Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information [Line Items] | |
Document Type | 40-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Trading Symbol | OBE |
Entity Registrant Name | OBSIDIAN ENERGY LTD. |
Entity Central Index Key | 0001334388 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | false |
Entity Interactive Data Current | Yes |
Title of 12(b) Security | Common Shares |
Security Exchange Name | NYSEAMER |
Entity Address, State or Province | AB |
Entity Address, Country | CA |
Entity Common Stock, Shares Outstanding | 77,588,538 |
ICFR Auditor Attestation Flag | true |
Auditor Name | KPMG LLP |
Auditor Firm ID | 85 |
Auditor Location | Calgary AB |
Document Registration Statement | false |
Document Annual Report | true |
Entity File Number | 1-32895 |
Entity Address, Address Line One | Suite 200, 207 – 9th Avenue SW |
Entity Address, City or Town | Calgary |
Entity Address, Postal Zip Code | T2P 1K3 |
City Area Code | 403 |
Local Phone Number | 777-2500 |
Audited Annual Financial Statements | true |
Document Financial Statement Error Correction [Flag] | false |
Annual Information Form | true |
Entity Incorporation, State or Country Code | A0 |
Business Contact [Member] | |
Document Information [Line Items] | |
Entity Address, State or Province | WA |
Contact Personnel Name | DL Services Inc. |
Entity Address, Address Line One | Columbia Center |
Entity Address, Address Line Two | 701 Fifth Avenue, Suite 6100 |
Entity Address, City or Town | Seattle |
Entity Address, Postal Zip Code | 98104-7043 |
City Area Code | 206 |
Local Phone Number | 903-5448 |
Consolidated Balance Sheets
Consolidated Balance Sheets - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current | ||
Cash | $ 0.5 | $ 0.8 |
Accounts receivable | 70 | 82.6 |
Risk management | 11.3 | 6.2 |
Prepaid expenses and other | 12.8 | 10.7 |
Total current assets | 94.6 | 100.3 |
Non-current | ||
Property, plant and equipment | 1,944 | 1,857.6 |
Risk management | 1 | 0 |
Deferred income tax | 210.8 | 246.4 |
Total non-current assets | 2,155.8 | 2,104 |
Total assets | 2,250.4 | 2,204.3 |
Current | ||
Accounts payable and accrued liabilities | 193.5 | 185.6 |
Current portion of long-term debt | 2 | 0 |
Current portion of lease liabilities | 1.9 | 3.2 |
Current portion of provisions | 32.1 | 34.1 |
Risk management | 0.5 | 0 |
Total current liabilities | 230 | 222.9 |
Non-current | ||
Long-term debt | 218 | 225.3 |
Lease liabilities | 6.1 | 2.8 |
Provisions | 149.9 | 165.7 |
Other non-current liabilities | 2.6 | 7.9 |
Total liabilities | 606.6 | 624.6 |
Shareholders' equity | ||
Shareholders' capital | 2,175.1 | 2,221.9 |
Other reserves | 104.1 | 101.2 |
Deficit | (635.4) | (743.4) |
Total shareholders' equity | 1,643.8 | 1,579.7 |
Total liabilities and shareholders' equity | $ 2,250.4 | $ 2,204.3 |
Consolidated Statements of Inco
Consolidated Statements of Income - CAD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Profit or loss [abstract] | ||
Production revenues | $ 720.6 | $ 897.3 |
Processing fees | 14.3 | 8.4 |
Royalties | (97.8) | (148.3) |
Sales of commodities purchased from third parties | 16.2 | 14.3 |
Gross Revenue | 653.3 | 771.7 |
Other income | 7.2 | 6.9 |
Government decommissioning assistance | (0.4) | 15.7 |
Risk management gain (loss) | 23.8 | (23.3) |
Total revenue | 683.9 | 771 |
Expenses | ||
Operating | 188.9 | 175.3 |
Transportation | 41 | 35.1 |
Commodities purchased from third parties | 14 | 12.2 |
General and administrative | 19 | 18.4 |
Share-based compensation | 16.2 | 28.1 |
Depletion, depreciation and impairment (reversal) | 211 | (111.5) |
Financing | 49.3 | 44.9 |
Risk management loss | 0.5 | 0 |
Provisions gain | 0 | (0.3) |
Foreign exchange loss gain | 0 | 0.7 |
Restructuring | 0 | 2.5 |
Transaction costs | 0 | 0.1 |
Other | 0.4 | 1.8 |
Total expenses | 540.3 | 207.3 |
Income before taxes | 143.6 | 563.7 |
Deferred income tax expense (recovery) | 35.6 | (246.4) |
Net and comprehensive income | $ 108 | $ 810.1 |
Net income per share | ||
Basic | $ 1.33 | $ 9.88 |
Diluted | $ 1.28 | $ 9.6 |
Weighted average shares outstanding (millions) | ||
Basic | 80.9 | 82 |
Diluted | 84.1 | 84.4 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating activities | ||
Net income | $ 108 | $ 810.1 |
Depletion, depreciation and impairment | 211 | (111.5) |
Provisions gain | 0 | (0.3) |
Financing | 22.1 | 15.8 |
Share-based compensation | 8 | 4.7 |
Unrealized risk management gain | (5.6) | (8.6) |
Deferred income tax expense (recovery) | 35.6 | (246.4) |
Foreign exchange loss | 0 | 0.7 |
Government decommissioning assistance | 0.4 | (15.7) |
Decommissioning expenditures | (26.6) | (18.8) |
Onerous office lease settlements | (9) | (9.2) |
Other | 0 | 1.2 |
Settlement of RSUs | (4.8) | 0 |
Change in non-cash working capital | 13.6 | 34.8 |
Cash flows from (used in) operating activities | 352.7 | 456.8 |
Investing activities | ||
Capital expenditures | (292.5) | (314.8) |
Property acquisitions | (0.6) | (4.6) |
Change in non-cash working capital | (0.5) | 28.6 |
Cash flows from (used in) investing activities | (293.6) | (290.8) |
Financing activities | ||
Increase (decrease) in long-term debt | 2.5 | (216.5) |
Issuance of senior unsecured notes, net of discount | 0 | 125 |
Repayment of senior unsecured notes | (10.3) | 0 |
Repayment of senior secured notes/PROP limited recourse loan | 0 | (71.6) |
Financing fees paid | (0.8) | (6.5) |
Lease liabilities settlements | (3.7) | (4.3) |
Exercised compensation plans | 0.3 | 1.4 |
Repurchase of common shares | (47.4) | 0 |
Cash flows from (used in) financing activities | (59.4) | (172.5) |
Change in cash and cash equivalents | (0.3) | (6.5) |
Cash and cash equivalents, beginning of year | 0.8 | 7.3 |
Cash and cash equivalents, end of year | $ 0.5 | $ 0.8 |
Statements of Changes in Shareh
Statements of Changes in Shareholders' Equity - CAD ($) $ in Millions | Total | Shareholders' Capital [member] | Other Reserves [member] | Deficit [member] |
Beginning balance at Dec. 31, 2021 | $ 763.5 | $ 2,213.8 | $ 103.2 | $ (1,553.5) |
Statement [LineItems] | ||||
Net and comprehensive income | 810.1 | 810.1 | ||
Share-based compensation | 4.7 | 4.7 | ||
Issued on exercise of equity compensation plans | 1.4 | 8.1 | (6.7) | |
Ending balance at Dec. 31, 2022 | 1,579.7 | 2,221.9 | 101.2 | (743.4) |
Statement [LineItems] | ||||
Net and comprehensive income | 108 | 108 | ||
Share-based compensation | 8 | 8 | ||
Issued on exercise of equity compensation plans | (4.5) | 0.6 | (5.1) | |
Repurchase of shares for cancellation | (47.4) | (47.4) | ||
Ending balance at Dec. 31, 2023 | $ 1,643.8 | $ 2,175.1 | $ 104.1 | $ (635.4) |
Structure of Obsidian Energy
Structure of Obsidian Energy | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Structure of Obsidian Energy | 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. |
Basis of presentation and state
Basis of presentation and statement of compliance | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Basis of presentation and statement of compliance | 2. Basis of presentation and statement of compliance a) Basis of Presentation The annual 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. Certain comparative figures have been reclassified to correspond with current period presentation. b) Statement of Compliance These annual consolidated financial statements are prepared in compliance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. The annual consolidated financial statements have been prepared on a historical cost basis, except risk management assets and liabilities which are recorded at fair value as discussed in Note 8. These annual consolidated financial statements of the Company for the year ended December 31, 2023 were approved for issuance by the Board of Directors on February 21, 2024. |
Material accounting policies
Material accounting policies | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Material accounting policies | 3. Material accounting policies a) Critical accounting judgments and key estimates and other accounting estimates The preparation of the consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the recorded amounts of assets and liabilities, disclosure of any contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the period. These and other estimates are subject to measurement uncertainty and the effect on the consolidated financial statements of changes in these estimates could be material. Estimates are more difficult to determine, and the range of potential outcomes can be wider, in periods of higher volatility and uncertainty. The impacts of events such as geopolitical issues and their impact on energy markets, increased interest and inflation rates, and a constrained supply chain market have created a higher level of volatility and uncertainty. Management has, to the extent reasonable, incorporated known facts and circumstances into the estimates made, however, actual results could differ from those estimates and those differences could be material. Management also makes judgments while applying accounting policies that could affect amounts recorded in its consolidated financial statements. Significant judgments include the identification of cash generating units (“CGUs”) for impairment testing purposes and determining whether a CGU has an impairment or impairment reversal indicator. Additionally, management has performed an assessment of the Company’s ability to comply with liquidity requirements for the 12-month period ending December 31, 2024. This assessment includes judgments relating to future debt arrangements and production volumes, forward commodity pricing, future costs including capital, operating and general and administrative, forward foreign exchange rates, interest rates, and income taxes, all of which are subject to measurement uncertainty. The following are the estimates that management has made in applying the Company’s material accounting policies that have a material effect on the amounts recognized in the consolidated financial statements. i) Reserve and resource estimates Commercial petroleum reserves are determined based on estimates of petroleum-in-place, recovery factors, forecasted production volumes and future oil and natural gas prices and forecasted costs, including operating, royalty and capital expenditures. Obsidian Energy engages an independent qualified reserve evaluator to evaluate all of the Company’s oil and natural gas reserves at each year-end. Reserve adjustments are made annually based on actual oil and natural gas volumes produced, the results from capital programs, revisions to previous estimates, new discoveries and acquisitions and dispositions made during the year and the effect of changes in forecast future oil and natural gas prices. There are a number of estimates and assumptions that affect the process of evaluating reserves. Proved reserves are the estimated quantities of oil, natural gas and natural gas liquids determined to be economically recoverable under existing economic and operating conditions with a high degree of certainty (at least 90 percent) those quantities will be exceeded. Proved plus probable reserves are the estimated quantities of oil, natural gas and natural gas liquids determined to be economically recoverable under existing economic and operating conditions with a 50 percent degree of certainty those quantities will be exceeded. Obsidian Energy reports production and reserve quantities in accordance with Canadian practices and specifically in accordance with “Standards of Disclosure for Oil and Gas Activities” (“NI 51-101”). The estimate of proved plus probable reserves is an essential part of the depletion calculation and the indicators of impairment or impairment reversal assessment and if necessary, the related impairment test and hence the recorded amount of oil and gas assets. The estimate of the cash flows associated with proved and probable reserves are a key component in the indicators of impairment or impairment reversal assessment and if necessary, the related impairment test for property, plant and equipment and the measurement of the deferred income tax asset. Obsidian Energy cautions users of this information that the process of estimating oil and natural gas reserves is subject to a level of uncertainty. The reserves are based on current and forecast economic and operating conditions; therefore, changes can be made to future assessments as a result of a number of factors, which can include commodity prices, new technology, changing economic conditions, future reservoir performance and forecast development activity. ii) Recoverability of asset carrying values Obsidian Energy assesses our property, plant and equipment (“PP&E”) for impairment by comparing the carrying amount to the recoverable amount of the underlying assets. The determination of the recoverable amount involves estimating the higher of an asset’s fair value less costs of disposal or its value-in-use, which are based on discounted future cash flows using an applicable discount rate. Future cash flows are calculated based on estimates of future proved plus probable reserves using forecasted commodity prices and are discounted using a rate that incorporates management’s current assessment of market conditions. iii) Decommissioning liability Obsidian Energy recognizes a provision for future abandonment activities in the consolidated financial statements at the net present value of the estimated future expenditures required to settle the estimated obligation at the balance sheet date. The measurement of the decommissioning liability involves the use of estimates and assumptions including the discount rate, the amount and expected timing of future abandonment costs and the inflation rate related thereto. The estimates were made by management and external consultants considering current costs, technology and enacted legislation. iv) Fair value of risk management contracts Obsidian Energy records risk management contracts at fair value with changes in fair value recognized in income. The fair values are determined using external counterparty information which is compared to observable market data. v) Taxation The calculation of deferred income taxes is based on a number of assumptions including the estimated future cash flows from proved and probable reserves, estimating the future periods in which temporary differences and other tax credits will reverse and the general assumption that substantively enacted future tax rates at the balance sheet date will be in effect when differences reverse. b) Revenue Obsidian Energy generally recognizes oil, natural gas and natural gas liquids (“NGLs”) revenue when title passes from Obsidian Energy to the purchaser or, in the case of services, as contracted services are performed. Production revenues are determined pursuant to the terms outlined in contractual agreements and are based on fixed or variable price components. The transaction price for oil, natural gas and NGLs is based on the commodity price in the month of production, adjusted for various factors including product quality and location. Commodity prices are based on monthly or daily market indices. Performance obligations in the contract are fulfilled on the last day of the month with payment typically on the 25 th day of the following month. All of the Company’s significant revenue streams are located in Alberta. Obsidian Energy may purchase commodity products from third parties to utilize in blending activities and then subsequently sell these products to our customers. These transactions are presented as separate revenue and expense items in the Consolidated Statements of Income. The Company enters into agreements for other services such as processing third party production, road usage, and other miscellaneous services. Revenue from these arrangements are recorded as processing fees or other income when control passes to the customer, which is generally when the service is provided. c) Joint arrangements The consolidated financial statements include Obsidian Energy’s proportionate interest of jointly controlled assets and liabilities and our proportionate interest of the revenue, royalties and operating expenses. A significant portion of Obsidian Energy’s development and exploration activities are conducted jointly with others and involve joint operations. Under such arrangements, Obsidian Energy has the exclusive rights to our proportionate interest in the assets and the economic benefits generated from our share of the assets. Income from the sale or use of Obsidian Energy’s interest in joint operations and our share of expenses is recognized when it is probable that the economic benefits associated with the transactions will flow to/from Obsidian Energy and the amounts can be reliably measured. d) PP&E i) Measurement and recognition Oil and gas properties are included in PP&E at cost, less accumulated depletion and depreciation and any impairment losses or reversals. The cost of PP&E includes costs incurred initially to acquire or construct the item and betterment costs. Capital expenditures are recognized as PP&E when it is probable that future economic benefits associated with the investment will flow to Obsidian Energy and the cost can be reliably measured. PP&E includes capital expenditures incurred in the development phases, acquisition of PP&E and additions to the decommissioning liability. ii) Depletion and Depreciation Except for components with a useful life shorter than the reserve life of the associated property, resource properties are depleted using the unit-of-production method based on production volumes before royalties in relation to total proved plus probable reserves. Natural gas volumes are converted to equivalent oil volumes based upon the relative energy content of six thousand cubic feet of natural gas to one barrel of oil. In determining our depletion base, Obsidian Energy includes estimated future costs to develop proved plus probable reserves. Changes to reserve estimates are included in the depletion calculation prospectively. Components of PP&E that are not depleted using the unit-of-production method are depreciated on a straight-line basis over their useful life. Turnarounds of major facilities have an estimated useful life of three to five years and corporate assets have an estimated useful life of 10 years . iii) Major maintenance and repairs Ongoing costs to maintain properties are generally expensed as incurred. These costs include the cost of labour, consumables and small parts. The costs of material replacement parts, turnarounds and major inspections are capitalized provided it is probable that future economic benefits in excess of cost will be realized and such benefits are expected to extend beyond the current operating period. The carrying amount of a replaced part is derecognized in accordance with Obsidian Energy’s derecognition policies. iv) Impairment of oil and natural gas properties Obsidian Energy reviews oil and gas properties for circumstances that indicate that CGUs may be impaired or that prior impairments can be reversed at the end of each reporting period. These indicators can be internal such as changes in estimated proved plus probable reserves in the CGU or external such as market conditions. If an indication of impairment or impairment reversal exists, Obsidian Energy completes an impairment test, which compares the estimated recoverable amount to the carrying value. The estimated recoverable amount is defined under IAS 36 (“Impairment of Assets”) as the higher of an asset’s or CGU’s fair value less costs of disposal and its value-in-use. Where the recoverable amount is less than the carrying amount, the CGU is considered to be impaired. Impairment losses identified for a CGU are allocated on a pro rata basis to the asset categories within the CGU. The impairment loss is recognized as an expense in income. Value-in-use is computed as the present value of future cash flows expected to be derived from production. Present values are calculated using an after-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Under the fair value less cost of disposal method the recoverable amount is determined using various factors, which can include external factors such as observable market conditions and comparable transactions and internal factors such as discounted cash flows related to reserve and resource studies and future development plans. The fair value less costs of disposal values used to determine the recoverable amounts of the Company’s CGUs are classified as Level 3 fair value measures as certain key assumptions are not based on observable market data but rather management’s best estimates. Impairment losses related to PP&E can be reversed in future periods if the estimated recoverable amount of the asset exceeds the carrying value. The impairment recovery is limited to a maximum of the estimated depleted historical cost if the impairment had not been recognized. The reversal of an impairment loss is recognized in depletion, depreciation and impairment. e) Share-based payments The fair value of restricted share units granted under the Restricted and Performance Share Unit Plan (“RPSU” plan) follows the equity method and recognizes compensation expense with a corresponding increase to other reserves in shareholders’ equity over the term of the units based on a graded vesting schedule. Obsidian Energy measures the fair value of units granted under this plan at the grant date using the share price from the Toronto Stock Exchange (“TSX”). The fair value is based on market prices and considers the terms and conditions of the units granted. The fair value of options granted under the Stock Option Plan (the “Option Plan”) is recognized as compensation expense with a