **2025** | 2024 |
| Interest | $**4.5** | $9.4 | $**17.1** | $23.8 |
| Accretion on decommissioning liability | **2.5** | 4.1 | **9.8** | 12.4 |
| Accretion on office lease provision | **-** | - | **-** | 0.3 |
| Accretion on discount of senior unsecured notes | **0.1** | 0.1 | **0.3** | 0.3 |
| Accretion on lease liabilities | **0.1** | 0.2 | **0.3** | 0.5 |
| Loss on repurchased/redeemed senior unsecured notes | **1.5** | - | **1.6** | 0.1 |
| Deferred financing costs | **0.4** | 0.6 | **1.4** | 1.8 |
| Financing | $**9.1** | $14.4 | $**30.5** | $39.2 |

---

**5. Lease liabilities** 

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

---

| | | |
|:---|:---|:---|
|  | **Nine months ended<br>September 30, 2025** | Year ended<br>December 31, 2024 |
| Balance, beginning of period | $**6.6** | $8.0 |
| Additions (dispositions) | **(1.1)** | - |
| Accretion charges | **0.3** | 0.6 |
| Lease payments | **(1.6)** | (2.0) |
| Balance, end of period | $**4.2** | $6.6 |
| Current portion | $**1.8** | $2.1 |
| Non-current portion | $**2.4** | $4.5 |

---

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | &nbsp;&nbsp;&nbsp;&nbsp;NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS **8** |

---

------

**6. Provisions**

---

| | | |
|:---|:---|:---|
|  | As at | As at |
|  | **September 30, 2025** | December 31, 2024 |
| Decommissioning liability | $**98.1** | $115.7 |
| Office lease provision <sup>(1)</sup> | **-** | 0.7 |
| Total | $**98.1** | $116.4 |
| Current portion | $**16.7** | $20.4 |
| Non-current portion | $**81.4** | $96.0 |

---

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

**Decommissioning liability**

At September 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 September 30, 2025, the total decommissioning liability on an undiscounted, uninflated basis was $325.8 million (December 31, 2024 - $357.0 million).

Changes to the decommissioning liability were as follows:

---

| | | |
|:---|:---|:---|
|  | **Nine months ended<br>September 30, 2025** | Year ended<br>December 31, 2024 |
| Balance, beginning of period | $**115.7** | $172.6 |
| Net liabilities added <sup>(1)</sup> | **0.8** | 2.0 |
| Acquisition | **-** | 0.4 |
| Increase (decrease) due to changes in estimates | **(8.8)** | 20.3 |
| Liabilities settled | **(18.5)** | (23.9) |
| Transfers to liabilities for assets held for sale | **(0.9)** | (72.2) |
| Accretion charges | **9.8** | 16.5 |
| Balance, end of period | $**98.1** | $115.7 |
| Current portion | $**16.7** | $19.7 |
| Non-current portion | $**81.4** | $96.0 |

---

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

**7. 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 September 30, 2025, the fair values of these financial instruments approximate their carrying amounts.

The fair values of all outstanding financial commodity related and equity forward contracts are reflected on the Consolidated Balance Sheets with the changes during the period recorded in income as unrealized gains or losses for financial commodity contracts and in share-based compensation for equity forward contracts.

At September 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.

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | &nbsp;&nbsp;&nbsp;&nbsp;NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS **9** |

---

------

The following table reconciles the changes in the fair value of financial instruments outstanding:

---

| | | |
|:---|:---|:---|
| Risk management asset (liability) | **Nine months ended<br>September 30, 2025** | Year ended<br>December 31, 2024 |
| Balance, beginning of period | $**7.1** | $11.8 |
| Unrealized gain (loss) on financial instruments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Oil | **(1.2)** | 3.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Natural gas | **(1.4)** | (8.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity <sup>(1)</sup> | **0.1** | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Electricity | **-** | 0.5 |
| Equity Forward Contract | **7.3** | - |
| Total fair value, end of period | $**11.9** | $7.1 |
| Current asset portion | $**13.6** | $8.4 |
| Current liability portion | $**(1.7)** | $(1.3) |

---

(1)Unrealized gain (loss) on equity forward contracts is included in share-based compensation expense.

Obsidian Energy had the following financial instruments outstanding as at September 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.