corresponding increase to other reserves in shareholders’ equity over the term of the options based on a graded vesting schedule. Obsidian Energy measures the fair value of options granted under these plans at the grant date using the Black-Scholes option-pricing model. The fair value is based on market prices and considers the terms and conditions of the share options granted. The fair value of units granted under the Deferred Share Unit Plan (“DSU”), awards granted under the Non-Treasury Incentive Award Plan (“NTIP”) and performance share units ("PSUs") granted under the RPSU plan follow the liability method and are based on a fair value calculation on each reporting date using the units, awards and PSUs outstanding and Obsidian Energy’s share price from the TSX on each balance sheet date. The fair value of the units, awards and PSUs is expensed over the vesting period based on a graded vesting schedule. Subsequent increases and decreases in the underlying share price result in increases and decreases, respectively, to the accrued obligation until the related instruments are settled. f) Decommissioning liability The decommissioning liability is the present value of Obsidian Energy’s future costs of obligations for property, facility and pipeline abandonment and site restoration. The liability is recognized on the balance sheet with a corresponding increase to the carrying amount of the related asset. The recorded liability increases over time to its future amount through accretion charges to income. Revisions to the estimated amount or timing of the obligations are reflected prospectively as increases or decreases to the recorded liability and the related asset. Actual decommissioning expenditures, up to the recorded amount of the liability at the time, are charged to the liability as the costs are incurred. Amounts capitalized to the related assets are depleted to income consistent with the depletion or depreciation of the underlying asset. g) Taxation Income taxes are based on taxable income in a taxation year. Taxable income normally differs from income reported in the Consolidated Statements of Income (Loss) as it excludes items of income or expense that are taxable or deductible in other years or are not taxable or deductible for income tax purposes. Obsidian Energy uses the liability method of accounting for deferred income taxes. Temporary differences are calculated assuming that the financial assets and liabilities will be settled at their carrying amount. Deferred income taxes are computed on temporary differences using substantively enacted income tax rates expected to apply when deferred income tax assets and liabilities are realized or settled. A deferred income tax asset is recognized to the extent that it is probable that future taxable income will be available against which the deductible temporary differences can be utilized. Deferred income tax assets are reviewed at each reporting date and are not recognized until such time that it is probable that the related tax benefit will be realized. h) Financial instruments Classification and Measurement of Financial Instruments The classification of financial assets is determined by their context in Obsidian Energy’s operations and by the characteristics of the financial asset’s contractual cash flows. Financial assets and financial liabilities are measured at fair value on initial recognition, which is typically the transaction price unless a financial instrument contains a significant financing component. Subsequent measurement is dependent on the financial instrument’s classification, as described below: • Cash and cash equivalents (which includes cash and bank overdrafts), accounts receivable, accounts payable and accrued liabilities, lease liabilities and long-term debt are measured at amortized cost. • Risk management contracts, all of which are derivatives, are measured initially at fair value through profit or loss and are subsequently measured at fair value with changes in fair value immediately charged to earnings in the Consolidated Statements of Income (Loss). Financial assets and liabilities are offset and the net amount is reported on the balance sheet when there is a legally enforceable right to offset the recognized amounts, and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously. Impairment of Financial Assets Financial assets are assessed using an expected credit loss (“ECL”) model. The ECL model applies to financial assets measured at amortized cost, a lease receivable, a contract asset or a loan commitment and a financial guarantee. i) Embedded derivatives An embedded derivative is a component of a contract that affects the terms of another factor. These “hybrid” contracts are considered to consist of a “host” contract plus an embedded derivative. The embedded derivative is separated from the host contract and accounted for as a derivative if the following conditions are met: • The economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics and risks of the host contract; • The embedded item, itself, meets the definition of a derivative; and • The hybrid contract is not measured at fair value or designated as held for trading. j) Classification of debt or equity Obsidian Energy classifies financial liabilities and equity instruments in accordance with the substance of the contractual arrangement and the definitions of a financial liability or an equity instrument. Obsidian Energy’s debt instruments currently have requirements to deliver cash at the end of the term thus are classified as liabilities. k) Government Grants Obsidian Energy recognizes government grants as they are received or if there is reasonable assurance that the Company is in compliance with all associated conditions. The grant is recognized within the Consolidated Statements of Income (Loss) in the period in which the income is earned or the related expenditures are incurred. If the grant relates to an asset, it is recognized as a reduction to the carrying value of the asset and amortized into income over the expected useful life of the asset through lower depletion and depreciation. l) Share capital Under the Company's normal course issuer bid ("NCIB"), common shares repurchased and cancelled are accounted for as a reduction in Shareholders' capital based on the total consideration paid. The total consideration paid includes any commissions or fees paid as part of the transaction. m) New Accounting Standards Various amendments to existing standards and new accounting requirements have been released that are effective as of January 1, 2024. The Company does not anticipate the new requirements to have a material impact on the financial statements. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Property, plant and equipment | 4. Property, plant and equipment Oil and Gas assets/ Facilities, Corporate assets Cost Oil and gas assets/Facilities Corporate assets Total Balance at January 1, 2022 $ 10,352.2 $ 176.5 $ 10,528.7 Capital expenditures 313.9 0.9 314.8 Property acquisitions 4.6 - 4.6 Change in decommissioning liability (1) 83.6 - 83.6 Balance at December 31, 2022 10,754.3 177.4 10,931.7 Capital expenditures 290.7 1.8 292.5 Property acquisitions 0.6 - 0.6 Change in decommissioning liability (1) ( 1.0 ) - ( 1.0 ) Balance at December 31, 2023 $ 11,044.6 $ 179.2 $ 11,223.8 (1) Includes additions from drilling activity, facility capital spending, disposals from net property dispositions and changes in estimates as outlined in Note 7 . Accumulated depletion, depreciation and impairment Oil and gas assets/Facilities Corporate assets Total Balance at January 1, 2022 $ 9,018.1 $ 176.5 $ 9,194.6 Depletion and depreciation 170.3 0.1 170.4 Impairments 36.4 - 36.4 Impairment reversal ( 322.0 ) - ( 322.0 ) Balance at December 31, 2022 8,902.8 176.6 9,079.4 Depletion and depreciation 204.8 0.1 204.9 Impairments 2.7 - 2.7 Balance at December 31, 2023 $ 9,110.3 $ 176.7 $ 9,287.0 Net book value As at December 31 2023 2022 Total $ 1,936.8 $ 1,852.3 At December 31, 2023, future development costs of $ 1,429.2 million were included within the depletable base in the depletion and depreciation calculation (2022 - $ 1,254.8 million). Right-of-use assets The following table includes a break-down of the categories for right-of-use assets. Cost Transportation Vehicle Office Surface Total Balance, January 1, 2022 $ 16.3 $ 6.4 $ - $ 2.1 $ 24.8 Additions - 1.0 - - 1.0 Balance, December 31, 2022 16.3 7.4 - 2.1 25.8 Additions - 2.6 2.7 - 5.3 Balance, December 31, 2023 $ 16.3 $ 10.0 $ 2.7 $ 2.1 $ 31.1 Accumulated depletion, depreciation and impairment Transportation Vehicle Office Surface Total Balance, January 1, 2022 $ 12.6 $ 4.0 $ - $ 0.2 $ 16.8 Depreciation 2.2 1.4 - 0.1 3.7 Balance, December 31, 2022 14.8 5.4 - 0.3 20.5 Depreciation 1.5 1.9 - - 3.4 Balance, December 31, 2023 $ 16.3 $ 7.3 $ - $ 0.3 $ 23.9 Net book value As at December 31 2023 2022 Total $ 7.2 $ 5.3 Total PP&E Total PP&E including Oil and Gas assets, Facilities, Corporate assets and Right-of-use assets is as follows: As at December 31 PP&E 2023 2022 Oil and Gas assets/Facilities, Corporate assets $ 1,936.8 $ 1,852.3 Right-of-use assets 7.2 5.3 Total $ 1,944.0 $ 1,857.6 The Company recorded non-cash impairments of $ 2.7 million in 2023 compared to non-cash impairment reversals of $ 322.0 million and non-cash impairments of $ 36.4 million in 2022. Cardium CGU In 2023, no indicators of impairment or reversal of previous impairments were noted for the Cardium CGU. Peace River/Viking In 2023, no indicators of impairment were noted for the Peace River and Viking CGUs. Legacy CGU’s During 2023, we recorded a net impairment of $ 2.7 million (includes $ 2.9 million of impairment and $ 0.2 million of impairment reversal) in our Legacy CGU due to accelerated decommissioning spending in the area. The Legacy CGU has no recoverable amount, as such changes in our decommissioning liability are expensed each period. Prior year impairments At December 31, 2022, the Company completed an assessment to determine if indicators of impairment or an impairment reversal were present. The Company identified indicators of impairment reversal in our Cardium CGU mainly due to improved forecasted commodity prices and our expanded capital program which increased reserve volumes. This led to an impairment reversal test being completed following the fair value less costs of disposal method. The after-tax discount rate applied within the test was 12.5 percent. Upon completion of the impairment test a $ 315.3 million impairment reversal was recorded within our Cardium CGU. The following table outlines benchmark prices and assumptions, based on an average of four independent reserve evaluators’ forecasts (GLJ Ltd., Sproule Associates Limited, McDaniel & Associates Consultants and Deloitte Resource Evaluation & Advisory), used in completing the impairment tests as at December 31, 2022. WTI AECO Exchange rate Inflation rate 2023 $ 80.25 $ 4.44 $ 0.74 0.00 % 2024 78.19 4.54 0.76 2.50 % 2025 76.10 4.37 0.76 2.00 % 2026 76.96 4.44 0.77 2.00 % 2027 78.50 4.52 0.77 2.00 % 2028 – 2033 $ 84.18 $ 4.84 $ 0.77 2.00 % Thereafter (inflation percentage) 2.00 % 2.00 % - 2.00 % The following table outlines the sensitivity to possible changes of the estimated recoverable amount on the Cardium CGU that had an impairment test completed on December 31, 2022. Recoverable 1% change in 5% change in Cardium $ 1,652.6 $ 93.0 $ 119.9 Peace River/Viking/Legacy CGU’s During 2022, we recorded a net impairment of $ 29.7 million (includes $ 36.4 million of impairment and $ 6.7 million of impairment reversal) in our Legacy CGU due to accelerated decommissioning spending in the area. The Legacy CGU has no recoverable amount, as such changes in our decommissioning liability are expensed each period. In 2022, no indicators of impairment were noted for the Peace River and Viking CGUs. Impairments and impairment reversals have been recorded as Depletion, depreciation, impairment (reversal) on the Consolidated Statements of Income. |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2023 | |
Statement [Line Items] | |
Long-term debt | 5. Long-term debt As at December 31 2023 2022 Syndicated credit facility $ 107.5 $ 105.0 Senior unsecured notes 11.95 % $ 117.4 million, maturing July 27, 2027 117.4 127.6 Total 224.9 232.6 Unamortized discount of senior unsecured notes ( 1.6 ) ( 2.3 ) Deferred financing costs ( 3.3 ) ( 5.0 ) Total long-term debt $ 220.0 $ 225.3 Current portion $ 2.0 $ - Non-current portion $ 218.0 $ 225.3 The Company has a reserve-based syndicated credit facility with an aggregate amount available of $ 240.0 million. The syndicated credit facility is subject to semi-annual borrowing base redeterminations typically in May and November of each year and currently has a revolving period to May 31, 2024 and a maturity date of May 31, 2025 . Borrowings under our syndicated credit facility are available by way of either bankers’ acceptances/Canadian Dollar Offered Rates or the banks’ prime lending rate plus applicable margins. Interest and standby fees on the undrawn amount of the facilities depend on the Company's debt to earnings before interest, taxes, depreciation and amortization ("EBTIDA") ratio for the most recent four quarters. At December 31, 2023, the Company had senior unsecured notes outstanding totaling $ 117.4 million which mature on July 27, 2027 . During 2023, the Company re-purchased for cancellation $ 5.3 million principal amount of senior unsecured notes on the open market at an average price of $ 990 per $ 1,000 principal amount, in addition to the $ 5.0 million Repurchase Offer completed in the third quarter of 2023. 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, which has been reduced to $ 53.6 million based on previous Repurchase Offers and open market purchases. The 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 free cash flow available for the Repurchase Offer for the last six months of 2023 was $ 36.8 million, however, the Company is anticipating that $ 2.0 million will be available for the Repurchase Offer in March 2024, based on current liquidity estimates. This amount was recorded within the current portion of long-term debt at December 31, 2023. At December 31, 2023, letters of credit totaling $ 4.9 million were outstanding (December 31, 2022 – $ 5.1 million) that reduce the amount otherwise available to be drawn on our syndicated credit facility. Subsequent to December 31, 2023, the Company repurchased for cancellation an additional $ 1.2 million principal amount of senior unsecured notes on the open market at an average price of $ 1,016 per $ 1,000 principal amount, resulting in a total of $ 116.2 million senior unsecured notes currently outstanding. Financing expense consists of the following: Year ended December 31 2023 2022 Interest $ 27.2 $ 29.1 Accretion on decommissioning liability 17.5 11.6 Accretion on office lease provision 0.9 1.4 Accretion on other non-current liability - 0.3 Accretion on discount of senior unsecured notes 0.5 0.2 Accretion on lease liabilities 0.4 0.6 Loss on repurchased senior unsecured notes 0.5 - Deferred financing costs 2.3 2.5 Debt modification - ( 0.8 ) Financing $ 49.3 $ 44.9 |
Lease Liabilities
Lease Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Lease liabilities [abstract] | |
Lease Liabilities | 6. Lease liabilities Obsidian Energy recognizes a right-of-use asset and a lease liability at the commencement date of the lease. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date. The right-of-use asset is depreciated generally over the term of the lease. The lease liability is initially measured at the present value of the lease payments discounted at the Company's incremental borrowing rate. Total lease liabilities included in the Consolidated Balance Sheets are as follows: Year ended December 31 2023 2022 Balance, beginning of year $ 6.0 $ 8.7 Additions 5.3 1.0 Accretion charges 0.4 0.6 Lease payments ( 3.7 ) ( 4.3 ) Balance, end of year $ 8.0 $ 6.0 Current portion $ 1.9 $ 3.2 Non-current portion $ 6.1 $ 2.8 The following table sets out a maturity analysis of lease payments, disclosing the undiscounted balance after December 31, 2023. The office lease reflects a new office lease at the same premises that will become effective in 2025. 2024 2025 2026 2027 2028 Thereafter Total Vehicle $ 1.8 $ 1.3 $ 0.4 $ - $ - $ - $ 3.5 Office - 0.6 1.1 1.2 0.6 - 3.5 Surface 0.1 0.1 0.1 0.1 0.1 4.8 5.3 Total $ 1.9 $ 2.0 $ 1.6 $ 1.3 $ 0.7 $ 4.8 $ 12.3 |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Provisions | 7. Provisions As at December 31 2023 2022 Decommissioning liability $ 172.6 $ 182.3 Office lease provision (existing) 9.4 17.5 Total $ 182.0 $ 199.8 Current portion $ 32.1 $ 34.1 Non-current portion $ 149.9 $ 165.7 Decommissioning liability The decommissioning liability is based on the present value of Obsidian Energy’s net share of estimated future costs of obligations to abandon and reclaim all our wells, facilities and pipelines. These estimates were made by management using information obtained from government estimates, internal analysis and external consultants assuming current costs, technology and enacted legislation. At December 31, 2023, the decommissioning liability was determined by applying an inflation factor of 2.0 percent (December 31, 2022 - 2.0 percent) and the inflated amount was discounted using a credit-adjusted rate of 10.0 percent (December 31, 2022 – 10.0 percent) over the expected useful life of the underlying assets, currently extending over 50 years into the future. At December 31, 2023, the total decommissioning liability on an undiscounted, uninflated basis was $ 578.9 million (December 31, 2022 - $ 582.7 million). Changes to the decommissioning liability were as follows: Year ended December 31 2023 2022 Balance, beginning of year $ 182.3 $ 121.6 Net liabilities added (1) 1.3 0.3 Increase (decrease) due to changes in estimates ( 2.3 ) 83.3 Liabilities settled ( 26.6 ) ( 18.8 ) Government decommissioning assistance 0.4 ( 15.7 ) Accretion charges 17.5 11.6 Balance, end of year $ 172.6 $ 182.3 Current portion $ 23.4 $ 25.4 Non-current portion $ 149.2 $ 156.9 (1) Includes additions from drilling activity, facility capital spending and disposals related to net property dispositions. In 2022, the Alberta Energy Regulator announced a further increase in the minimum mandatory spending requirement for all oil and gas companies' inactive decommissioning liabilities starting in 2023. The change in the AER spending requirements largely contributed to the Company's increase due to changes in estimates in our decommissioning liability in 2022. Office lease provision The office lease provision represents the net present value of non-lease components on future office lease payments for the existing lease. The office lease provision was determined by applying an asset specific credit-adjusted discount rate of 6.5 percent (December 31, 2022– 6.5 percent) over the remaining life of the lease contracts, extending into January 2025. Changes to the office lease provision were as follows: Year ended December 31 2023 2022 Balance, beginning of year $ 17.5 $ 25.6 Decrease due to changes in estimates - ( 0.3 ) Settlements ( 9.0 ) ( 9.2 ) Accretion charges 0.9 1.4 Balance, end of year $ 9.4 $ 17.5 Current portion $ 8.7 $ 8.7 Non-current portion $ 0.7 $ 8.8 |
Risk management
Risk management | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Risk management | 8. Risk management Financial instruments consist of cash, accounts receivable, fair values of derivative financial instruments, accounts payable and accrued liabilities and long-term debt. At December 31, 2023, the fair values of these financial instruments approximate their carrying amounts. The fair values of all outstanding financial commodity related contracts are reflected on the Consolidated Balance Sheets with the changes during the period recorded in income as unrealized gains or losses. At December 31, 2023 and 2022, 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. The following table reconciles the changes in the fair value of financial instruments outstanding: Year ended December 31 Risk management asset (liability) 2023 2022 Balance, beginning of year $ 6.2 $ ( 2.4 ) Unrealized gain (loss) on financial instruments: Oil - 4.0 Natural gas 6.1 4.6 Electricity ( 0.5 ) - Total fair value, end of year $ 11.8 $ 6.2 Current asset portion $ 11.3 $ 6.2 Current liability portion ( 0.5 ) - Non-current asset portion 1.0 - Non-current liability portion $ - $ - Obsidian Energy records our risk management assets and liabilities on a net basis in the Consolidated Balance Sheets. At December 31, 2023 and 2022, there were no differences between the gross and net amounts. Obsidian Energy had the following financial instruments outstanding as at December 31, 2023. 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. Notional Remaining Price Fair value AECO AECO Swap 32,749 mcf/d January - March 2024 $ 3.35 /mcf $ 4.1 AECO Swap 43,365 mcf/d April 2024 - October 2024 $ 2.52 /mcf 6.4 AECO Swap 14,929 mcf/d November 2024 - March 2025 $ 3.74 /mcf 1.4 AECO Collar 4,976 mcf/d November 2024 - March 2025 $ 3.43 /mcf - $ 4.11 /mcf 0.4 Electricity Power Swap 144 MWh/d January - December 2024 $ 92.83 /MWh ( 0.5 ) Total $ 11.8 Based on commodity prices and contracts in place at December 31, 2023 a $ 0.10 change in the price per mcf of natural gas would change pre-tax unrealized risk management by $ 1.5 million and a $ 1.00 change in the price per MWh of electricity would change pre-tax unrealized risk management by $ 0.1 million. Subsequent to December 31, 2023, the Company entered into the following additional financial hedges: Notional Remaining Price Oil WCS Differential 750 bbl/d April 2024 - June 2024 ($ 18.80 )/bbl The components of risk management on the Consolidated Statements of Income are as follows: Year ended December 31 2023 2022 Realized Settlement of oil contracts gain (loss) $ 2.2 $ ( 25.5 ) Settlement of natural gas contracts gain (loss) 15.5 ( 6.4 ) Total realized risk management gain (loss) $ 17.7 $ ( 31.9 ) Unrealized Oil contracts gain $ - $ 4.0 Natural gas contracts gain 6.1 4.6 Total unrealized risk management gain 6.1 8.6 Risk management gain (loss) $ 23.8 $ ( 23.3 ) In 2022, in conjunction with our refinancing, we closed out the existing hedges put in place by our wholly owned subsidiary PROP Energy 45 Limited Partnership for a realized risk management loss of US$ 3.4 million. The components of risk management within Expenses o n the Consolidated Statements of Income are as follows: Year ended December 31 2023 2022 Unrealized Electricity contracts loss $ ( 0.5 ) $ - Total unrealized risk management loss ( 0.5 ) - Risk management loss $ ( 0.5 ) $ - 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 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. Commodity Price Risk Commodity price fluctuations are among the Company’s most significant exposures. Oil prices are influenced by worldwide factors, including, but not limited to, OPEC actions, world supply and demand fundamentals, pipeline capacity availability and geopolitical events. Natural gas prices are influenced by, including, but not limited to, the price of alternative fuel sources such as oil or coal and by North American natural gas supply and demand fundamentals including the levels of industrial activity, weather, storage levels and liquefied natural gas activity. In accordance with policies approved by Obsidian Energy’s Board of Directors, the Company may, from time to time, manage these risks through the use of swaps or other financial instruments up to a maximum of 50 percent of forecast sales volumes, net of royalties, for the balance of any current year plus one additional year forward and up to a maximum of 25 percent, net of royalties, for one additional year ther eafter. Ri sk management limits included in Obsidian Energy’s policies may be exceeded with specific approval from the Board of Directors. The Board of Directors approved the following modifications to our hedging policy as follows: • Allow for hedges of up to 50 % of oil volumes net of royalties on a rolling 15 month period, with up to 80 % in the prompt three month period at any given time; • Allow for hedges of up to 80 % of natural gas volumes, net of royalties for the "2023 winter gas months", being the months of January to and including March 2024 and for the “2024 winter gas months”, being the months of November 2024 to and including March 2025; • Allow for hedges of up to 90 % of natural gas volumes, net of royalties for the “summer gas months”, being the months of April to and including October 2024. Foreign Currency Rate Risk Prices received for oil are referenced in US dollars, thus Obsidian Energy’s realized oil prices are impacted by Canadian dollar to US dollar exchange rates. When considered appropriate, the Company may use financial instruments to fix or collar future exchange rates to fix the Canadian dollar equivalent of oil revenues. Credit Risk Credit risk is the risk of loss if purchasers or counterparties do not fulfill their contractual obligations. As at December 31, 2023, the Company’s maximum exposure to credit risk was $ 82.8 million (2022 – $ 89.6 million) which was comprised of $ 70.0 million (2022 - $ 82.6 million) being the carrying value of the accounts receivable, $ 12.3 million (2022 – $ 6.2 million) related to the fair value of the derivative financial assets and cash of $ 0.5 million (2022 - $ 0.8 million). The Company’s accounts receivable are principally with customers in the oil and natural gas industry and are generally subject to normal industry credit risk, which includes the ability to recover unpaid receivables by retaining the partner’s share of production when Obsidian Energy is the operator or the potential to net offsetting payables to mitigate exposure. Obsidian Energy continuously monitors credit risk and maintains credit policies to ensure collection risk is limited. For oil and natural gas sales and financial derivatives, a counterparty risk procedure is followed whereby each counterparty is reviewed on a regular basis for the purpose of assigning a credit limit and may be requested to provide security if determined to be prudent. For financial derivatives, the Company normally transacts with counterparties who are members of our banking syndicate or counterparties that have investment grade bond ratings. Credit events related to all counterparties are monitored and credit exposures are reassessed on a regular basis. At December 31, 2023, $ 1.3 million of accounts receivable are past due (90+ days) but are considered to be collectible (2022 - $ 1.0 million). The lifetime ECL allowances related to Obsidian Energy’s commodity product sales receivables and joint venture receivables recognized in accounts receivable was nominal as at and for the years ended December 31, 2023 and 2022. A s at December 31, the following accounts receivable amounts were outstanding: Current 30-90 days 90+ days Total 2023 $ 63.0 $ 5.7 $ 1.3 $ 70.0 2022 $ 76.5 $ 5.1 $ 1.0 $ 82.6 Interest Rate Risk A portion of the Company’s debt capital can be held in floating-rate bank facilities, which results in exposure to fluctuations in short-term interest rates. From time to time, Obsidian Energy may increase the certainty of our future interest rates by entering fixed interest rate debt instruments or by using financial instruments to swap floating interest rates for fixed rates or to collar interest rates. As at December 31, 2023, 48 percent of the Company’s long-term debt instruments were exposed to changes in short-term interest rates (2022 – 45 percent). As at December 31, 2023, a total of $ 117.4 million (2022– $ 127.6 million) of fixed interest rate debt instruments was outstanding with a remaining term of 3.6 years (2022 – 4.6 years) and an interest rate of 11.95 percent (2022– 11.95 percent). Liquidity Risk Liquidity risk is the risk that the Company will be unable to meet its financial liabilities as they come due. Management utilizes short and long-term financial and capital forecasting programs to ensure credit facilities are sufficient relative to forecast debt levels and capital program levels are appropriate. Management also regularly reviews capital markets to identify opportunities to optimize the debt capital structure on a cost-effective basis. In the short term, liquidity is managed through daily cash management activities, short-term financing strategies and the use of swaps and other financial instruments to increase the predictability of cash flow from operating activities. The following table outlines estimated future obligations for non-derivative financial liabilities as at December 31, 2023: Long-term debt Accounts payable & accrued liabilities Share-based compensation accrual Total 2024 $ - $ 163.9 $ 29.6 $ 193.5 2025 107.5 - 1.5 109.0 2026 - - 1.1 1.1 2027 117.4 - - 117.4 2028 - - - - Thereafter $ - $ - $ - $ - Climate Change Risk The Company has considered the impact of climate change and related risks on the amounts recorded in the financial statements for the year ended December 31, 2023. This includes, but is not limited to, the Company’s impairment assessment, current assets and liabilities, syndicated credit facility, capital expenditures and property, plant and equipment. At December 31, 2023 , no impairment or impairment reversal test was required. As such the Company did not need to evaluate if a specific adjustment to the recoverable amount to incorporate the potential risk of the evolving demand for energy was required. The Company’s financial results for 2023 were not materially impacted from a climate event. In 2023 , the Company did not incur material weather related damages to our property, plant and equipment. Management is not aware of a material disruption in our supply chain or the marketers of the Company’s product related to climate events. The Company will continue to monitor climate change and the potential impacts. |
Revenue and Other Income
Revenue and Other Income | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Revenue and Other Income | 9. Revenue and Other Income The Company’s significant revenue streams consist of the following: Year ended December 31 2023 2022 Oil $ 596.0 $ 697.9 NGLs 51.2 63.1 Natural gas 73.4 136.3 Production revenues 720.6 897.3 Processing fees 14.3 8.4 Oil and natural gas sales 734.9 905.7 Other income 7.2 6.9 Oil and natural gas sales and other income $ 742.1 $ 912.6 Other income includes $ 7.2 million in road use recoveries for 2023 (2022 - $ 6.9 million). |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Income taxes | 10. Income taxes The provision for income taxes reflects an effective tax rate that differs from the combined federal and provincial statutory tax rate as follows: Year ended December 31 2023 2022 Income before taxes $ 143.6 $ 563.7 Combined statutory tax rate (1) 23.0 % 23.0 % Computed income tax expense $ 33.0 $ 129.7 Increase (decrease) resulting from: Share-based compensation 1.8 1.1 Non-taxable foreign exchange loss - 0.2 Recognition of deferred tax asset - ( 378.6 ) Adjustments related to prior years 0.8 ( 0.4 ) Other - 1.6 Deferred income tax expense (recovery) $ 35.6 $ ( 246.4 ) (1) The tax rate represents the combined federal and provincial statutory tax rates for the Company and our subsidiaries for the years ended December 31, 2023 and December 31, 2022 . The net deferred income tax asset is comprised of the following: Balance Provision (Recovery) Balance Deferred tax liabilities (assets) PP&E $ 249.5 $ ( 1.6 ) $ 247.9 Leases ( 5.5 ) 1.5 ( 4.0 ) Risk Management 1.4 1.3 2.7 Decommissioning liability ( 41.9 ) 2.2 ( 39.7 ) Share-based compensation ( 7.3 ) ( 0.1 ) ( 7.4 ) Non-capital losses ( 442.6 ) 32.3 ( 410.3 ) Net deferred tax liability (asset) $ ( 246.4 ) $ 35.6 $ ( 210.8 ) Balance Provision (Recovery) Balance Deferred tax liabilities (assets) PP&E $ 153.5 $ 96.0 $ 249.5 Leases ( 7.9 ) 2.4 ( 5.5 ) Risk Management ( 0.5 ) 1.9 1.4 Decommissioning liability ( 27.9 ) ( 14.0 ) ( 41.9 ) Share-based compensation ( 4.0 ) ( 3.3 ) ( 7.3 ) Non-capital losses ( 113.2 ) ( 329.4 ) ( 442.6 ) Net deferred tax liability (asset) $ - $ ( 246.4 ) $ ( 246.4 ) As at December 31, 2023 , Obsidian Energy had approximately $ 2.4 billion (2022 – $ 2.4 billion) in total tax pools, including non-capital losses of $ 1.8 billion (2022 - $ 1.9 billion). The non-capital losses are available for immediate deduction against future taxable income and expire in the years 2026 through 2041. The Company also had approximately $ 61.3 million of Federal Scientific Research and Experimental Development (SR&ED) credits which expire in the years 2029 through 2036. Deferred income tax assets may only be recognized to the extent that it is probable that future taxable profits will be available against which unused tax losses and deductible temporary differences can be utilized. The Company expects to have sufficient taxable profits in future years in order to fully utilize the remaining deferred tax asset balance of $ 210.8 million at December 31, 2023. At December 31, 2023 , Obsidian Energy had realized and unrealized net capital losses of $ 837.4 million (2022 - $ 711.2 million). A deferred tax asset has not been recognized in respect of these losses as they may only be applied against future capital gains. The Company has income tax filings that are subject to audit by taxation authorities, which may impact our deferred income tax position or amount. The Company does not anticipate adjustments arising from these audits and believes we have adequately provided for income taxes based on available information, however, adjustments that arise could be material. |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Shareholders' equity | 11. Shareholders’ equity a) Authorized i) An unlimited number of Common Shares . ii) 90,000,000 preferred shares issuable in one or more series. If issued, preferred shares of each series would rank on parity with the preferred shares of other series with respect to accumulated dividends and return on capital. Preferred shares would have priority over the common shares with respect to the payment of dividends or the distribution of assets. b) Issued Shareholders’ capital Common Shares Amount Balance, December 31, 2021 80,753,516 $ 2,213.8 Issued pursuant to equity compensation plans (1) 1,688,694 8.1 Balance, December 31, 2022 82,442,210 2,221.9 Issued pursuant to equity compensation plans (1) 229,963 0.6 Repurchase of common shares for cancellation ( 5,083,635 ) ( 47.4 ) Balance, December 31, 2023 77,588,538 $ 2,175.1 (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. Pursuant to our return of capital initiative to our shareholders, in the first quarter of 2023 we received approval from the Toronto Stock Exchange for a NCIB. Purchases under the NCIB will be subject to having $ 65 million of liquidity and complying with the terms of our current credit facilities. In 2023, the Company utilized the NCIB which resulte d in 5,083,635 common shares being repurchased and canceled at an average p rice of $ 9.32 p er share for total consideration of $ 47.4 million . The total consideration paid includes commissions and fees and is recorded as a reduction to Shareholders' Equity. Year ended December 31 Other Reserves 2023 2022 Balance, beginning of year $ 101.2 $ 103.2 Share-based compensation expense 8.0 4.7 Net benefit on options exercised (1) ( 5.1 ) ( 6.7 ) Balance, end of year $ 104.1 $ 101.2 (1) Upon exercise of options, the net benefit is recorded as a reduction of other reserves and an increase to shareholders’ capital. Preferred Shares No Preferred Shares were issued or outstanding. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Share-based compensation | 12. Share-based compensation Restricted and Performance Share Unit plan ("RPSU plan") Restricted Share Unit ("RSU") 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 Toronto Stock Exchange ("TSX"). Consideration can be in the form of cash or shares purchased on the open market or issued from treasury. Year ended December 31 RSUs (number of shares equivalent) 2023 2022 Outstanding, beginning of year 874,130 1,167,351 Granted 991,860 537,225 Vested (1) ( 541,357 ) ( 784,514 ) Forfeited ( 34,591 ) ( 45,932 ) Outstanding, end of year 1,290,042 874,130 (1) Vested RSUs in 2023 were settled in cash and in 2022 were settled in shares. The fair value and weighted average assumptions of the RSUs granted during the years were as follows: Year ended December 31 2023 2022 Average fair value of RSUs granted (per RSU) $ 9.86 $ 10.59 Expected life of RSUs (years) 2.6 2.9 Expected forfeiture rate 0.1 % 0.5 % PSU 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 Sheet 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. Year ended December 31 PSUs (number of shares equivalent) 2023 2022 Outstanding, beginning of year 949,040 1,138,465 Granted 239,360 124,610 Vested (1) ( 291,710 ) ( 181,018 ) Forfeited - ( 133,017 ) Outstanding, end of year 896,690 949,040 (1) Vested PSUs in 2023 were settled in cash and in 2022 were settled in shares. As at December 31 PSU liability 2023 2022 Current $ 9.8 $ 5.2 Non-current 2.6 6.1 Total $ 12.4 $ 11.3 Stock Option Plan Obsidian Energy has a Stock Option Plan that allows the Company to issue options to acquire common shares (“Options”) to officers, employees, directors and other service providers. Year ended December 31 2023 2022 Options Number of Weighted Average Number of Weighted Average Outstanding, beginning of year 2,274,672 $ 2.30 3,021,672 $ 1.56 Granted 260,780 10.32 156,400 10.64 Exercised (1) ( 229,963 ) 1.42 ( 903,400 ) 1.27 Outstanding, end of year 2,305,489 $ 3.30 2,274,672 $ 2.30 Exercisable, end of year 1,064,115 $ 2.02 749,498 $ 1.69 (1) Exercised options in 2023 and 2022 were settled in shares. The fair value and weighted average assumptions of the Options granted during the years were as follows: Year ended December 31 2023 2022 Average fair value of Options granted (per Option) $ 10.32 $ 6.56 Expected volatility 78.8 % 87.0 % Expected life of Options (years) 3.7 3.9 Expected forfeiture rate 0.2 % 0.3 % Non-Treasury Incentive Award Plan (“NTIP”) The NTIP allows Obsidian Energy to grant NTIP Restricted Awards to employees of the Company. The NTIP obligation is classified as a liability on our Consolidated Balance Sheet as the NTIP restricted awards are settled in cash. The NTIP obligation fluctuates based on the Company’s share price on the TSX at each period end date. Employees receive consideration only when the NTIP restricted awards vest. . Year ended December 31 NTIP Restricted Awards 2023 2022 Outstanding, beginning of year 689,228 1,093,800 Granted - 3,400 Vested (1) ( 344,074 ) ( 363,871 ) Forfeited ( 16,160 ) ( 44,101 ) Outstanding, end of year 328,994 689,228 (1) Vested NTIPs in 2023 and 2022 were settled in cash. As at December 31 NTIP liability 2023 2022 Current $ 2.7 $ 2.6 Non-current - 1.8 Total $ 2.7 $ 4.4 Deferred Share Unit (“DSU”) 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 Sheet 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. Year ended December 31 Deferred Share Units 2023 2022 Outstanding, beginning of year 1,811,245 2,018,499 Granted 82,035 42,509 Exercised - ( 249,763 ) Outstanding, end of year 1,893,280 1,811,245 As at December 31 DSU Liability 2023 2022 Current $ 17.1 $ 16.6 Non-current - - Total $ 17.1 $ 16.6 In 2023 , none of the DSUs were redeemed ( 2022 - $ 3.6 million). At December 31, 2023 , the Company had no outstanding DSUs that were redeemable. Share-based compensation Share-based compensation consisted of the following: Year ended December 31 2023 2022 DSUs $ 0.5 $ 9.5 PSUs 6.3 8.0 NTIP 1.4 5.9 Cash settled share-based incentive plans $ 8.2 $ 23.4 RSUs $ 6.7 $ 3.4 Options 1.3 1.3 Equity settled share-based incentive plans 8.0 4.7 Share-based compensation $ 16.2 $ 28.1 The share price used in the fair value calculation of the DSU, NTIP and PSU obligations at December 31, 2023 was $ 8.99 per share (2022 – $ 8.98 ). Employee retirement savings plan Obsidian Energy has an employee retirement savings plan (the “savings plan”) for the benefit of all employees. Under the savings plan, employees may elect to contribute up to 10 percent of their salary and Obsidian Energy matches these contributions at a rate of $1.00 for each $1.00 of employee contribution ; provided that in order for an employee to receive the full matching contribution they must allocate at least 25 percent ( 50 percent for officers) of their contribution towards the purchase of Obsidian Energy shares. Both the employee’s and Obsidian Energy’s contributions are used to acquire Obsidian Energy common shares or are placed in low-risk investments. Shares are purchased in the open market at prevailing market prices. |
Per share amounts
Per share amounts | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Per share amounts | 13. Per share amounts The number of incremental shares included in diluted earnings per share is computed using the average volume-weighted market price of shares for the year. Obsidian Energy computes the dilutive impact of the equity instruments other than common shares assuming the proceeds received from the exercise of the in-the-money share options and restricted share units grants under the RPSU plan are used to purchase common shares at average market prices. Year ended December 31 2023 2022 Net income $ 108.0 $ 810.1 The weighted average number of shares used to calculate per share amounts was as follows: Year ended December 31 Average shares outstanding (millions) 2023 2022 Basic 80.9 82.0 Dilutive impact (1) 3.2 2.4 Diluted 84.1 84.4 (1) Includes impact of stock options and RSUs. For 2023, there were 0.3 million shares on a weighted average basis (2022 – 0.2 million) related to options outstanding under the Option Plan and RSUs outstanding under the RPSU plan that were considered anti-dilutive and/or not in the money and that have been excluded. |
Changes in non-cash working cap
Changes in non-cash working capital increase (decrease) | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Changes in non-cash working capital increase (decrease) | 14 . Changes in non-cash working capital increase (decrease) Year ended December 31 2023 2022 Accounts receivable $ 12.6 $ ( 13.7 ) Prepaid expenses and other ( 2.1 ) ( 1.6 ) Accounts payable, accrued liabilities and (1) 2.6 78.7 $ 13.1 $ 63.4 Operating activities 13.6 34.8 Investing activities ( 0.5 ) 28.6 $ 13.1 $ 63.4 Interest paid in cash $ 27.5 $ 29.2 Income taxes paid (recovered) in cash $ - $ - (1) Includes share-based compensation plans. |
Capital management