*Commodity contracts*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Notional<br>Volume (bbl/d)** | **Remaining Term** | **Price (C$/bbl)** | **Price (C$/bbl)** | **Fair value <br>(millions)** |
| **Oil** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;WTI Swap | 12000 | October 2025 | $— | 90.11 | $1.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;WTI Swap | 11250 | November 2025 |  | 89.99 | 1.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;WTI Swap | 9250 | December 2025 |  | 89.61 | 1.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;WCS Differential | 6000 | Q4 2025 | $— | (19.30) | $(1.7) |
| **Total oil** |  |  |  |  | $**2.1** |
|  | **Notional<br>Volume (mcf/d)** | **Remaining Term** | **Price (C$/mcf)** | **Price (C$/mcf)** | **Fair value (millions)** |
| **Natural Gas** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;AECO Swap | 25118 | October 2025 | $— | 2.24 | $0.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;AECO Swap | 24171 | November 2025 - March 2026 |  | 3.31 | 1.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;AECO Swap | 20379 | April 2026 - October 2026 |  | 2.23 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;AECO Collar | 1896 | October 2025 | $2.11 - 2.64 | 2.11 - 2.64 | $0.1 |
| **Total natural gas** |  |  |  |  | $**2.4** |
| **Total** |  |  |  |  | $**4.5** |

---

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | &nbsp;&nbsp;&nbsp;&nbsp;NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS **10** |

---

------

Subsequent to September 30, 2025, the Company entered into the following additional commodity contracts:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Notional<br>Volume (mcf/d)** | **Remaining Term** | **Price (C$/mcf)** | **Price (C$/mcf)** |
| **Natural Gas** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;AECO Swap | 7109 | April 2026 - October 2026 | $— | 2.92 |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months ended<br>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
|  | **2025** | 2024 | **2025** | 2024 |
| Realized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Settlement of oil contracts gain (loss) | $**(4.0)** | $1.0 | $**(6.3)** | $0.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Settlement of natural gas contracts gain | **3.2** | 6.8 | **6.5** | 15.0 |
| Total realized risk management gain (loss) | $**(0.8)** | $7.8 | $**0.2** | $15.6 |
| Unrealized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Oil contracts gain (loss) | $**4.6** | $(1.4) | $**(1.2)** | $(1.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Natural gas contracts loss | **(0.8)** | (4.5) | **(1.4)** | (5.7) |
| Total unrealized risk management gain (loss) | **3.8** | (5.9) | **(2.6)** | (7.2) |
| Risk management gain (loss) | $**3.0** | $1.9 | $**(2.4)** | $8.4 |

---

*Prepaid Equity Forward Contracts*

Obsidian Energy is exposed to equity price risk on our common share price in relation to our share-based compensation plans. Given the value of our share-based compensation plans fluctuates based on the Company's common share price on the Toronto Stock Exchange ("TSX") at each period end date, the Company helps mitigate this exposure by entering into equity forward contracts. Unrealized and realized gains/losses on our equity forward contracts for the period are recorded through share-based compensation.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Share<br>Volume** | **Remaining Term** | **Price (C$)** | **Fair value (millions)** |
| **Equity** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity Forward Contract | 720000 | September 2028 | 8.89 | $6.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity Forward Contract | 100000 | October 2028 | 9.11 | $0.9 |
| **Total** |  |  |  | $**7.4** |

---

Subsequent to September 30, 2025, the Company entered into the following additional equity forward contracts:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Share<br>Volume** | **Remaining Term** | **Price (C$)** | **Price (C$)** |
| **Equity** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity Forward Contract | 1100000 | October 2028 | $— | 8.75 |

---

*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.

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | &nbsp;&nbsp;&nbsp;&nbsp;NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS **11** |

---

------

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.

**8. Revenue and Other Income** 

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months ended<br>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
|  | **2025** | 2024 | **2025** | 2024 |
| Oil | $**118.3** | $198.2 | $**419.9** | $533.2 |
| NGLs | **6.5** | 14.2 | **29.2** | 41.2 |
| Natural gas | **3.9** | 5.8 | **26.9** | 29.5 |
| Production revenues | **128.7** | 218.2 | **476.0** | 603.9 |
| Processing fees | **1.7** | 2.7 | **7.1** | 9.5 |
| Oil and natural gas sales | **130.4** | 220.9 | **483.1** | 613.4 |
| Other income | **19.5** | 2.3 | **25.2** | 6.1 |
| Oil and natural gas sales and other income | $**149.9** | $223.2 | $**508.3** | $619.5 |

---

Other income typically consists of road use income which totaled $5.2 million in first nine months of 2025 (2024 - $6.1 million).

In 2025, the Company received dividends on our InPlay Shares (received as part of the consideration in the Pembina Disposition) and recorded this income within Other Income. During the third quarter of 2025, InPlay paid a cash dividend of $0.09 per common share per month, resulting in the Company receiving $0.8 million during the period before the Company disposed of the InPlay Shares. For the first nine months of 2025, the Company received $3.3 million in dividend income.