Capital management | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Capital management | 15. Capital management Obsidian Energy manages our capital to provide a flexible structure to support capital programs, production maintenance and other operational strategies. Attaining a strong financial position enables the capture of business opportunities and supports Obsidian Energy’s business strategy of providing strong shareholder returns. Obsidian Energy defines capital as the sum of shareholders’ equity and debt. Shareholders’ equity includes shareholders’ capital, other reserves and retained earnings (deficit). Debt includes drawings under our syndicated credit facility and our senior unsecured notes. Management reviews Obsidian Energy’s capital structure to allow our objectives and strategies to be met. The capital structure is reviewed based on a number of key factors including, but not limited to, current market conditions, hedging positions, trailing and forecast debt to funds flow ratios and other economic risk factors. The Company intends to continue to identify and evaluate hedging opportunities in order to reduce our exposure to fluctuations in commodity prices and protect our future cash flows and capital programs. As at December 31 2023 2022 Components of capital Shareholders' equity $ 1,643.8 $ 1,579.7 Long-term debt $ 224.9 $ 232.6 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Commitments and contingencies | 16 . Commitments and contingencies Obsidian Energy is committed to certain payments over the next five calendar years and thereafter as follows: 2024 2025 2026 2027 2028 Thereafter Total Long-term debt (1) $ - $ 107.5 $ - $ 117.4 $ - $ - $ 224.9 Transportation 9.5 7.3 6.1 4.6 3.7 7.8 39.0 Interest obligations 23.3 17.9 14.0 14.0 - - 69.2 Office lease (existing) 10.0 0.8 - - - - 10.8 Lease liability 1.9 2.0 1.6 1.3 0.7 4.8 12.3 Decommissioning liability 23.4 21.8 20.2 18.7 17.4 71.0 172.5 Total $ 68.1 $ 157.3 $ 41.9 $ 156.0 $ 21.8 $ 83.6 $ 528.7 (1) The 2025 figure includes our syndicated credit facility which has a term-out date of May 2025 . The 2027 figure includes our senior unsecured notes due in July 2027 . Refer to Note 5 for further details. Historically, the Company has successfully renewed its syndicated credit facility. Obsidian Energy’s commitments relate to the following: • Transportation commitments relate to costs for future pipeline access. • Interest obligations are the estimated future interest payments related to Obsidian Energy’s debt instruments. • Office leases pertain to total existing leased office space, which expires in January 2025 • Lease liabilities pertain to various vehicle, surface lease commitments and the new office lease (begins in 2025) that meet the definition of a lease under IFRS 16. • The decommissioning liability represents the inflated, discounted future reclamation and abandonment costs that are expected to be incurred over the life of our properties. The Company is involved in various litigation and claims in the normal course of business and records provisions for claims as required. |
Related-party transactions
Related-party transactions | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Related-party transactions | 17 . Related-party transactions Operating entities The consolidated financial statements include the results of Obsidian Energy Ltd. and our wholly owned subsidiaries, including the Obsidian Energy Partnership. Transactions and balances between Obsidian Energy Ltd. and all of our subsidiaries are eliminated upon consolidation. Compensation of key management personnel In 2023, key management personnel included the President and Chief Executive Officer, Chief Financial Officer, Senior Vice-Presidents, Vice Presidents and the Board of Directors. The Human Resources, Governance & Compensation Committee makes recommendations to the Board of Directors who approves the appropriate remuneration levels for management based on performance and current market trends. Compensation levels of the Board of Directors are also recommended by the Human Resources, Governance & Compensation Committee of the Board. The remuneration of the directors and key management personnel of Obsidian Energy during the year is below. Year ended December 31 2023 2022 Salary and employee benefits $ 3.2 $ 4.2 Termination benefits - 0.9 Share-based payments (1) 9.0 18.1 $ 12.2 $ 23.2 (1) Includes changes in the fair value of PSUs, DSUs and non-cash charges related to the Option Plan and RSUs outstanding under the RPSU plan (equity method) for key management personnel. |
Supplemental Items
Supplemental Items | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Supplemental Items | 18 . Supplemental Items In the consolidated financial statements, compensation costs are included in both operating and general and administrative expenses. For 2023, employee compensation costs of $ 15.9 million (2022 - $ 14.2 million) were included in operating expenses and $ 24.7 million (2022 - $ 20.8 million) were included in general and administrative expenses on a gross basis. |
Government grants
Government grants | 12 Months Ended |
Dec. 31, 2023 | |
Government Grants [Abstract] | |
Government grants | 19. Government grants The Company received grant allocations under the Alberta Site Rehabilitation Program beginning in 2020. These awards allowed the Company to expand our abandonment activities for wells, pipelines, facilities, and related site reclamation and thus reduce our decommissioning liability. The Company repaid $ 0.4 million of net grants during 2023 as the government closed and reconciled the program (2022 – $ 15.7 million utilized). |
Supplementary Oil and Gas Infor
Supplementary Oil and Gas Information - (Unaudited) | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Supplementary Oil and Gas Information - (Unaudited) | SUPPLEMENTARY OIL AND GAS INFORMATION - (UNAUDITED) The disclosures contained in this section provide oil and gas information in accordance with the U.S. standard, “Extractive Activities – Oil and Gas”. Obsidian Energy’s financial reporting is prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. For the years ended December 31, 2023 and 2022, Obsidian Energy has filed our reserves information under National Instrument 51-101 – “Standards of Disclosure of Oil and Gas Activities” (“NI 51-101”), which prescribes the standards for the preparation and disclosure of reserves and related information for companies listed in Canada. There are significant differences to the type of volumes disclosed and the basis from which the volumes are economically determined under the United States Securities and Exchange Commission (“SEC”) requirements and NI 51-101. The SEC requires disclosure of net reserves, after royalties, using 12-month average prices and current costs; whereas NI 51-101 requires gross reserves, before royalties, using forecast pricing and costs. Therefore, the difference between the reported numbers under the two disclosure standards can be material. For the purposes of determining proved oil and natural gas reserves for SEC requirements as at December 31, 2023 and 2022, Obsidian Energy used the 12-month average price, defined by the SEC as the unweighted arithmetic average of the first day-of-the-month price for each month within the 12-month period prior to the end of the reporting period. NET PROVED OIL AND NATURAL GAS RESERVES Obsidian Energy engaged independent qualified reserve evaluator, GLJ Ltd. (“GLJ”), to evaluate Obsidian Energy’s proved developed and proved undeveloped oil and natural gas reserves as at December 31, 2023 and as at December 31, 2022. As at December 31, 2023 and 2022, all of Obsidian Energy’s oil and natural gas reserves are located in Canada. The changes in the Company’s net proved reserve quantities are outlined below . Net reserves include Obsidian Energy’s remaining working interest and royalty reserves, less all Crown, freehold, and overriding royalties and other interests that are not owned by Obsidian Energy. Proved reserves are those estimated quantities of oil, natural gas and natural gas liquids that can be estimated with a high degree of certainty to be economically recoverable under existing economic and operating conditions. Proved developed reserves are those proved reserves that are expected to be recovered from existing wells and installed facilities or, if facilities have not been installed, that would involve a low expenditure to put the reserves on production. Proved developed reserves may be subdivided into producing and non-producing. Proved undeveloped reserves are those reserves that are expected to be recovered from known accumulations where a significant expenditure is required to render them capable of production. Obsidian Energy cautions users of this information as the process of estimating oil and natural gas reserves is subject to a level of uncertainty. The reserves are based on economic and operating conditions; therefore, changes can be made to future assessments as a result of a number of factors, which can include new technology, changing economic conditions and development activity. YEAR ENDED DECEMBER 31, 2023 CONSTANT PRICES AND COSTS Light and Medium Oil (mmbbl) Heavy Oil and Bitumen (mmbbl) Natural Gas (bcf) Coal bed methane (bcf) Natural Gas Liquids (mmbbl) Barrels of Oil Equivalent (mmboe) Net Proved Developed and Proved Undeveloped Reserves (1) December 31, 2022 50 9 272 1 10 115 Extensions & Discoveries 2 4 8 - - 7 Improved Recovery & Infill Drilling 1 - 13 - - 4 Technical Revisions 3 1 8 - 2 7 Acquisitions - - 1 - - - Dispositions - - - - - - Production ( 5 ) ( 2 ) ( 24 ) - ( 1 ) ( 12 ) Change for the year 1 3 5 - 1 6 December 31, 2023 51 12 276 - 11 121 Developed 30 9 166 - 6 73 Undeveloped 21 4 110 - 5 48 Total (2) 51 12 276 - 11 121 (1) Columns may not add due to rounding. (2) Obsidian Energy does not file any estimates of total net proved oil or natural gas reserves with any U.S. federal authority or agency other than the SEC. YEAR ENDED DECEMBER 31, 2022 CONSTANT PRICES AND COSTS Light and Medium Oil (mmbbl) Heavy Oil and Bitumen (mmbbl) Natural Gas (bcf) Coal bed methane (bcf) Natural Gas Liquids (mmbbl) Barrels of Oil Equivalent (mmboe) Net Proved Developed and Proved Undeveloped Reserves (1) December 31, 2021 52 10 220 - 9 108 Extensions & Discoveries 5 1 39 - 1 13 Improved Recovery & Infill Drilling 2 - 5 1 - 3 Technical Revisions ( 4 ) - 31 - 1 2 Acquisitions - - - - - - Dispositions - - - - - - Production ( 4 ) ( 2 ) ( 23 ) - ( 1 ) ( 11 ) Change for the year ( 2 ) ( 1 ) 52 1 1 7 December 31, 2022 50 9 272 1 10 115 Developed 28 7 173 1 6 71 Undeveloped 22 2 99 - 4 44 Total (2) 50 9 272 1 10 115 (1) Columns may not add due to rounding. (2) Obsidian Energy does not file any estimates of total net proved oil or natural gas reserves with any U.S. federal authority or agency other than the SEC. In 2023, the Company continued to build on our 2022 activity with a development program across our Peace River, Willesden Green/Pembina (Cardium) and Viking areas. Additionally, the Company continued with appraisal work in our Peace River area, specifically in our Clearwater play. In 2023, a total of 77 ( 65.1 net) wells were drilled with 70 ( 60.3 net) wells brought on production. In 2023, average WTI oil prices were lower than in 2022. In the first half of 2023, oil prices decreased to US$ 70 per bbl due to concerns over the growth of the global economy and the corresponding impact on oil demand. In the second half of 2023, oil prices increased, however, remained volatile as the announcement of extended OPEC+ cuts were partially offset by the continued concern over the potential for a global recession. In the prior year, during the first half of 2022, WTI oil prices reached highs over US$100.00 as concerns regarding supply and the ongoing sanctions on Russia due to the impact of the Russia/Ukraine conflict impacted prices. In the second half of 2022, oil prices were volatile as a result of COVID-19 impacts in China and potential recession fears in North America as interest rates continued to increase, leading to potential concerns over demand. CAPITALIZED COSTS As at December 31, ($CAD millions) 2023 2022 Proved oil and gas properties $ 11,044.6 $ 10,754.3 Unproved oil and gas properties - - Total capitalized costs 11,044.6 10,754.3 Accumulated depletion and depreciation ( 9,110.3 ) ( 8,902.8 ) Net capitalized costs $ 1,934.3 $ 1,851.5 COSTS INCURRED For the years ended December 31, ($CAD millions) 2023 2022 Property acquisition (disposition) costs (1) Proved oil and gas properties – acquisitions $ 0.6 $ 4.6 Proved oil and gas properties – dispositions - - Unproved oil and gas properties 4.7 - Exploration costs (2) - - Development costs (3) 286.0 313.9 Change in decommissioning liability estimate ( 1.0 ) 83.6 Capital expenditures $ 290.3 $ 402.1 (1) Acquisitions are net of disposition of properties. (2) Cost of geological and geophysical capital expenditures and costs on exploratory plays. (3) Includes equipping and facilities capital expenditures. STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS AND CHANGES THEREIN The standardized measure of discounted future net cash flows is based on estimates made by GLJ for 2023 and 2022 of net proved reserves. Future cash inflows are computed based on constant prices and cost assumptions from annual future production of proved oil and natural gas reserves. Future development and production costs are based on constant price assumptions and assume the continuation of existing economic conditions. Constant prices are calculated as the unweighted arithmetic average of the first day of the month price for each month for the prior 12-month calendar period. Income taxes are calculated by applying statutory income tax rates in effect at the end of the fiscal period. The standardized measure of discounted future net cash flows is computed using a 10 percent discount factor. Obsidian Energy cautions users of this information that the discounted future net cash flows relating to proved oil and natural gas reserves are neither an indication of the fair market value of our oil and natural gas properties, nor of the future net cash flows expected to be generated from such properties. The discounted future cash flows do not include the fair market value of exploratory properties and probable or possible oil and natural gas reserves, nor is consideration given to the effect of anticipated future changes in oil and natural gas prices, development, asset retirement and production costs and possible changes to tax and royalty regulations. The prescribed discount rate of 10 percent is arbitrary and may not reflect applicable future interest rates. STANDARD MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS For the years ended December 31, ($CAD millions) 2023 2022 Future cash inflows $ 8,324 $ 10,679 Future production costs ( 3,549 ) ( 4,150 ) Future development/ abandonment costs ( 1,461 ) ( 1,379 ) Undiscounted pre-tax cash flows 3,314 5,149 Income taxes ( 272 ) ( 577 ) Future net cash flows 3,042 4,573 Less 10% annual discount factor ( 1,187 ) ( 1,819 ) Standardized measure of discounted future net cash flows $ 1,855 $ 2,754 STANDARD MEASURE OF DISCOUNTED FUTURE NET CASH FLOW For the years ended December 31, ($CAD millions) 2023 2022 Standardized measure of discounted future net cash flows at beginning of year $ 2,754 $ 1,430 Oil and gas sales during period net of production costs and royalties (1) ( 417 ) ( 564 ) Changes due to prices and royalties (2) ( 1,009 ) 1,296 Actual development costs during the period (3) 291 314 Changes in future development costs (4) ( 74 ) ( 81 ) Changes resulting from extensions, infills and improved recovery (5) 127 601 Changes resulting from discoveries (5) - - Changes resulting from acquisitions of reserves (5) - - Changes resulting from dispositions of reserves (5) - - Accretion of discount (6) 249 122 Net change in income tax (7) 123 ( 200 ) Changes resulting from other changes and technical reserves revisions plus effects on timing (5) 101 ( 185 ) All other changes (8) ( 290 ) 20 Standardized measure of discounted future net cash flows at end of year $ 1,855 $ 2,754 (1) Company actual before income taxes, excluding general and administrative expenses. (2) The impact of changes in prices and other economic factors on future net revenue. (3) Actual capital expenditures relating to the exploration, development and production of oil and gas reserves. (4) The change in forecast development costs. (5) End of period net present value of the related reserves. (6) Estimated as 10 percent of the beginning of period net present value and the period forecast before tax cashflow net present value. (7) The difference between forecast income taxes at beginning of period and the actual taxes for the period plus forecast income taxes at the end of period. (8) Includes changes due to revised production profiles, development timing, operating costs, royalty rates and actual prices received versus forecast, etc. |
Material accounting policies (P
Material accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Critical accounting judgments and key estimates and other accounting estimates | a) Critical accounting judgments and key estimates and other accounting estimates The preparation of the consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the recorded amounts of assets and liabilities, disclosure of any contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the period. These and other estimates are subject to measurement uncertainty and the effect on the consolidated financial statements of changes in these estimates could be material. Estimates are more difficult to determine, and the range of potential outcomes can be wider, in periods of higher volatility and uncertainty. The impacts of events such as geopolitical issues and their impact on energy markets, increased interest and inflation rates, and a constrained supply chain market have created a higher level of volatility and uncertainty. Management has, to the extent reasonable, incorporated known facts and circumstances into the estimates made, however, actual results could differ from those estimates and those differences could be material. Management also makes judgments while applying accounting policies that could affect amounts recorded in its consolidated financial statements. Significant judgments include the identification of cash generating units (“CGUs”) for impairment testing purposes and determining whether a CGU has an impairment or impairment reversal indicator. Additionally, management has performed an assessment of the Company’s ability to comply with liquidity requirements for the 12-month period ending December 31, 2024. This assessment includes judgments relating to future debt arrangements and production volumes, forward commodity pricing, future costs including capital, operating and general and administrative, forward foreign exchange rates, interest rates, and income taxes, all of which are subject to measurement uncertainty. The following are the estimates that management has made in applying the Company’s material accounting policies that have a material effect on the amounts recognized in the consolidated financial statements. i) Reserve and resource estimates Commercial petroleum reserves are determined based on estimates of petroleum-in-place, recovery factors, forecasted production volumes and future oil and natural gas prices and forecasted costs, including operating, royalty and capital expenditures. Obsidian Energy engages an independent qualified reserve evaluator to evaluate all of the Company’s oil and natural gas reserves at each year-end. Reserve adjustments are made annually based on actual oil and natural gas volumes produced, the results from capital programs, revisions to previous estimates, new discoveries and acquisitions and dispositions made during the year and the effect of changes in forecast future oil and natural gas prices. There are a number of estimates and assumptions that affect the process of evaluating reserves. Proved reserves are the estimated quantities of oil, natural gas and natural gas liquids determined to be economically recoverable under existing economic and operating conditions with a high degree of certainty (at least 90 percent) those quantities will be exceeded. Proved plus probable reserves are the estimated quantities of oil, natural gas and natural gas liquids determined to be economically recoverable under existing economic and operating conditions with a 50 percent degree of certainty those quantities will be exceeded. Obsidian Energy reports production and reserve quantities in accordance with Canadian practices and specifically in accordance with “Standards of Disclosure for Oil and Gas Activities” (“NI 51-101”). The estimate of proved plus probable reserves is an essential part of the depletion calculation and the indicators of impairment or impairment reversal assessment and if necessary, the related impairment test and hence the recorded amount of oil and gas assets. The estimate of the cash flows associated with proved and probable reserves are a key component in the indicators of impairment or impairment reversal assessment and if necessary, the related impairment test for property, plant and equipment and the measurement of the deferred income tax asset. Obsidian Energy cautions users of this information that the process of estimating oil and natural gas reserves is subject to a level of uncertainty. The reserves are based on current and forecast economic and operating conditions; therefore, changes can be made to future assessments as a result of a number of factors, which can include commodity prices, new technology, changing economic conditions, future reservoir performance and forecast development activity. ii) Recoverability of asset carrying values Obsidian Energy assesses our property, plant and equipment (“PP&E”) for impairment by comparing the carrying amount to the recoverable amount of the underlying assets. The determination of the recoverable amount involves estimating the higher of an asset’s fair value less costs of disposal or its value-in-use, which are based on discounted future cash flows using an applicable discount rate. Future cash flows are calculated based on estimates of future proved plus probable reserves using forecasted commodity prices and are discounted using a rate that incorporates management’s current assessment of market conditions. iii) Decommissioning liability Obsidian Energy recognizes a provision for future abandonment activities in the consolidated financial statements at the net present value of the estimated future expenditures required to settle the estimated obligation at the balance sheet date. The measurement of the decommissioning liability involves the use of estimates and assumptions including the discount rate, the amount and expected timing of future abandonment costs and the inflation rate related thereto. The estimates were made by management and external consultants considering current costs, technology and enacted legislation. iv) Fair value of risk management contracts Obsidian Energy records risk management contracts at fair value with changes in fair value recognized in income. The fair values are determined using external counterparty information which is compared to observable market data. v) Taxation The calculation of deferred income taxes is based on a number of assumptions including the estimated future cash flows from proved and probable reserves, estimating the future periods in which temporary differences and other tax credits will reverse and the general assumption that substantively enacted future tax rates at the balance sheet date will be in effect when differences reverse. |
Revenue | b) Revenue Obsidian Energy generally recognizes oil, natural gas and natural gas liquids (“NGLs”) revenue when title passes from Obsidian Energy to the purchaser or, in the case of services, as contracted services are performed. Production revenues are determined pursuant to the terms outlined in contractual agreements and are based on fixed or variable price components. The transaction price for oil, natural gas and NGLs is based on the commodity price in the month of production, adjusted for various factors including product quality and location. Commodity prices are based on monthly or daily market indices. Performance obligations in the contract are fulfilled on the last day of the month with payment typically on the 25 th day of the following month. All of the Company’s significant revenue streams are located in Alberta. Obsidian Energy may purchase commodity products from third parties to utilize in blending activities and then subsequently sell these products to our customers. These transactions are presented as separate revenue and expense items in the Consolidated Statements of Income. The Company enters into agreements for other services such as processing third party production, road usage, and other miscellaneous services. Revenue from these arrangements are recorded as processing fees or other income when control passes to the customer, which is generally when the service is provided. |
Joint arrangements | c) Joint arrangements The consolidated financial statements include Obsidian Energy’s proportionate interest of jointly controlled assets and liabilities and our proportionate interest of the revenue, royalties and operating expenses. A significant portion of Obsidian Energy’s development and exploration activities are conducted jointly with others and involve joint operations. Under such arrangements, Obsidian Energy has the exclusive rights to our proportionate interest in the assets and the economic benefits generated from our share of the assets. Income from the sale or use of Obsidian Energy’s interest in joint operations and our share of expenses is recognized when it is probable that the economic benefits associated with the transactions will flow to/from Obsidian Energy and the amounts can be reliably measured. |
PP&E | d) PP&E i) Measurement and recognition Oil and gas properties are included in PP&E at cost, less accumulated depletion and depreciation and any impairment losses or reversals. The cost of PP&E includes costs incurred initially to acquire or construct the item and betterment costs. Capital expenditures are recognized as PP&E when it is probable that future economic benefits associated with the investment will flow to Obsidian Energy and the cost can be reliably measured. PP&E includes capital expenditures incurred in the development phases, acquisition of PP&E and additions to the decommissioning liability. ii) Depletion and Depreciation Except for components with a useful life shorter than the reserve life of the associated property, resource properties are depleted using the unit-of-production method based on production volumes before royalties in relation to total proved plus probable reserves. Natural gas volumes are converted to equivalent oil volumes based upon the relative energy content of six thousand cubic feet of natural gas to one barrel of oil. In determining our depletion base, Obsidian Energy includes estimated future costs to develop proved plus probable reserves. Changes to reserve estimates are included in the depletion calculation prospectively. Components of PP&E that are not depleted using the unit-of-production method are depreciated on a straight-line basis over their useful life. Turnarounds of major facilities have an estimated useful life of three to five years and corporate assets have an estimated useful life of 10 years . iii) Major maintenance and repairs Ongoing costs to maintain properties are generally expensed as incurred. These costs include the cost of labour, consumables and small parts. The costs of material replacement parts, turnarounds and major inspections are capitalized provided it is probable that future economic benefits in excess of cost will be realized and such benefits are expected to extend beyond the current operating period. The carrying amount of a replaced part is derecognized in accordance with Obsidian Energy’s derecognition policies. iv) Impairment of oil and natural gas properties Obsidian Energy reviews oil and gas properties for circumstances that indicate that CGUs may be impaired or that prior impairments can be reversed at the end of each reporting period. These indicators can be internal such as changes in estimated proved plus probable reserves in the CGU or external such as market conditions. If an indication of impairment or impairment reversal exists, Obsidian Energy completes an impairment test, which compares the estimated recoverable amount to the carrying value. The estimated recoverable amount is defined under IAS 36 (“Impairment of Assets”) as the higher of an asset’s or CGU’s fair value less costs of disposal and its value-in-use. Where the recoverable amount is less than the carrying amount, the CGU is considered to be impaired. Impairment losses identified for a CGU are allocated on a pro rata basis to the asset categories within the CGU. The impairment loss is recognized as an expense in income. Value-in-use is computed as the present value of future cash flows expected to be derived from production. Present values are calculated using an after-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Under the fair value less cost of disposal method the recoverable amount is determined using various factors, which can include external factors such as observable market conditions and comparable transactions and internal factors such as discounted cash flows related to reserve and resource studies and future development plans. The fair value less costs of disposal values used to determine the recoverable amounts of the Company’s CGUs are classified as Level 3 fair value measures as certain key assumptions are not based on observable market data but rather management’s best estimates. Impairment losses related to PP&E can be reversed in future periods if the estimated recoverable amount of the asset exceeds the carrying value. The impairment recovery is limited to a maximum of the estimated depleted historical cost if the impairment had not been recognized. The reversal of an impairment loss is recognized in depletion, depreciation and impairment. |
Share-based payments | e) Share-based payments The fair value of restricted share units granted under the Restricted and Performance Share Unit Plan (“RPSU” plan) follows the equity method and recognizes compensation expense with a corresponding increase to other reserves in shareholders’ equity over the term of the units based on a graded vesting schedule. Obsidian Energy measures the fair value of units granted under this plan at the grant date using the share price from the Toronto Stock Exchange (“TSX”). The fair value is based on market prices and considers the terms and conditions of the units granted. The fair value of options granted under the Stock Option Plan (the “Option Plan”) is recognized as compensation expense with a corresponding increase to other reserves in shareholders’ equity over the term of the options based on a graded vesting schedule. Obsidian Energy measures the fair value of options granted under these plans at the grant date using the Black-Scholes option-pricing model. The fair value is based on market prices and considers the terms and conditions of the share options granted. The fair value of units granted under the Deferred Share Unit Plan (“DSU”), awards granted under the Non-Treasury Incentive Award Plan (“NTIP”) and performance share units ("PSUs") granted under the RPSU plan follow the liability method and are based on a fair value calculation on each reporting date using the units, awards and PSUs outstanding and Obsidian Energy’s share price from the TSX on each balance sheet date. The fair value of the units, awards and PSUs is expensed over the vesting period based on a graded vesting schedule. Subsequent increases and decreases in the underlying share price result in increases and decreases, respectively, to the accrued obligation until the related instruments are settled. |
Decommissioning liability | f) Decommissioning liability The decommissioning liability is the present value of Obsidian Energy’s future costs of obligations for property, facility and pipeline abandonment and site restoration. The liability is recognized on the balance sheet with a corresponding increase to the carrying amount of the related asset. The recorded liability increases over time to its future amount through accretion charges to income. Revisions to the estimated amount or timing of the obligations are reflected prospectively as increases or decreases to the recorded liability and the related asset. Actual decommissioning expenditures, up to the recorded amount of the liability at the time, are charged to the liability as the costs are incurred. Amounts capitalized to the related assets are depleted to income consistent with the depletion or depreciation of the underlying asset. |
Taxation | g) Taxation Income taxes are based on taxable income in a taxation year. Taxable income normally differs from income reported in the Consolidated Statements of Income (Loss) as it excludes items of income or expense that are taxable or deductible in other years or are not taxable or deductible for income tax purposes. Obsidian Energy uses the liability method of accounting for deferred income taxes. Temporary differences are calculated assuming that the financial assets and liabilities will be settled at their carrying amount. Deferred income taxes are computed on temporary differences using substantively enacted income tax rates expected to apply when deferred income tax assets and liabilities are realized or settled. A deferred income tax asset is recognized to the extent that it is probable that future taxable income will be available against which the deductible temporary differences can be utilized. Deferred income tax assets are reviewed at each reporting date and are not recognized until such time that it is probable that the related tax benefit will be realized. |
Financial instruments | h) Financial instruments Classification and Measurement of Financial Instruments The classification of financial assets is determined by their context in Obsidian Energy’s operations and by the characteristics of the financial asset’s contractual cash flows. Financial assets and financial liabilities are measured at fair value on initial recognition, which is typically the transaction price unless a financial instrument contains a significant financing component. Subsequent measurement is dependent on the financial instrument’s classification, as described below: • Cash and cash equivalents (which includes cash and bank overdrafts), accounts receivable, accounts payable and accrued liabilities, lease liabilities and long-term debt are measured at amortized cost. • Risk management contracts, all of which are derivatives, are measured initially at fair value through profit or loss and are subsequently measured at fair value with changes in fair value immediately charged to earnings in the Consolidated Statements of Income (Loss). Financial assets and liabilities are offset and the net amount is reported on the balance sheet when there is a legally enforceable right to offset the recognized amounts, and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously. Impairment of Financial Assets Financial assets are assessed using an expected credit loss (“ECL”) model. The ECL model applies to financial assets measured at amortized cost, a lease receivable, a contract asset or a loan commitment and a financial guarantee. |
Embedded derivatives | i) Embedded derivatives An embedded derivative is a component of a contract that affects the terms of another factor. These “hybrid” contracts are considered to consist of a “host” contract plus an embedded derivative. The embedded derivative is separated from the host contract and accounted for as a derivative if the following conditions are met: • The economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics and risks of the host contract; • The embedded item, itself, meets the definition of a derivative; and • The hybrid contract is not measured at fair value or designated as held for trading. |
Classification of debt or equity | j) Classification of debt or equity Obsidian Energy classifies financial liabilities and equity instruments in accordance with the substance of the contractual arrangement and the definitions of a financial liability or an equity instrument. Obsidian Energy’s debt instruments currently have requirements to deliver cash at the end of the term thus are classified as liabilities. |
Government Grants | k) Government Grants Obsidian Energy recognizes government grants as they are received or if there is reasonable assurance that the Company is in compliance with all associated conditions. The grant is recognized within the Consolidated Statements of Income (Loss) in the period in which the income is earned or the related expenditures are incurred. If the grant relates to an asset, it is recognized as a reduction to the carrying value of the asset and amortized into income over the expected useful life of the asset through lower depletion and depreciation. |
Share capital | l) Share capital Under the Company's normal course issuer bid ("NCIB"), common shares repurchased and cancelled are accounted for as a reduction in Shareholders' capital based on the total consideration paid. The total consideration paid includes any commissions or fees paid as part of the transaction. |
New Accounting Standards | m) New Accounting Standards Various amendments to existing standards and new accounting requirements have been released that are effective as of January 1, 2024. The Company does not anticipate the new requirements to have a material impact on the financial statements. |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Disclosure of Property Plant and Equipment | Oil and Gas assets/ Facilities, Corporate assets Cost Oil and gas assets/Facilities Corporate assets Total Balance at January 1, 2022 $ 10,352.2 $ 176.5 $ 10,528.7 Capital expenditures 313.9 0.9 314.8 Property acquisitions 4.6 - 4.6 Change in decommissioning liability (1) 83.6 - 83.6 Balance at December 31, 2022 10,754.3 177.4 10,931.7 Capital expenditures 290.7 1.8 292.5 Property acquisitions 0.6 - 0.6 Change in decommissioning liability (1) ( 1.0 ) - ( 1.0 ) Balance at December 31, 2023 $ 11,044.6 $ 179.2 $ 11,223.8 (1) Includes additions from drilling activity, facility capital spending, disposals from net property dispositions and changes in estimates as outlined in Note 7 . Accumulated depletion, depreciation and impairment Oil and gas assets/Facilities Corporate assets Total Balance at January 1, 2022 $ 9,018.1 $ 176.5 $ 9,194.6 Depletion and depreciation 170.3 0.1 170.4 Impairments 36.4 - 36.4 Impairment reversal ( 322.0 ) - ( 322.0 ) Balance at December 31, 2022 8,902.8 176.6 9,079.4 Depletion and depreciation 204.8 0.1 204.9 Impairments 2.7 - 2.7 Balance at December 31, 2023 $ 9,110.3 $ 176.7 $ 9,287.0 Net book value As at December 31 2023 2022 Total $ 1,936.8 $ 1,852.3 |
Summary of Right of Use Assets | The following table includes a break-down of the categories for right-of-use assets. Cost Transportation Vehicle Office Surface Total Balance, January 1, 2022 $ 16.3 $ 6.4 $ - $ 2.1 $ 24.8 Additions - 1.0 - - 1.0 Balance, December 31, 2022 16.3 7.4 - 2.1 25.8 Additions - 2.6 2.7 - 5.3 Balance, December 31, 2023 $ 16.3 $ 10.0 $ 2.7 $ 2.1 $ 31.1 Accumulated depletion, depreciation and impairment Transportation Vehicle Office Surface Total Balance, January 1, 2022 $ 12.6 $ 4.0 $ - $ 0.2 $ 16.8 Depreciation 2.2 1.4 - 0.1 3.7 Balance, December 31, 2022 14.8 5.4 - 0.3 20.5 Depreciation 1.5 1.9 - - 3.4 Balance, December 31, 2023 $ 16.3 $ 7.3 $ - $ 0.3 $ 23.9 Net book value As at December 31 2023 2022 Total $ 7.2 $ 5.3 |
Summary of Property Plant Equipment And Right Of Use Assets | Total PP&E including Oil and Gas assets, Facilities, Corporate assets and Right-of-use assets is as follows: As at December 31 PP&E 2023 2022 Oil and Gas assets/Facilities, Corporate assets $ 1,936.8 $ 1,852.3 Right-of-use assets 7.2 5.3 Total $ 1,944.0 $ 1,857.6 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Statement [Line Items] | |
Schedule of Long-term Debt | As at December 31 2023 2022 Syndicated credit facility $ 107.5 $ 105.0 Senior unsecured notes 11.95 % $ 117.4 million, maturing July 27, 2027 117.4 127.6 Total 224.9 232.6 Unamortized discount of senior unsecured notes ( 1.6 ) ( 2.3 ) Deferred financing costs ( 3.3 ) ( 5.0 ) Total long-term debt $ 220.0 $ 225.3 Current portion $ 2.0 $ - Non-current portion $ 218.0 $ 225.3 |
Detailed Information About In Financing Expense | Financing expense consists of the following: Year ended December 31 2023 2022 Interest $ 27.2 $ 29.1 Accretion on decommissioning liability 17.5 11.6 Accretion on office lease provision 0.9 1.4 Accretion on other non-current liability - 0.3 Accretion on discount of senior unsecured notes 0.5 0.2 Accretion on lease liabilities 0.4 0.6 Loss on repurchased senior unsecured notes 0.5 - Deferred financing costs 2.3 2.5 Debt modification - ( 0.8 ) Financing $ 49.3 $ 44.9 |
Lease Liabilities (Tables)
Lease Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Lease liabilities [abstract] | |
Detailed Information About In Lease Liabilities Included In Consolidated Balance Sheet | Total lease liabilities included in the Consolidated Balance Sheets are as follows: Year ended December 31 2023 2022 Balance, beginning of year $ 6.0 $ 8.7 Additions 5.3 1.0 Accretion charges 0.4 0.6 Lease payments ( 3.7 ) ( 4.3 ) Balance, end of year $ 8.0 $ 6.0 Current portion $ 1.9 $ 3.2 Non-current portion $ 6.1 $ 2.8 |
Detailed information About In Maturity Lease Payments | The following table sets out a maturity analysis of lease payments, disclosing the undiscounted balance after December 31, 2023. The office lease reflects a new office lease at the same premises that will become effective in 2025. 2024 2025 2026 2027 2028 Thereafter Total Vehicle $ 1.8 $ 1.3 $ 0.4 $ - $ - $ - $ 3.5 Office - 0.6 1.1 1.2 0.6 - 3.5 Surface 0.1 0.1 0.1 0.1 0.1 4.8 5.3 Total $ 1.9 $ 2.0 $ 1.6 $ 1.3 $ 0.7 $ 4.8 $ 12.3 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Summary of Provisions | As at December 31 2023 2022 Decommissioning liability $ 172.6 $ 182.3 Office lease provision (existing) 9.4 17.5 Total $ 182.0 $ 199.8 Current portion $ 32.1 $ 34.1 Non-current portion $ 149.9 $ 165.7 |
Summary of Changes to Decommissioning Liability | Changes to the decommissioning liability were as follows: Year ended December 31 2023 2022 Balance, beginning of year $ 182.3 $ 121.6 Net liabilities added (1) 1.3 0.3 Increase (decrease) due to changes in estimates ( 2.3 ) 83.3 Liabilities settled ( 26.6 ) ( 18.8 ) Government decommissioning assistance 0.4 ( 15.7 ) Accretion charges 17.5 11.6 Balance, end of year $ 172.6 $ 182.3 Current portion $ 23.4 $ 25.4 Non-current portion $ 149.2 $ 156.9 (1) Includes additions from drilling activity, facility capital spending and disposals related to net property dispositions. |
Summary of Changes to Office Lease Provision | Changes to the office lease provision were as follows: Year ended December 31 2023 2022 Balance, beginning of year $ 17.5 $ 25.6 Decrease due to changes in estimates - ( 0.3 ) Settlements ( 9.0 ) ( 9.2 ) Accretion charges 0.9 1.4 Balance, end of year $ 9.4 $ 17.5 Current portion $ 8.7 $ 8.7 Non-current portion $ 0.7 $ 8.8 |
Risk management (Tables)
Risk management (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Summary of Reconcilation of Change in Fair Value of Financial Instruments Outstanding | The following table reconciles the changes in the fair value of financial instruments outstanding: Year ended December 31 Risk management asset (liability) 2023 2022 Balance, beginning of year $ 6.2 $ ( 2.4 ) Unrealized gain (loss) on financial instruments: Oil - 4.0 Natural gas 6.1 4.6 Electricity ( 0.5 ) - Total fair value, end of year $ 11.8 $ 6.2 Current asset portion $ 11.3 $ 6.2 Current liability portion ( 0.5 ) - Non-current asset portion 1.0 - Non-current liability portion $ - $ - |