In August, 2025, the Company sold all of our InPlay Shares to a third party. This consisted of selling 9,139,784 InPlay Shares, at a price per InPlay Share of $10.00 for total proceeds of $91.4 million, which resulted in a $15.2 million gain on the sale of these shares which was recorded in Other Income.

**9. Shareholders' equity**

*Issued*

---

| | | |
|:---|:---|:---|
| **Shareholders' capital** | **Common Shares** | **Amount** |
| Balance, December 31, 2023 | 77588538 | $2175.1 |
| Issued pursuant to equity compensation plans <sup>(1)</sup> | 581084 | 2.5 |
| Repurchase of common shares for cancellation | (4484820) | (41.7) |
| Tax on repurchases of common shares <sup>(2)</sup> | - | (0.7) |
| Balance, December 31, 2024 | **73684802** | **2135.2** |
| Issued pursuant to equity compensation plans <sup>(1)</sup> | **1046463** | **4.0** |
| Repurchase of common shares for cancellation | **(7621387)** | **(54.9)** |
| Tax on repurchases of common shares <sup>(2)</sup> | **-** | **(0.9)** |
| Balance, September 30, 2025 | **67109878** | $**2083.4** |

---

(1)Upon vesting or exercise of equity awards, the net benefit is recorded as a reduction of other reserves and an increase to shareholders' capital.

(2)Includes tax associated with common share repurchases less common share issuances under the Company's share-based compensation plans.

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | &nbsp;&nbsp;&nbsp;&nbsp;NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS **12** |

---

------

*Normal course issuer bid ("NCIB")*

Pursuant to our return of capital initiative to our shareholders, the Company has an NCIB with the TSX. Purchases under the NCIB are subject to having $65 million of liquidity and complying with the terms of our current credit facilities. The total consideration paid includes commissions and fees and is recorded as a reduction to Shareholders' Equity.

The Company's NCIB program consisted of the following:

---

| | | |
|:---|:---|:---|
|  | Nine months ended September 30 | Nine months ended September 30 |
|  | **2025** | 2024 |
| Number of common shares repurchased | **7621387** | 2868972 |
| Total consideration of common shares repurchased | $**54.9** | $28.5 |
| Average price per share | $**7.20** | $9.94 |

---

The Company previously renewed our NCIB in March 2025 and subsequently repurchased and cancelled 7,144,408 common shares which is the maximum number of common shares which may be repurchased under the NCIB.

*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>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
| Average shares outstanding (millions) | **2025** | 2024 | **2025** | 2024 |
| Basic | **67.1** | 75.9 | **70.2** | 76.5 |
| Dilutive impact <sup>(1)</sup> | **1.8** | 3.1 | **1.9** | 3.3 |
| Diluted | **68.9** | 79.0 | **72.1** | 79.8 |

---

(1)Includes impact of stock options and restricted share units.

**10. 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 Company helps mitigate the exposure to fluctuations in our share price by entering into equity forward contracts and the mark-to-market valuation on these contracts is also included in share-based compensation.

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.

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | &nbsp;&nbsp;&nbsp;&nbsp;NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS **13** |

---

------

Share-based compensation consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months ended<br>September 30 | Three months ended<br>September 30 | Nine months ended<br>September 30 | Nine months ended<br>September 30 |
|  | **2025** | 2024 | **2025** | 2024 |
| DSUs | $**3.3** | $(5.1) | $**2.1** | $(2.5) |
| PSUs | **2.3** | (1.8) | **1.7** | - |
| NTIP <sup>(1)</sup> | **-** | - | **-** | 1.1 |
| Equity forward contract gain <sup>(2)</sup> | **(0.1)** | - | **(0.1)** | - |
| Liability based incentive plans | $**5.5** | $(6.9) | $**3.7** | $(1.4) |
| RSUs | $**1.1** | $1.9 | $**4.7** | $5.3 |
| Options | **0.6** | 0.6 | **1.5** | 1.6 |
| Equity based incentive plans | **1.7** | 2.5 | **6.2** | 6.9 |
| Share-based compensation | $**7.2** | $(4.4) | $**9.9** | $5.5 |

---

(1)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 September 30, 2025.

(2)Relates to the equity forward contracts entered into to help manage the Company's exposure to our share-based compensation plans.

The share price used in the fair value calculation of the DSU and PSU obligations at September 30, 2025 was $9.07 per share compared to $8.36 per share on December 31, 2024 and $7.51 per share on September 30, 2024. The weighted average trading price of the Company's common shares was $7.67 for the first nine months of 2025 (2024 - $9.78). The share price used for the unrealized gain on the equity forward contract at September 30, 2025 was $9.07 per share compared to the initial average valuation of $8.92 per share.