Schedule of Financial Instruments Outstanding | Obsidian Energy had the following financial instruments outstanding as at December 31, 2023. 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. Notional Remaining Price Fair value AECO AECO Swap 32,749 mcf/d January - March 2024 $ 3.35 /mcf $ 4.1 AECO Swap 43,365 mcf/d April 2024 - October 2024 $ 2.52 /mcf 6.4 AECO Swap 14,929 mcf/d November 2024 - March 2025 $ 3.74 /mcf 1.4 AECO Collar 4,976 mcf/d November 2024 - March 2025 $ 3.43 /mcf - $ 4.11 /mcf 0.4 Electricity Power Swap 144 MWh/d January - December 2024 $ 92.83 /MWh ( 0.5 ) Total $ 11.8 |
Disclosure Details Of Financial Contracts One | Subsequent to December 31, 2023, the Company entered into the following additional financial hedges: Notional Remaining Price Oil WCS Differential 750 bbl/d April 2024 - June 2024 ($ 18.80 )/bbl |
Components of Risk Management on Consolidated Statements of Income | The components of risk management on the Consolidated Statements of Income are as follows: Year ended December 31 2023 2022 Realized Settlement of oil contracts gain (loss) $ 2.2 $ ( 25.5 ) Settlement of natural gas contracts gain (loss) 15.5 ( 6.4 ) Total realized risk management gain (loss) $ 17.7 $ ( 31.9 ) Unrealized Oil contracts gain $ - $ 4.0 Natural gas contracts gain 6.1 4.6 Total unrealized risk management gain 6.1 8.6 Risk management gain (loss) $ 23.8 $ ( 23.3 ) The components of risk management within Expenses o n the Consolidated Statements of Income are as follows: Year ended December 31 2023 2022 Unrealized Electricity contracts loss $ ( 0.5 ) $ - Total unrealized risk management loss ( 0.5 ) - Risk management loss $ ( 0.5 ) $ - |
Disclosure of Detailed Information about Accounts Receivable | A s at December 31, the following accounts receivable amounts were outstanding: Current 30-90 days 90+ days Total 2023 $ 63.0 $ 5.7 $ 1.3 $ 70.0 2022 $ 76.5 $ 5.1 $ 1.0 $ 82.6 |
Summary of Estimated Future Obligations for Non-Derivative Financial Liabilities | The following table outlines estimated future obligations for non-derivative financial liabilities as at December 31, 2023: Long-term debt Accounts payable & accrued liabilities Share-based compensation accrual Total 2024 $ - $ 163.9 $ 29.6 $ 193.5 2025 107.5 - 1.5 109.0 2026 - - 1.1 1.1 2027 117.4 - - 117.4 2028 - - - - Thereafter $ - $ - $ - $ - |
Revenue and Other Income (Table
Revenue and Other Income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Disclosure of Significant Revenue | The Company’s significant revenue streams consist of the following: Year ended December 31 2023 2022 Oil $ 596.0 $ 697.9 NGLs 51.2 63.1 Natural gas 73.4 136.3 Production revenues 720.6 897.3 Processing fees 14.3 8.4 Oil and natural gas sales 734.9 905.7 Other income 7.2 6.9 Oil and natural gas sales and other income $ 742.1 $ 912.6 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Summary of Provision for Income Taxes Reflects Effective Tax Rate | The provision for income taxes reflects an effective tax rate that differs from the combined federal and provincial statutory tax rate as follows: Year ended December 31 2023 2022 Income before taxes $ 143.6 $ 563.7 Combined statutory tax rate (1) 23.0 % 23.0 % Computed income tax expense $ 33.0 $ 129.7 Increase (decrease) resulting from: Share-based compensation 1.8 1.1 Non-taxable foreign exchange loss - 0.2 Recognition of deferred tax asset - ( 378.6 ) Adjustments related to prior years 0.8 ( 0.4 ) Other - 1.6 Deferred income tax expense (recovery) $ 35.6 $ ( 246.4 ) (1) The tax rate represents the combined federal and provincial statutory tax rates for the Company and our subsidiaries for the years ended December 31, 2023 and December 31, 2022 . |
Summary of Net Deferred Income Tax Asset | The net deferred income tax asset is comprised of the following: Balance Provision (Recovery) Balance Deferred tax liabilities (assets) PP&E $ 249.5 $ ( 1.6 ) $ 247.9 Leases ( 5.5 ) 1.5 ( 4.0 ) Risk Management 1.4 1.3 2.7 Decommissioning liability ( 41.9 ) 2.2 ( 39.7 ) Share-based compensation ( 7.3 ) ( 0.1 ) ( 7.4 ) Non-capital losses ( 442.6 ) 32.3 ( 410.3 ) Net deferred tax liability (asset) $ ( 246.4 ) $ 35.6 $ ( 210.8 ) Balance Provision (Recovery) Balance Deferred tax liabilities (assets) PP&E $ 153.5 $ 96.0 $ 249.5 Leases ( 7.9 ) 2.4 ( 5.5 ) Risk Management ( 0.5 ) 1.9 1.4 Decommissioning liability ( 27.9 ) ( 14.0 ) ( 41.9 ) Share-based compensation ( 4.0 ) ( 3.3 ) ( 7.3 ) Non-capital losses ( 113.2 ) ( 329.4 ) ( 442.6 ) Net deferred tax liability (asset) $ - $ ( 246.4 ) $ ( 246.4 ) |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Summary of Issued Capital | b) Issued Shareholders’ capital Common Shares Amount Balance, December 31, 2021 80,753,516 $ 2,213.8 Issued pursuant to equity compensation plans (1) 1,688,694 8.1 Balance, December 31, 2022 82,442,210 2,221.9 Issued pursuant to equity compensation plans (1) 229,963 0.6 Repurchase of common shares for cancellation ( 5,083,635 ) ( 47.4 ) Balance, December 31, 2023 77,588,538 $ 2,175.1 (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. |
Summary of Other Reserves | Year ended December 31 Other Reserves 2023 2022 Balance, beginning of year $ 101.2 $ 103.2 Share-based compensation expense 8.0 4.7 Net benefit on options exercised (1) ( 5.1 ) ( 6.7 ) Balance, end of year $ 104.1 $ 101.2 (1) Upon exercise of options, the net benefit is recorded as a reduction of other reserves and an increase to shareholders’ capital. |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Summary of Stock Option Activity and Related Information | Year ended December 31 2023 2022 Options Number of Weighted Average Number of Weighted Average Outstanding, beginning of year 2,274,672 $ 2.30 3,021,672 $ 1.56 Granted 260,780 10.32 156,400 10.64 Exercised (1) ( 229,963 ) 1.42 ( 903,400 ) 1.27 Outstanding, end of year 2,305,489 $ 3.30 2,274,672 $ 2.30 Exercisable, end of year 1,064,115 $ 2.02 749,498 $ 1.69 (1) Exercised options in 2023 and 2022 were settled in shares. |
Summary of Fair Value and Weighted Average Assumptions of the Options Granted | Year ended December 31 2023 2022 Average fair value of Options granted (per Option) $ 10.32 $ 6.56 Expected volatility 78.8 % 87.0 % Expected life of Options (years) 3.7 3.9 Expected forfeiture rate 0.2 % 0.3 % |
Summary of Share-Based Compensation | Share-based compensation consisted of the following: Year ended December 31 2023 2022 DSUs $ 0.5 $ 9.5 PSUs 6.3 8.0 NTIP 1.4 5.9 Cash settled share-based incentive plans $ 8.2 $ 23.4 RSUs $ 6.7 $ 3.4 Options 1.3 1.3 Equity settled share-based incentive plans 8.0 4.7 Share-based compensation $ 16.2 $ 28.1 |
Restricted share unit plan [member] | |
Statement [LineItems] | |
Summary of Restricted and Performance Share Unit plan ("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 Toronto Stock Exchange ("TSX"). Consideration can be in the form of cash or shares purchased on the open market or issued from treasury. Year ended December 31 RSUs (number of shares equivalent) 2023 2022 Outstanding, beginning of year 874,130 1,167,351 Granted 991,860 537,225 Vested (1) ( 541,357 ) ( 784,514 ) Forfeited ( 34,591 ) ( 45,932 ) Outstanding, end of year 1,290,042 874,130 (1) Vested RSUs in 2023 were settled in cash and in 2022 were settled in shares. |
Summary of Weighted Average Assumptions of RPSU Plan Units Under Equity Method | The fair value and weighted average assumptions of the RSUs granted during the years were as follows: Year ended December 31 2023 2022 Average fair value of RSUs granted (per RSU) $ 9.86 $ 10.59 Expected life of RSUs (years) 2.6 2.9 Expected forfeiture rate 0.1 % 0.5 % |
PSU Plan [member] | |
Statement [LineItems] | |
Summary of Restricted and Performance Share Unit plan ("RPSU plan") | Year ended December 31 PSUs (number of shares equivalent) 2023 2022 Outstanding, beginning of year 949,040 1,138,465 Granted 239,360 124,610 Vested (1) ( 291,710 ) ( 181,018 ) Forfeited - ( 133,017 ) Outstanding, end of year 896,690 949,040 (1) Vested PSUs in 2023 were settled in cash and in 2022 were settled in shares. |
Summary of Share Based Compensation Recognized Liabilities | As at December 31 PSU liability 2023 2022 Current $ 9.8 $ 5.2 Non-current 2.6 6.1 Total $ 12.4 $ 11.3 |
Non-Treasury Incentive Awards Plan [member] | |
Statement [LineItems] | |
Summary of Restricted and Performance Share Unit plan ("RPSU plan") | Year ended December 31 NTIP Restricted Awards 2023 2022 Outstanding, beginning of year 689,228 1,093,800 Granted - 3,400 Vested (1) ( 344,074 ) ( 363,871 ) Forfeited ( 16,160 ) ( 44,101 ) Outstanding, end of year 328,994 689,228 (1) Vested NTIPs in 2023 and 2022 were settled in cash. |
Summary of Share Based Compensation Recognized Liabilities | As at December 31 NTIP liability 2023 2022 Current $ 2.7 $ 2.6 Non-current - 1.8 Total $ 2.7 $ 4.4 |
Deferred Share Units Plan | |
Statement [LineItems] | |
Summary of Restricted and Performance Share Unit plan ("RPSU plan") | Year ended December 31 Deferred Share Units 2023 2022 Outstanding, beginning of year 1,811,245 2,018,499 Granted 82,035 42,509 Exercised - ( 249,763 ) Outstanding, end of year 1,893,280 1,811,245 |
Summary of Share Based Compensation Recognized Liabilities | As at December 31 DSU Liability 2023 2022 Current $ 17.1 $ 16.6 Non-current - - Total $ 17.1 $ 16.6 |
Per share amounts (Tables)
Per share amounts (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Disclosure of Detailed Information about Net Loss Basic and Diluted | Year ended December 31 2023 2022 Net income $ 108.0 $ 810.1 |
Disclosure of Detailed Information about Weighted Average Number of Shares Per Share | The weighted average number of shares used to calculate per share amounts was as follows: Year ended December 31 Average shares outstanding (millions) 2023 2022 Basic 80.9 82.0 Dilutive impact (1) 3.2 2.4 Diluted 84.1 84.4 (1) Includes impact of stock options and RSUs. |
Changes in non-cash working c_2
Changes in non-cash working capital increase (decrease) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Summary of Changes in Non-cash Working Capital (Increase) Decrease | Year ended December 31 2023 2022 Accounts receivable $ 12.6 $ ( 13.7 ) Prepaid expenses and other ( 2.1 ) ( 1.6 ) Accounts payable, accrued liabilities and (1) 2.6 78.7 $ 13.1 $ 63.4 Operating activities 13.6 34.8 Investing activities ( 0.5 ) 28.6 $ 13.1 $ 63.4 Interest paid in cash $ 27.5 $ 29.2 Income taxes paid (recovered) in cash $ - $ - (1) Includes share-based compensation plans. |
Capital management (Tables)
Capital management (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Summary of Financial Covenants Under Lending Agreements | As at December 31 2023 2022 Components of capital Shareholders' equity $ 1,643.8 $ 1,579.7 Long-term debt $ 224.9 $ 232.6 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Summary of Certain Payments Over the Next Five Years | Obsidian Energy is committed to certain payments over the next five calendar years and thereafter as follows: 2024 2025 2026 2027 2028 Thereafter Total Long-term debt (1) $ - $ 107.5 $ - $ 117.4 $ - $ - $ 224.9 Transportation 9.5 7.3 6.1 4.6 3.7 7.8 39.0 Interest obligations 23.3 17.9 14.0 14.0 - - 69.2 Office lease (existing) 10.0 0.8 - - - - 10.8 Lease liability 1.9 2.0 1.6 1.3 0.7 4.8 12.3 Decommissioning liability 23.4 21.8 20.2 18.7 17.4 71.0 172.5 Total $ 68.1 $ 157.3 $ 41.9 $ 156.0 $ 21.8 $ 83.6 $ 528.7 (1) The 2025 figure includes our syndicated credit facility which has a term-out date of May 2025 . The 2027 figure includes our senior unsecured notes due in July 2027 . Refer to Note 5 for further details. Historically, the Company has successfully renewed its syndicated credit facility. |
Related-party transactions (Tab
Related-party transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Summary of Compensation of key Management Personnel | The remuneration of the directors and key management personnel of Obsidian Energy during the year is below. Year ended December 31 2023 2022 Salary and employee benefits $ 3.2 $ 4.2 Termination benefits - 0.9 Share-based payments (1) 9.0 18.1 $ 12.2 $ 23.2 Includes changes in the fair value of PSUs, DSUs and non-cash charges related to the Option Plan and RSUs outstanding under the RPSU plan (equity method) for key management personnel. |
Supplementary Oil and Gas Inf_2
Supplementary Oil and Gas Information - (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Statement [LineItems] | |
Net Proved Oil and Natural Gas Reserves | YEAR ENDED DECEMBER 31, 2023 CONSTANT PRICES AND COSTS Light and Medium Oil (mmbbl) Heavy Oil and Bitumen (mmbbl) Natural Gas (bcf) Coal bed methane (bcf) Natural Gas Liquids (mmbbl) Barrels of Oil Equivalent (mmboe) Net Proved Developed and Proved Undeveloped Reserves (1) December 31, 2022 50 9 272 1 10 115 Extensions & Discoveries 2 4 8 - - 7 Improved Recovery & Infill Drilling 1 - 13 - - 4 Technical Revisions 3 1 8 - 2 7 Acquisitions - - 1 - - - Dispositions - - - - - - Production ( 5 ) ( 2 ) ( 24 ) - ( 1 ) ( 12 ) Change for the year 1 3 5 - 1 6 December 31, 2023 51 12 276 - 11 121 Developed 30 9 166 - 6 73 Undeveloped 21 4 110 - 5 48 Total (2) 51 12 276 - 11 121 (1) Columns may not add due to rounding. (2) Obsidian Energy does not file any estimates of total net proved oil or natural gas reserves with any U.S. federal authority or agency other than the SEC. YEAR ENDED DECEMBER 31, 2022 CONSTANT PRICES AND COSTS Light and Medium Oil (mmbbl) Heavy Oil and Bitumen (mmbbl) Natural Gas (bcf) Coal bed methane (bcf) Natural Gas Liquids (mmbbl) Barrels of Oil Equivalent (mmboe) Net Proved Developed and Proved Undeveloped Reserves (1) December 31, 2021 52 10 220 - 9 108 Extensions & Discoveries 5 1 39 - 1 13 Improved Recovery & Infill Drilling 2 - 5 1 - 3 Technical Revisions ( 4 ) - 31 - 1 2 Acquisitions - - - - - - Dispositions - - - - - - Production ( 4 ) ( 2 ) ( 23 ) - ( 1 ) ( 11 ) Change for the year ( 2 ) ( 1 ) 52 1 1 7 December 31, 2022 50 9 272 1 10 115 Developed 28 7 173 1 6 71 Undeveloped 22 2 99 - 4 44 Total (2) 50 9 272 1 10 115 (1) Columns may not add due to rounding. (2) Obsidian Energy does not file any estimates of total net proved oil or natural gas reserves with any U.S. federal authority or agency other than the SEC. |
Capitalized Costs | CAPITALIZED COSTS As at December 31, ($CAD millions) 2023 2022 Proved oil and gas properties $ 11,044.6 $ 10,754.3 Unproved oil and gas properties - - Total capitalized costs 11,044.6 10,754.3 Accumulated depletion and depreciation ( 9,110.3 ) ( 8,902.8 ) Net capitalized costs $ 1,934.3 $ 1,851.5 |
Costs Incurred | COSTS INCURRED For the years ended December 31, ($CAD millions) 2023 2022 Property acquisition (disposition) costs (1) Proved oil and gas properties – acquisitions $ 0.6 $ 4.6 Proved oil and gas properties – dispositions - - Unproved oil and gas properties 4.7 - Exploration costs (2) - - Development costs (3) 286.0 313.9 Change in decommissioning liability estimate ( 1.0 ) 83.6 Capital expenditures $ 290.3 $ 402.1 (1) Acquisitions are net of disposition of properties. (2) Cost of geological and geophysical capital expenditures and costs on exploratory plays. (3) Includes equipping and facilities capital expenditures. |
Standardized Measure of Discounted Future Net Cash Flows | STANDARD MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS For the years ended December 31, ($CAD millions) 2023 2022 Future cash inflows $ 8,324 $ 10,679 Future production costs ( 3,549 ) ( 4,150 ) Future development/ abandonment costs ( 1,461 ) ( 1,379 ) Undiscounted pre-tax cash flows 3,314 5,149 Income taxes ( 272 ) ( 577 ) Future net cash flows 3,042 4,573 Less 10% annual discount factor ( 1,187 ) ( 1,819 ) Standardized measure of discounted future net cash flows $ 1,855 $ 2,754 |
Standardized Measure of Discounted Future Net Cash Flow Changes | STANDARD MEASURE OF DISCOUNTED FUTURE NET CASH FLOW For the years ended December 31, ($CAD millions) 2023 2022 Standardized measure of discounted future net cash flows at beginning of year $ 2,754 $ 1,430 Oil and gas sales during period net of production costs and royalties (1) ( 417 ) ( 564 ) Changes due to prices and royalties (2) ( 1,009 ) 1,296 Actual development costs during the period (3) 291 314 Changes in future development costs (4) ( 74 ) ( 81 ) Changes resulting from extensions, infills and improved recovery (5) 127 601 Changes resulting from discoveries (5) - - Changes resulting from acquisitions of reserves (5) - - Changes resulting from dispositions of reserves (5) - - Accretion of discount (6) 249 122 Net change in income tax (7) 123 ( 200 ) Changes resulting from other changes and technical reserves revisions plus effects on timing (5) 101 ( 185 ) All other changes (8) ( 290 ) 20 Standardized measure of discounted future net cash flows at end of year $ 1,855 $ 2,754 (1) Company actual before income taxes, excluding general and administrative expenses. (2) The impact of changes in prices and other economic factors on future net revenue. (3) Actual capital expenditures relating to the exploration, development and production of oil and gas reserves. (4) The change in forecast development costs. (5) End of period net present value of the related reserves. (6) Estimated as 10 percent of the beginning of period net present value and the period forecast before tax cashflow net present value. (7) The difference between forecast income taxes at beginning of period and the actual taxes for the period plus forecast income taxes at the end of period. (8) Includes changes due to revised production profiles, development timing, operating costs, royalty rates and actual prices received versus forecast, etc. |
Structure of Obsidian Energy -
Structure of Obsidian Energy - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2023 Segment | |
Disclosure of operating segments [line items] | |
Number of operating segment | 1 |
Percentage of ownership in petroleum and natural gas assets | 100% |
Material accounting policies -
Material accounting policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2023 | |
Summary Of Significant Accounting Policies [Line items] | |
Description of conversion of oil and gas products | Natural gas volumes are converted to equivalent oil volumes based upon the relative energy content of six thousand cubic feet of natural gas to one barrel of oil. |
Corporate asset component [member] | |
Summary Of Significant Accounting Policies [Line items] | |
Estimated useful life | 10 years |
Bottom of range [member] | |
Summary Of Significant Accounting Policies [Line items] | |
Percentage of economically recoverable proved reserves | 90% |
Bottom of range [member] | Turnaround component [member] | |
Summary Of Significant Accounting Policies [Line items] | |
Estimated useful life | 3 years |
Top of range [member] | Turnaround component [member] | |
Summary Of Significant Accounting Policies [Line items] | |
Estimated useful life | five years |
Property, plant and equipment -
Property, plant and equipment - Disclosure of Property Plant and Equipment (Detail) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | $ 1,857.6 | ||
Ending balance | 1,944 | $ 1,857.6 | |
Cost [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 10,931.7 | 10,528.7 | |
Capital expenditures | 292.5 | 314.8 | |
Property acquisitions | 0.6 | 4.6 | |
Change in decommissioning liability | [1] | (1) | 83.6 |
Ending balance | 11,223.8 | 10,931.7 | |
Accumulated depletion, depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (9,079.4) | (9,194.6) | |
Depletion and depreciation | 204.9 | 170.4 | |
Impairments | 2.7 | 36.4 | |
Impairment reversal | (322) | ||
Ending balance | (9,287) | (9,079.4) | |
Oil and gas assets/Facilities [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 1,852.3 | ||
Ending balance | 1,936.8 | 1,852.3 | |
Oil and gas assets/Facilities [member] | Cost [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 10,754.3 | 10,352.2 | |
Capital expenditures | 290.7 | 313.9 | |
Property acquisitions | 0.6 | 4.6 | |
Change in decommissioning liability | [1] | (1) | 83.6 |
Ending balance | 11,044.6 | 10,754.3 | |
Oil and gas assets/Facilities [member] | Accumulated depletion, depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (8,902.8) | (9,018.1) | |
Depletion and depreciation | 204.8 | 170.3 | |
Impairments | 2.7 | 36.4 | |
Impairment reversal | (322) | ||
Ending balance | (9,110.3) | (8,902.8) | |
Corporate assets [member] | Cost [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 177.4 | 176.5 | |
Capital expenditures | 1.8 | 0.9 | |
Ending balance | 179.2 | 177.4 | |
Corporate assets [member] | Accumulated depletion, depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (176.6) | (176.5) | |
Depletion and depreciation | 0.1 | 0.1 | |
Ending balance | $ (176.7) | $ (176.6) | |
[1] Includes additions from drilling activity, facility capital spending, disposals from net property dispositions and changes in estimates as outlined in Note 7 . |
Property, plant and equipment_2
Property, plant and equipment - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Reversal of non cash impairment charge | $ 322 | |
Non cash impairment charge | $ 2.7 | 36.4 |
Future development costs | 1,429.2 | 1,254.8 |
Cardium [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Reversal of non cash impairment charge | 315.3 | |
Legacy CGU [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Reversal of non cash impairment charge | 0.2 | 6.7 |
Impairment | 2.7 | 29.7 |
Non cash impairment charge | $ 2.9 | $ 36.4 |
Property, plant and equipment
Property, plant and equipment - Summary of Right of Use Assets (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | $ 5.3 | |
Ending balance | 7.2 | $ 5.3 |
Accumulated depletion, depreciation and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (20.5) | (16.8) |
Depreciation | 3.4 | 3.7 |
Ending balance | (23.9) | (20.5) |
Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 25.8 | 24.8 |
Additions | 5.3 | 1 |
Ending balance | 31.1 | 25.8 |
Transportation | Accumulated depletion, depreciation and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (14.8) | (12.6) |
Depreciation | 1.5 | 2.2 |
Ending balance | (16.3) | (14.8) |
Transportation | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 16.3 | 16.3 |
Ending balance | 16.3 | 16.3 |
Vehicles | Accumulated depletion, depreciation and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (5.4) | (4) |
Depreciation | 1.9 | 1.4 |
Ending balance | (7.3) | (5.4) |
Vehicles | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 7.4 | 6.4 |
Additions | 2.6 | 1 |
Ending balance | 10 | 7.4 |
Office | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Additions | 2.7 | |
Ending balance | 2.7 | |
Surface | Accumulated depletion, depreciation and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (0.3) | (0.2) |
Depreciation | 0.1 | |
Ending balance | (0.3) | (0.3) |
Surface | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 2.1 | 2.1 |
Ending balance | $ 2.1 | $ 2.1 |
Property, plant and equipment_3
Property, plant and equipment - Summary of Property Plant Equipment And Right Of Use Assets (Detail) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Oil and Gas assets, Facilities, Corporate assets | $ 1,936.8 | $ 1,852.3 |
Right-of-use assets | 7.2 | 5.3 |
Total | $ 1,944 | $ 1,857.6 |
Property, plant and equipment_4
Property, plant and equipment - Disclosure of Benchmark Prices Used in Impairment Tests (Detail) | Dec. 31, 2022 $ / $ $ / bbl $ / MMBTU |
Disclosure of detailed information about property, plant and equipment [line items] | |
2023 | $ / $ | 0.74 |
2024 | $ / $ | 0.76 |
2025 | $ / $ | 0.76 |
2026 | $ / $ | 0.77 |
2027 | $ / $ | 0.77 |
2028 – 2033 | $ / $ | 0.77 |
2023 | 0% |
2024 | 2.50% |
2025 | 2% |
2026 | 2% |
2027 | 2% |
2028 – 2033 | 2% |
Thereafter (inflation percentage) | 2% |
WTI [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
2023 | $ / bbl | 80.25 |
2024 | $ / bbl | 78.19 |
2025 | $ / bbl | 76.1 |
2026 | $ / bbl | 76.96 |
2027 | $ / bbl | 78.5 |
2028 – 2033 | $ / bbl | 84.18 |
Thereafter (inflation percentage) | 2% |
AECO [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
2023 | $ / MMBTU | 4.44 |
2024 | $ / MMBTU | 4.54 |
2025 | $ / MMBTU | 4.37 |
2026 | $ / MMBTU | 4.44 |
2027 | $ / MMBTU | 4.52 |
2028 – 2033 | $ / MMBTU | 4.84 |
Thereafter (inflation percentage) | 2% |
Property, plant and equipment_5
Property, plant and equipment - Details of Estimated Recoverable Amount on Impairment Test (Detail) - Cardium [member] $ in Millions | 12 Months Ended |
Dec. 31, 2022 CAD ($) | |
1% change in discount rate | |
Disclosure of estimated recoverable amount on impairment test [Line Items] | |
Impairment | $ 93 |
5% change in cash flows | |
Disclosure of estimated recoverable amount on impairment test [Line Items] | |
Impairment | 119.9 |
Recoverable amount | |
Disclosure of estimated recoverable amount on impairment test [Line Items] | |
Impairment | $ 1,652.6 |
Long-term debt - Schedule of Lo
Long-term debt - Schedule of Long-term Debt (Detail) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 224.9 | [1] | $ 232.6 |
Notional amount | 224.9 | 232.6 | |
Unamortized discount of senior unsecured notes | (1.6) | (2.3) | |
Deferred financing costs | (3.3) | (5) | |
Total long-term debt | 220 | 225.3 | |
Current portion | 2 | 0 | |
Non-current portion | 218 | 225.3 | |
Syndicated Credit Facility [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 107.5 | 105 | |
11.95% $118.4 million, maturing July 27, 2027 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 117.4 | $ 127.6 | |
[1] The 2025 figure includes our syndicated credit facility which has a term-out date of May 2025 . The 2027 figure includes our senior unsecured notes due in July 2027 . Refer to Note 5 for further details. Historically, the Company has successfully renewed its syndicated credit facility. |
Long-term debt - Schedule of _2
Long-term debt - Schedule of Long-term Debt (Parenthetical) (Detail) - 11.95% $118.4 million, maturing July 27, 2027 [member] - Loan Maturity Date Extension [Member] - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of detailed information about borrowings [line items] | ||
Debt, interest rate | 11.95% | 11.95% |
Debt | $ 117.4 | $ 117.4 |
Debt, maturity date | July 27, 2027 | July 27, 2027 |
Long-term debt - Additional Inf
Long-term debt - Additional Information (Detail) - CAD ($) | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2024 | Jan. 01, 2024 | Jun. 30, 2023 | Dec. 31, 2021 | |||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowings | $ 224,900,000 | [1] | $ 224,900,000 | [1] | $ 232,600,000 | ||||
Letters of credit outstanding | 4,900,000 | 4,900,000 | 5,100,000 | ||||||
Cash and cash equivalents | 500,000 | 500,000 | 800,000 | $ 7,300,000 | |||||
Notional amount | 224,900,000 | $ 224,900,000 | $ 232,600,000 | ||||||
Senior Unsecured Notes [Member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowings, maturity | July 27, 2027 | ||||||||
Borrowings | 117,400,000 | $ 117,400,000 | |||||||
Borrowings repurchased amount | $ 5,300,000 | $ 5,300,000 | |||||||
Interest rate | 11.95% | 11.95% | |||||||
Discounted price per note | $ 990 | $ 990 | $ 980 | ||||||
Principal price per note | $ 1,000 | $ 1,000 | $ 1,000 | ||||||
Proceeds from borrowings | 125,000,000 | ||||||||
Borrowings repurchase offering amount | 36,800,000 | $ 36,800,000 | $ 63,800,000 | ||||||
Reduction to borrowings repurchase offering amount | $ 53,600,000 | ||||||||
Addition to borrowings repurchase offering amount | 5,000,000 | ||||||||
Repurchase offer price per note | $ 1,030 | ||||||||
Events Subsequent To Reporting Period [member] | Senior Unsecured Notes [Member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowings | $ 116,200,000 | ||||||||
Borrowings repurchased amount | $ 1,200,000 | ||||||||
Discounted price per note | $ 1,016 | ||||||||
Principal price per note | $ 1,000 | ||||||||
Borrowings repurchase offering amount | $ 2,000,000 | ||||||||
Syndicated Credit Facility [member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Available borrowing facilities | $ 240,000,000 | $ 240,000,000 | |||||||
Borrowings, maturity | May 31, 2025 | ||||||||
Credit facility term date | May 31, 2024 | ||||||||
New Syndicated Credit Facility [Member] | Five-year Senior Unsecured Notes [Member] | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Available borrowing facilities | $ 127,600,000 | ||||||||
Borrowings, term | 5 years | ||||||||
[1] The 2025 figure includes our syndicated credit facility which has a term-out date of May 2025 . The 2027 figure includes our senior unsecured notes due in July 2027 . Refer to Note 5 for further details. Historically, the Company has successfully renewed its syndicated credit facility. |
Long-term debt - Detailed Infor
Long-term debt - Detailed Information About In Financing Expense (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement [Line Items] | ||
Interest | $ 27.2 | $ 29.1 |
Accretion on decommissioning liability | 17.5 | 11.6 |
Accretion on office lease provision | 0.9 | 1.4 |
Accretion on other non-current liability | 0 | 0.3 |
Accretion on discount of senior unsecured notes | 0.5 | 0.2 |
Accretion on lease liabilities | 0.4 | 0.6 |
Loss on repurchased senior unsecured notes | 0.5 | 0 |
Deferred financing costs | 2.3 | 2.5 |
Debt modification | 0 | (0.8) |
Finance costs | $ 49.3 | $ 44.9 |
Lease Liabilities - Detailed In
Lease Liabilities - Detailed Information About In Lease Liabilities Included In Consolidated Balance Sheet (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lease liabilities [abstract] | ||
Balance, beginning of year | $ 6 | $ 8.7 |
Additions | 5.3 | 1 |
Accretion charges | 0.4 | 0.6 |
Lease payments | (3.7) | (4.3) |
Balance, end of year | 8 | 6 |
Current portion | 1.9 | 3.2 |
Non-current portion | $ 6.1 | $ 2.8 |
Lease Liabilities - Detailed _2
Lease Liabilities - Detailed Information About In Maturity Lease Payments (Detail) $ in Millions | Dec. 31, 2023 CAD ($) |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | $ 12.3 |
2024 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 1.9 |
2025 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 2 |
2026 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 1.6 |
2027 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 1.3 |
2028 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0.7 |
Thereafter [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 4.8 |
Vehicles [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 3.5 |
Vehicles [member] | 2024 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 1.8 |
Vehicles [member] | 2025 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 1.3 |
Vehicles [member] | 2026 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0.4 |
Vehicles [member] | 2027 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0 |
Vehicles [member] | 2028 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0 |
Vehicles [member] | Thereafter [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0 |
Office [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 3.5 |
Office [member] | 2024 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0 |
Office [member] | 2025 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0.6 |
Office [member] | 2026 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 1.1 |
Office [member] | 2027 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 1.2 |
Office [member] | 2028 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0.6 |
Office [member] | Thereafter [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0 |
Surface [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 5.3 |
Surface [member] | 2024 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0.1 |
Surface [member] | 2025 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0.1 |
Surface [member] | 2026 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0.1 |
Surface [member] | 2027 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0.1 |
Surface [member] | 2028 [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | 0.1 |
Surface [member] | Thereafter [member] | |
Statement [Line Items] | |
Undiscounted Finance lease payments to be paid | $ 4.8 |
Provisions - Summary of Provisi
Provisions - Summary of Provisions (Detail) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of Provisions [line items] | |||
Decommissioning liability | $ 172.6 | $ 182.3 | $ 121.6 |
Office lease provision (existing) | 9.4 | 17.5 | $ 25.6 |
Total | 182 | 199.8 | |
Current portion | 32.1 | 34.1 | |
Non-current portion | $ 149.9 | $ 165.7 |
Provisions - Additional Informa
Provisions - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 CAD ($) yr | Dec. 31, 2022 CAD ($) | Dec. 31, 2021 CAD ($) | |
Disclosure of provision matrix [line items] | |||
Decommissioning liability, inflation factor rate | 2% | 2% | |
Decommissioning liability, credit-adjusted rate | 10% | 10% | |
Decommissioning liability, expected useful life | yr | 50 | ||
Decommissioning liability | $ 172.6 | $ 182.3 | $ 121.6 |
Office lease provision, credit-adjusted discount rate | 6.50% | 6.50% | |
Decommissioning liability on undiscounted uninflated basis [member] | |||
Disclosure of provision matrix [line items] | |||
Decommissioning liability | $ 578.9 | $ 582.7 |
Provisions - Summary of Changes
Provisions - Summary of Changes to Decommissioning Liability (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of Provisions [line items] | ||
Balance, beginning of year | $ 182.3 | $ 121.6 |
Net liabilities added | 1.3 | 0.3 |
Increase (decrease) due to changes in estimates | (2.3) | 83.3 |
Liabilities settled | (26.6) | (18.8) |
Government decommissioning assistance | 0.4 | (15.7) |
Accretion charges | 17.5 | 11.6 |
Balance, end of year | 172.6 | 182.3 |
Current portion | 23.4 | 25.4 |
Non-current portion | $ 149.2 | $ 156.9 |
Provisions - Summary of Chang_2
Provisions - Summary of Changes to Office Lease Provision (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of Provisions [line items] | ||
Balance, beginning of year | $ 17.5 | $ 25.6 |
Decrease due to changes in estimates | (0.3) | |
Settlements | (9) | (9.2) |
Accretion charges | 0.9 | 1.4 |
Balance, end of year | 9.4 | 17.5 |
Current portion | 8.7 | 8.7 |
Non-current portion | $ 0.7 | $ 8.8 |
Risk management - Additional In
Risk management - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2023 CAD ($) MMcf | Dec. 31, 2022 CAD ($) | |
Disclosure of risk management strategy [line items] | ||
Risk management, description | the Company may, from time to time, manage these risks through the use of swaps or other financial instruments up to a maximum of 50 percent of forecast sales volumes, net of royalties, for the balance of any current year plus one additional year forward and up to a maximum of 25 percent, net of royalties, for one additional year thereafter. | |
Realized loss | $ 17,700,000 | $ (31,900,000) |
Maximum exposure to credit risk | 82,800,000 | 89,600,000 |
Accounts receivable, carrying value | 70,000,000 | 82,600,000 |
Derivative financial assets, fair value | 12,300,000 | 6,200,000 |
Cash | $ 500,000 | $ 800,000 |
Percentage of long term debt instruments exposed to changes in short term interest rates | 48% | 45% |
Fixed interest rate debt instruments outstanding | $ 117,400,000 | $ 127,600,000 |
Fixed interest rate debt instruments remaining term | 3 years 7 months 6 days | 4 years 7 months 6 days |
Interest rate | 11.95% | 11.95% |
Impairment | $ 0 | |
Impairment reversal | 0 | |
PROP Energy 45 Limited Partnership [member] | ||
Disclosure of risk management strategy [line items] | ||
Realized loss | $ 3,400,000 | |
Later than three months [member] | ||
Disclosure of risk management strategy [line items] | ||
Accounts receivable, carrying value | $ 1,300,000 | $ 1,000,000 |
Natural gas [member] | ||
Disclosure of risk management strategy [line items] | ||
Pre-tax unrealized risk management, change in price per unit | MMcf | 0.1 | |
Natural gas [member] | Summer Gas Months [Member] | ||
Disclosure of risk management strategy [line items] | ||
Maximum percentage of volumes to be hedged net of royalties | 90% | |
Natural gas [member] | 2023 Winter Gas Months [Member] | ||
Disclosure of risk management strategy [line items] | ||
Maximum percentage of volumes to be hedged net of royalties | 80% | |
Natural gas [member] | 2024 Winter Gas Months [Member] | ||
Disclosure of risk management strategy [line items] | ||
Maximum percentage of volumes to be hedged net of royalties | 80% | |
Electricity [Member] | ||
Disclosure of risk management strategy [line items] | ||
Pre-tax unrealized risk management, change in price per unit | MMcf | 1 | |
Pre-tax unrealized risk management, change in price, amount | $ 100,000 | |
CrudeOil [Member] | ||
Disclosure of risk management strategy [line items] | ||
Maximum percentage of volumes to be hedged net of royalties | 50% | |
MCF Of Gas [Member] | ||
Disclosure of risk management strategy [line items] | ||
Pre-tax unrealized risk management, change in price, amount | $ 1,500,000 |
Risk management - Summary of Re
Risk management - Summary of Reconciliation of Change in Fair Value of Financial Instruments Outstanding (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Total fair value consists of the following: | ||
Current asset portion | $ 11.3 | $ 6.2 |
Current liability portion | (0.5) | 0 |
Non-current asset portion | 1 | 0 |
At fair value [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Balance, beginning of year | 6.2 | (2.4) |
Oil | 0 | 4 |
Natural gas | 6.1 | 4.6 |
Electricity | (0.5) | 0 |
Total fair value, end of year | $ 11.8 | $ 6.2 |
Risk management - Schedule of F
Risk management - Schedule of Financial Instruments Outstanding (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2023 CAD ($) MWh MMcf bbl | |
Disclosure of detailed information about financial instruments [line items] | |
Financial Assets, at fair value | $ | $ 11.8 |
January - March 2024 | AECO Swaps [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, notional volume | 32,749 |
Financial instruments, remaining term, description | January - March 2024 |
Financial instruments price | 3.35 |
Financial Assets, at fair value | $ | $ 4.1 |
April 2024 - October 2024 | AECO Swaps [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, notional volume | 43,365 |
Financial instruments, remaining term, description | April 2024 - October 2024 |
Financial instruments price | 2.52 |
Financial Assets, at fair value | $ | $ 6.4 |
November 2024 - March 2025 | AECO Swaps [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, notional volume | 14,929 |
Financial instruments, remaining term, description | November 2024 - March 2025 |
Financial instruments price | 3.74 |
Financial Assets, at fair value | $ | $ 1.4 |
November 2024 - March 2025 | AECO Collar [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, notional volume | 4,976 |
Financial instruments, remaining term, description | November 2024 - March 2025 |
Financial Assets, at fair value | $ | $ 0.4 |
November 2024 - March 2025 | AECO Collar [member] | Bottom of range [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments price | 3.43 |
November 2024 - March 2025 | AECO Collar [member] | Top of range [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments price | 4.11 |
January - December 2024 | Power Swap [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, notional volume | MWh | 144 |
Financial instruments, remaining term, description | January - December 2024 |
Financial instruments price | MWh | 92.83 |
Financial Assets, at fair value | $ | $ (0.5) |
Oil [member] | WCS Differential [Member] | April 2024 - June 2024 | |
Disclosure of detailed information about financial instruments [line items] | |
Financial instruments, notional volume | bbl | 750 |
Financial instruments, remaining term, description | April 2024 - June 2024 |
Financial instruments price | bbl | 18.8 |
Risk management - Components of
Risk management - Components of Risk Management on Consolidated Statements of Income (Loss) (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Settlement of oil contracts gain (loss) | $ 2.2 | $ (25.5) |
Settlement of natural gas contracts gain (loss) | 15.5 | (6.4) |
Total realized risk management gain (loss) | 17.7 | (31.9) |
Oil contracts gain | 4 | |
Natural gas contracts gain | 6.1 | 4.6 |
Total unrealized risk management gain | 6.1 | 8.6 |
Risk management gain (loss) | $ 23.8 | $ (23.3) |
Risk management - Components _2
Risk management - Components of Risk Management Within Expenses on the Consolidated Statements of Income (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Total unrealized risk management loss | $ 6.1 | $ 8.6 |
Risk management loss | 5.6 | $ 8.6 |
Expense [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Electricity contracts loss | (0.5) | |
Total unrealized risk management loss | (0.5) | |
Risk management loss | $ (0.5) |
Risk management - Disclosure of
Risk management - Disclosure of Detailed Information about Accounts Receivable (Detail) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of accounts receivables [line items] | ||
Accounts receivables | $ 70 | $ 82.6 |
Current [member] | ||
Disclosure of accounts receivables [line items] | ||
Accounts receivables | 63 | 76.5 |
Later than one month and not later than three months [member] | ||
Disclosure of accounts receivables [line items] | ||
Accounts receivables | 5.7 | 5.1 |
Later than three months [member] | ||
Disclosure of accounts receivables [line items] | ||
Accounts receivables | $ 1.3 | $ 1 |
Risk management - Summary of Es
Risk management - Summary of Estimated Future Obligations for Non-Derivative Financial Liabilities (Detail) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of financial liabilities [line items] | |||
Borrowings | $ 224.9 | [1] | $ 232.6 |
2024 [member] | |||
Disclosure of financial liabilities [line items] | |||
Borrowings | 0 | ||
Accounts payable & accrued liabilities | 163.9 | ||
Share-based compensation accrual | 29.6 | ||
Total | 193.5 | ||
2025 [member] | |||
Disclosure of financial liabilities [line items] | |||
Borrowings | 107.5 | ||
Accounts payable & accrued liabilities | 0 | ||
Share-based compensation accrual | 1.5 | ||
Total | 109 | ||
2026 [member] | |||
Disclosure of financial liabilities [line items] | |||
Borrowings | 0 | ||
Accounts payable & accrued liabilities | 0 | ||
Share-based compensation accrual | 1.1 | ||
Total | 1.1 | ||
2027 [member] | |||
Disclosure of financial liabilities [line items] | |||
Borrowings | 117.4 | ||
Accounts payable & accrued liabilities | 0 | ||
Share-based compensation accrual | 0 | ||
Total | 117.4 | ||
2028 [Member] | |||
Disclosure of financial liabilities [line items] | |||
Borrowings | 0 | ||
Accounts payable & accrued liabilities | 0 | ||
Share-based compensation accrual | 0 | ||
Total | 0 | ||
Thereafter [member] | |||
Disclosure of financial liabilities [line items] | |||
Borrowings | 0 | ||
Accounts payable & accrued liabilities | 0 | ||
Share-based compensation accrual | 0 | ||
Total | $ 0 | ||
[1] The 2025 figure includes our syndicated credit facility which has a term-out date of May 2025 . The 2027 figure includes our senior unsecured notes due in July 2027 . Refer to Note 5 for further details. Historically, the Company has successfully renewed its syndicated credit facility. |
Revenue and Other Income - Disc
Revenue and Other Income - Disclosure of Significant Revenue (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Production revenues | $ 720.6 | $ 897.3 |
Processing fees | 14.3 | 8.4 |
Oil and natural gas sales | 734.9 | 905.7 |
Other income | 7.2 | 6.9 |
Oil and natural gas sales and other income | 742.1 | 912.6 |
Crude oil [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Production revenues | 596 | 697.9 |