**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)** | **Nine months ended<br>September 30, 2025** | Year ended<br>December 31, 2024 |
| Outstanding, beginning of period | **1559563** | 1290042 |
| Granted | **858980** | 713910 |
| Vested <sup>(1)</sup> | **(538937)** | (363484) |
| Forfeited | **(125521)** | (80905) |
| Outstanding, end of period | **1754085** | 1559563 |

---

(1)Vested RSUs settled in shares.

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

---

| | | |
|:---|:---|:---|
|  | Nine months ended September 30 | Nine months ended September 30 |
|  | **2025** | 2024 |
| Average fair value of RSUs granted (per RSU) | $**7.86** | $9.68 |
| 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 Sheets 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.

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | &nbsp;&nbsp;&nbsp;&nbsp;NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS **14** |

---

------

---

| | | |
|:---|:---|:---|
| **PSUs (number of shares equivalent)** | **Nine months ended<br>September 30, 2025** | Year ended<br>December 31, 2024 |
| Outstanding, beginning of period | **635910** | 896690 |
| Granted | **438140** | 271940 |
| Vested <sup>(1)</sup> | **(124610)** | (532720) |
| Forfeited | **(1620)** | - |
| Outstanding, end of period | **947820** | 635910 |

---

(1)Vested PSUs settled in cash.

---

| | | |
|:---|:---|:---|
|  | As at | As at |
| **PSU liability** | **September 30, 2025** | December 31, 2024 |
| Current | $**0.6** | $1.5 |
| Non-current | **1.7** | 0.6 |
| Total | $**2.3** | $2.1 |

---

**Option Plan** 

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine months ended<br>September 30, 2025** | **Nine months ended<br>September 30, 2025** | Year ended<br>December 31, 2024 | 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 | **2240120** | $**4.59** | 2305489 | $3.30 |
| Granted | **521070** | **7.46** | 336210 | 9.65 |
| Exercised <sup>(1)</sup> | **(776392)** | **1.64** | (401579) | 1.39 |
| Forfeited | **(3240)** | **9.65** | - | - |
| Outstanding, end of period | **1981558** | $**6.49** | 2240120 | $4.59 |
| Exercisable, end of period | **1143357** | $**5.13** | 1414406 | $3.51 |

---

(1)Exercised Options were settled in shares.

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

---

| | | |
|:---|:---|:---|
|  | Nine months ended September 30 | Nine months ended September 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 Sheets 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.

---

| | |
|:---|:---|
| **OBSIDIAN ENERGY** THIRD QUARTER 2025 | &nbsp;&nbsp;&nbsp;&nbsp;NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS **15** |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Deferred Share Units** | **Nine months ended<br>September 30, 2025** | **Nine months ended<br>September 30, 2025** | Year ended<br>December 31, 2024 | Year ended<br>December 31, 2024 |
| Outstanding, beginning of period |  | **1,960,272** |  | 1,893,280 |
| Granted |  | **75,011** |  | 66,992 |
| Outstanding, end of period |  | **2,035,283** |  | 1,960,272 |

---

---

| | | |
|:---|:---|:---|
|  | As at | As at |
| **DSU Liability** | **September 30, 2025** | December 31, 2024 |
| Current | $**18.6** | $16.5 |
| Total | $**18.6** | $16.5 |

---

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

**11. Deferred income tax asset**

---

| | | |
|:---|:---|:---|
|  | **Nine months ended<br>September 30, 2025** | Year ended<br>December 31, 2024 |
| Balance, beginning of period | $**273.3** | $210.8 |
| Deferred income tax recovery (expense) | **(9.7)** | 62.5 |
| Balance, end of period | $**263.6** | $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.

**12. 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** THIRD QUARTER 2025 | &nbsp;&nbsp;&nbsp;&nbsp;NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS **16** |

---

------

## Exhibit 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:

1. ***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 September 30, 2025.

2. ***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.

3. ***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.

4. ***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.

5. ***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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

6. **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 July 1, 2025 and ended on September 30, 2025 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date: October 30, 2025

(signed) "*Stephen Loukas*"

_______________________

Stephen Loukas

President & Chief Executive Officer

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## Exhibit 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:

1. ***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 September 30, 2025.

2. ***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.

3. ***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.

4. ***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.

5. ***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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

6. **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 July 1, 2025 and ended on September 30, 2025 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date: October 30, 2025

(signed) "*Peter Scott*"

_______________________

Peter Scott

Senior Vice President and Chief Financial Officer

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