Natural gas liquids [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Production revenues | 51.2 | 63.1 |
Natural gas [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Production revenues | $ 73.4 | $ 136.3 |
Revenue and Other Income - Addi
Revenue and Other Income - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Other income | $ 7.2 | $ 6.9 |
Road Use Recoveries [Member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Other income | $ 7.2 | $ 6.9 |
Income taxes - Summary of Provi
Income taxes - Summary of Provision for Income Taxes Reflects Effective Tax Rate (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure representing major components of tax expense income [line items] | ||
Income before taxes | $ 143.6 | $ 563.7 |
Combined statutory tax rate | 23% | 23% |
Computed income tax expense | $ 33 | $ 129.7 |
Increase (decrease) resulting from: | ||
Share-based compensation | 1.8 | 1.1 |
Non-taxable foreign exchange loss | 0.2 | |
Recognition of deferred tax asset | (378.6) | |
Adjustments related to prior years | 0.8 | (0.4) |
Other | 1.6 | |
Deferred income tax expense (recovery) | $ 35.6 | $ (246.4) |
Income taxes - Summary of Net D
Income taxes - Summary of Net Deferred Income Tax Asset (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning Balance | $ (246.4) | $ 0 |
Provision (Recovery) in Income | 35.6 | (246.4) |
Ending Balance | (210.8) | (246.4) |
PP&E [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning Balance | 249.5 | 153.5 |
Provision (Recovery) in Income | (1.6) | 96 |
Ending Balance | 247.9 | 249.5 |
Risk Management [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning Balance | 1.4 | (0.5) |
Provision (Recovery) in Income | 1.3 | 1.9 |
Ending Balance | 2.7 | 1.4 |
Leases [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning Balance | (5.5) | (7.9) |
Provision (Recovery) in Income | 1.5 | 2.4 |
Ending Balance | (4) | (5.5) |
Decommissioning liability [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning Balance | (41.9) | (27.9) |
Provision (Recovery) in Income | 2.2 | (14) |
Ending Balance | (39.7) | (41.9) |
Share-based Compensation [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning Balance | (7.3) | (4) |
Provision (Recovery) in Income | (0.1) | (3.3) |
Ending Balance | (7.4) | (7.3) |
Non-capital Losses [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning Balance | (442.6) | (113.2) |
Provision (Recovery) in Income | 32.3 | (329.4) |
Ending Balance | $ (410.3) | $ (442.6) |
Income taxes - Additional Infor
Income taxes - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax pool | $ 2,400 | $ 2,400 |
Non-capital losses | 1,800 | 1,900 |
Realized and unrealized net capital losses | 837.4 | 711.2 |
Tax benefit arising from federal scientific research and development | 61.3 | |
Deferred tax assets | $ 210.8 | $ 246.4 |
Shareholders' equity - Addition
Shareholders' equity - Additional Information (Detail) - CAD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of classes of share capital [line items] | ||||
Assets | $ 2,250.4 | $ 2,204.3 | ||
Common shares [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Number of authorized common shares | An unlimited number of Common Shares | |||
Number of shares issued | 77,588,538 | 82,442,210 | 80,753,516 | |
Common shares [member] | XTSE | ||||
Disclosure of classes of share capital [line items] | ||||
Assets | $ 65 | |||
Shares repurchased and canceled in the period | 5,083,635 | |||
Common stock average price | $ 9.32 | |||
Total consideration paid | $ 47.4 | |||
Preferred shares [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Number of authorized preferred shares | 90,000,000 | |||
Number of authorized common shares | shares issuable in one or more series. | |||
Number of shares issued | 0 | |||
Number of shares outstanding | 0 |
Shareholders' equity - Summary
Shareholders' equity - Summary of Issued Capital (Detail) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Disclosure of classes of share capital [line items] | |||
Balance, beginning of year | $ 2,221.9 | ||
Issued pursuant to equity compensation plans | (4.5) | $ 1.4 | |
Repurchase of common shares for cancellation | (47.4) | ||
Balance, end of year | 2,175.1 | 2,221.9 | |
Common shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Balance, beginning of year | 2,221.9 | 2,213.8 | |
Issued pursuant to equity compensation plans | [1] | 0.6 | 8.1 |
Repurchase of common shares for cancellation | (47.4) | ||
Balance, end of year | $ 2,175.1 | $ 2,221.9 | |
Balance, beginning of year | 82,442,210 | 80,753,516 | |
Issued pursuant to equity compensation plans | [1] | 229,963 | 1,688,694 |
Repurchase of common shares for cancellation | (5,083,635) | ||
Balance, end of year | 77,588,538 | 82,442,210 | |
[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. |
Shareholders' equity - Summar_2
Shareholders' equity - Summary of Other Reserves (Detail) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Disclosure of reserves within equity [line items] | |||
Balance, beginning of year | $ 101.2 | $ 103.2 | |
Share-based compensation expense | 8 | 4.7 | |
Net benefit on options exercised | [1] | (5.1) | (6.7) |
Balance, end of year | $ 104.1 | $ 101.2 | |
[1] Upon exercise of options, the net benefit is recorded as a reduction of other reserves and an increase to shareholders’ capital. |
Share-based compensation - Summ
Share-based compensation - Summary of Restricted Share Units Plan (Detail) - Restricted share unit plan [member] | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding, beginning of year | 874,130 | 1,167,351 | |
Granted | 991,860 | 537,225 | |
Vested | [1] | (541,357) | (784,514) |
Forfeited | (34,591) | (45,932) | |
Outstanding, end of year | 1,290,042 | 874,130 | |
[1] Vested RSUs in 2023 were settled in cash and in 2022 were settled in shares. |
Share-based compensation - Su_2
Share-based compensation - Summary of Weighted Average Assumptions of RSU Plan Units Under Equity Method (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Expected forfeiture rate | 0.20% | 0.30% |
Restricted share unit plan [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Average fair value of RSUs granted (per RSU) | $ 9.86 | $ 10.59 |
Expected life of RSUs (years) | 2.6 | 2.9 |
Expected forfeiture rate | 0.10% | 0.50% |
Share-based compensation - Su_3
Share-based compensation - Summary of Performance Share Unit Plan (Detail) - PSU Plan [member] - Options granted from June 2017 [member] | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding, beginning of year | 949,040 | 1,138,465 | |
Granted | 239,360 | 124,610 | |
Vested | [1] | (291,710) | (181,018) |
Forfeited | 0 | (133,017) | |
Outstanding, end of year | 896,690 | 949,040 | |
[1] Vested PSUs in 2023 were settled in cash and in 2022 were settled in shares. |
Share-based compensation - Su_4
Share-based compensation - Summary of Stock Option Activity and Related Information (Detail) - Options [member] | 12 Months Ended | ||
Dec. 31, 2023 $ / shares | Dec. 31, 2022 $ / shares | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of Options Outstanding, beginning of year | 2,274,672 | 3,021,672 | |
Number of Options, Granted | 260,780 | 156,400 | |
Number of Options, Exercised | [1] | (229,963) | (903,400) |
Number of Options Outstanding, end of year | 2,305,489 | 2,274,672 | |
Number of Options Exercisable, end of year | 1,064,115 | 749,498 | |
Weighted Average Exercise Price Outstanding, beginning of year | $ 2.3 | $ 1.56 | |
Weighted Average Exercise Price, Granted | 10.32 | 10.64 | |
Weighted Average Exercise Price, Exercised | [1] | 1.42 | 1.27 |
Weighted Average Exercise Price, Outstanding, end of year | 3.3 | 2.3 | |
Weighted Average Exercise Price, Exercisable, end of year | $ 2.02 | $ 1.69 | |
[1] Exercised options in 2023 and 2022 were settled in shares. |
Share-based compensation - Su_5
Share-based compensation - Summary of Non Treasury Incentive Award Plan and Deferred Share Unit (Detail) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Non-Treasury Incentive Awards Plan [member] | |||
Statement [Line Items] | |||
Outstanding, beginning of year | 689,228 | 1,093,800 | |
Granted | 0 | 3,400 | |
Vested | [1] | (344,074) | (363,871) |
Forfeited | (16,160) | (44,101) | |
Outstanding, end of year | 328,994 | 689,228 | |
Deferred Share Units Plan | |||
Statement [Line Items] | |||
Outstanding, beginning of year | 1,811,245 | 2,018,499 | |
Granted | 82,035 | 42,509 | |
Vested | 0 | (249,763) | |
Outstanding, end of year | 1,893,280 | 1,811,245 | |
[1] Vested NTIPs in 2023 and 2022 were settled in cash. |
Share-based compensation - Addi
Share-based compensation - Additional Information (Detail) - CAD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of classes of share capital [line items] | ||
Weighted average share price | $ 8.99 | $ 8.98 |
Employer contributions to employee retirement savings plan percentage of employee contribution | $1.00 for each $1.00 of employee contribution | |
Share based payment arrangement outstanding DSUs redeemable | $ 0 | |
Employee [Member] | Bottom of range [member] | ||
Disclosure of classes of share capital [line items] | ||
Percentage of employees contribution | 10% | |
Employee [Member] | Top of range [member] | ||
Disclosure of classes of share capital [line items] | ||
Percentage of employees contribution | 25% | |
Officers [Member] | ||
Disclosure of classes of share capital [line items] | ||
Percentage of employees contribution | 50% | |
Deferred share unit [member] | ||
Disclosure of classes of share capital [line items] | ||
Share-based payment arrangement, cash used to redeem award | $ 0 | $ 3,600,000 |
Share-based compensation - Su_6
Share-based compensation - Summary of Fair Value and Weighted Average Assumptions of the Options Granted (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Average fair value of Options granted (per Option) | $ 10.32 | $ 6.56 |
Expected volatility | 78.80% | 87% |
Expected life of Options (years) | 3 years 8 months 12 days | 3 years 10 months 24 days |
Expected forfeiture rate | 0.20% | 0.30% |
Share-based compensation - Su_7
Share-based compensation - Summary of Share Based Compensation Recognized Liabilities (Detail) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
PSU Plan [member] | ||
Disclosure of Detailed Information About Share Based Compensation Recognized Liabilities [Line Items] | ||
Current | $ 9.8 | $ 5.2 |
Non-current | 2.6 | 6.1 |
Total | 12.4 | 11.3 |
Non-Treasury Incentive Awards Plan [member] | ||
Disclosure of Detailed Information About Share Based Compensation Recognized Liabilities [Line Items] | ||
Current | 2.7 | 2.6 |
Non-current | 0 | 1.8 |
Total | 2.7 | 4.4 |
Deferred share unit [member] | ||
Disclosure of Detailed Information About Share Based Compensation Recognized Liabilities [Line Items] | ||
Current | 17.1 | 16.6 |
Total | $ 17.1 | $ 16.6 |
Share-based compensation - Su_8
Share-based compensation - Summary of Share-Based Compensation (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Expense from cash-settled share-based payment transactions | $ 8.2 | $ 23.4 |
Expense from equity-settled share-based payment transactions | 8 | 4.7 |
Share-based compensation | 16.2 | 28.1 |
DSU Plan [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Expense from cash-settled share-based payment transactions | 0.5 | 9.5 |
PSU grants [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Expense from cash-settled share-based payment transactions | 6.3 | 8 |
Non-Treasury Incentive Awards Plan [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Expense from cash-settled share-based payment transactions | 1.4 | 5.9 |
RSU grants [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Expense from equity-settled share-based payment transactions | 6.7 | 3.4 |
Options [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Expense from equity-settled share-based payment transactions | $ 1.3 | $ 1.3 |
Per share amounts - Disclosure
Per share amounts - Disclosure of Detailed Information about Net Loss Basic and Diluted (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings per share [line items] | ||
Net income | $ 108 | $ 810.1 |
Per share amounts - Disclosur_2
Per share amounts - Disclosure of Detailed Information about Weighted Average Number of Shares Per Share (Detail) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings per share [line items] | ||
Basic | 80.9 | 82 |
Dilutive impact | 3.2 | 2.4 |
Diluted | 84.1 | 84.4 |
Per share amounts - Additional
Per share amounts - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings per share [line items] | ||
Anti-dilutive securities issued under option plan | 0.3 | 0.2 |
Changes in non-cash working c_3
Changes in non-cash working capital increase (decrease) - Summary of Changes in Non-cash Working Capital (Increase) Decrease (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of Increase Decrease In Non-cash Working Capital [line items] | ||
Accounts receivable | $ 12.6 | $ (13.7) |
Prepaid expenses and other | (2.1) | (1.6) |
Accounts payable, accrued liabilities and other non-current liabilities | 2.6 | 78.7 |
Net changes in non cash working capital | 13.1 | 63.4 |
Operating activities | 13.6 | 34.8 |
Investing activities | (0.5) | 28.6 |
Net changes in non cash working capital | 13.1 | 63.4 |
Interest paid in cash | $ 27.5 | $ 29.2 |
Capital management - Summary of
Capital management - Summary of Financial Covenants Under Lending Agreements (Detail) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Components of capital | ||||
Shareholders' equity | $ 1,643.8 | $ 1,579.7 | $ 763.5 | |
Long-term debt | $ 224.9 | [1] | $ 232.6 | |
[1] The 2025 figure includes our syndicated credit facility which has a term-out date of May 2025 . The 2027 figure includes our senior unsecured notes due in July 2027 . Refer to Note 5 for further details. Historically, the Company has successfully renewed its syndicated credit facility. |
Commitments and contingencies -
Commitments and contingencies - Summary of Certain Payments Over the Next Five Years (Detail) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | ||
Disclosure of commitments and contingencies [line items] | ||||
Long-term debt | $ 224.9 | [1] | $ 232.6 | |
Transportation | 39 | |||
Interest obligations | 69.2 | |||
Office lease (existing) | 10.8 | |||
Lease liability | 12.3 | |||
Decommissioning liability | 172.5 | |||
Total | 528.7 | |||
2024 [member] | ||||
Disclosure of commitments and contingencies [line items] | ||||
Transportation | 9.5 | |||
Interest obligations | 23.3 | |||
Office lease (existing) | 10 | |||
Lease liability | 1.9 | |||
Decommissioning liability | 23.4 | |||
Total | 68.1 | |||
2025 [member] | ||||
Disclosure of commitments and contingencies [line items] | ||||
Long-term debt | [1] | 107.5 | ||
Transportation | 7.3 | |||
Interest obligations | 17.9 | |||
Office lease (existing) | 0.8 | |||
Lease liability | 2 | |||
Decommissioning liability | 21.8 | |||
Total | 157.3 | |||
2026 [member] | ||||
Disclosure of commitments and contingencies [line items] | ||||
Transportation | 6.1 | |||
Interest obligations | 14 | |||
Lease liability | 1.6 | |||
Decommissioning liability | 20.2 | |||
Total | 41.9 | |||
2027 [member] | ||||
Disclosure of commitments and contingencies [line items] | ||||
Long-term debt | [1] | 117.4 | ||
Transportation | 4.6 | |||
Interest obligations | 14 | |||
Lease liability | 1.3 | |||
Decommissioning liability | 18.7 | |||
Total | 156 | |||
2028 [member] | ||||
Disclosure of commitments and contingencies [line items] | ||||
Transportation | 3.7 | |||
Lease liability | 0.7 | |||
Decommissioning liability | 17.4 | |||
Total | 21.8 | |||
Thereafter [member] | ||||
Disclosure of commitments and contingencies [line items] | ||||
Transportation | 7.8 | |||
Lease liability | 4.8 | |||
Decommissioning liability | 71 | |||
Total | $ 83.6 | |||
[1] The 2025 figure includes our syndicated credit facility which has a term-out date of May 2025 . The 2027 figure includes our senior unsecured notes due in July 2027 . Refer to Note 5 for further details. Historically, the Company has successfully renewed its syndicated credit facility. |
Commitments and contingencies_2
Commitments and contingencies - Summary of Certain Payments Over the Next Five Years (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2023 | |
Senior Unsecured Notes [Member] | |
Disclosure of commitments and contingencies [line items] | |
Borrowings maturity month year | 2027-07 |
Syndicated Credit Facility [member] | |
Disclosure of commitments and contingencies [line items] | |
Credit facility term out date | 2025-05 |
Commitments and contingencies_3
Commitments and contingencies - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Commitment And Contingencies [abstract] | |
Office lease, expiration date | Jan. 31, 2025 |
Related-party transactions - Su
Related-party transactions - Summary of Compensation of Key Management Personnel (Detail) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Disclosure of transactions between related parties [line items] | |||
Salary and employee benefits | $ 3.2 | $ 4.2 | |
Termination benefits | 0 | 0.9 | |
Share-based payments | [1] | 9 | 18.1 |
Key Management Personnel Compensation | $ 12.2 | $ 23.2 | |
[1] Includes changes in the fair value of PSUs, DSUs and non-cash charges related to the Option Plan and RSUs outstanding under the RPSU plan (equity method) for key management personnel. |
Supplemental Items - Additional
Supplemental Items - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating expense [member] | ||
Supplemental Information [line items] | ||
Employee compensation costs | $ 15.9 | $ 14.2 |
General and administrative expense [member] | ||
Supplemental Information [line items] | ||
Employee compensation costs | $ 24.7 | $ 20.8 |
Government grants - Additional
Government grants - Additional Information (Detail) - Alberta Site Rehabilitation Program [Member] - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Government Grants [Line Items] | ||
Repayment of net grants | $ 0.4 | |
Grants utilized | $ 15.7 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of non-adjusting events after reporting period [line items] | ||
Assets | $ 2,250.4 | $ 2,204.3 |
Supplementary Oil and Gas Inf_3
Supplementary Oil and Gas Information - (Unaudited) - Net Proved Oil and Natural Gas Reserves (Detail) | 12 Months Ended | |
Dec. 31, 2023 MMBbls Bcf | Dec. 31, 2022 Bcf MMBbls | |
Light and medium crude oil [member] | ||
Reserve Quantities [Line Items] | ||
Beginning balance | 50 | 52 |
Extensions & Discoveries | 2 | 5 |
Improved Recovery & Infill Drilling | 1 | 2 |
Technical Revisions | 3 | (4) |
Acquisitions | 0 | 0 |
Dispositions | 0 | 0 |
Production | (5) | (4) |
Change for the year | 1 | (2) |
Ending balance | 51 | 50 |
Developed | 30 | 28 |
Undeveloped | 21 | 22 |
Heavy crude oil and bitumen [member] | ||
Reserve Quantities [Line Items] | ||
Beginning balance | 9 | 10 |
Extensions & Discoveries | 4 | 1 |
Improved Recovery & Infill Drilling | 0 | 0 |
Technical Revisions | 1 | 0 |
Acquisitions | 0 | 0 |
Dispositions | 0 | 0 |
Production | (2) | (2) |
Change for the year | 3 | (1) |
Ending balance | 12 | 9 |
Developed | 9 | 7 |
Undeveloped | 4 | 2 |
Natural gas [member] | ||
Reserve Quantities [Line Items] | ||
Beginning balance | Bcf | 272 | 220 |
Extensions & Discoveries | Bcf | 8 | 39 |
Improved Recovery & Infill Drilling | Bcf | 13 | 5 |
Technical Revisions | Bcf | 8 | 31 |
Acquisitions | Bcf | 1 | 0 |
Dispositions | Bcf | 0 | 0 |
Production | Bcf | (24) | (23) |
Change for the year | Bcf | 5 | 52 |
Ending balance | Bcf | 276 | 272 |
Developed | Bcf | 166 | 173 |
Undeveloped | Bcf | 110 | 99 |
Coal bed methane [Member] | ||
Reserve Quantities [Line Items] | ||
Beginning balance | Bcf | 1 | 0 |
Extensions & Discoveries | Bcf | 0 | 0 |
Improved Recovery & Infill Drilling | Bcf | 0 | 1 |
Technical Revisions | Bcf | 0 | 0 |
Acquisitions | Bcf | 0 | 0 |
Dispositions | Bcf | 0 | 0 |
Production | Bcf | 0 | 0 |
Change for the year | Bcf | 0 | 1 |
Ending balance | Bcf | 0 | 1 |
Developed | Bcf | 0 | 1 |
Undeveloped | Bcf | 0 | 0 |
Natural gas liquids [member] | ||
Reserve Quantities [Line Items] | ||
Beginning balance | 10 | 9 |
Extensions & Discoveries | 0 | 1 |
Improved Recovery & Infill Drilling | 0 | 0 |
Technical Revisions | 2 | 1 |
Acquisitions | 0 | 0 |
Dispositions | 0 | 0 |
Production | (1) | (1) |
Change for the year | 1 | 1 |
Ending balance | 11 | 10 |
Developed | 6 | 6 |
Undeveloped | 5 | 4 |
Barrels of oil equivalent [member] | ||
Reserve Quantities [Line Items] | ||
Beginning balance | 115 | 108 |
Extensions & Discoveries | 7 | 13 |
Improved Recovery & Infill Drilling | 4 | 3 |
Technical Revisions | 7 | 2 |
Acquisitions | 0 | 0 |
Dispositions | 0 | 0 |
Production | (12) | (11) |
Change for the year | 6 | 7 |
Ending balance | 121 | 115 |
Developed | 73 | 71 |
Undeveloped | 48 | 44 |
Supplementary Oil and Gas Inf_4
Supplementary Oil and Gas Information - (Unaudited) - Capitalized Costs (Detail) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Capitalized Costs Relating To Oil and Gas Producing Activities By Geographic Area [line items] | ||
Proved oil and gas properties | $ 11,044.6 | $ 10,754.3 |
Unproved oil and gas properties | 0 | 0 |
Total capitalized costs | 11,044.6 | 10,754.3 |
Accumulated depletion and depreciation | (9,110.3) | (8,902.8) |
Net capitalized costs | $ 1,934.3 | $ 1,851.5 |
Supplementary Oil and Gas Inf_5
Supplementary Oil and Gas Information - (Unaudited) - Costs Incurred (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Costs Incurred Oil And Gas Property Acquisition Exploration And Development Activities [line items] | ||
Proved oil and gas properties - acquisitions | $ 0.6 | $ 4.6 |
Proved oil and gas properties - dispositions | 0 | 0 |
Unproved oil and gas properties | 4.7 | 0 |
Exploration costs | 0 | 0 |
Development costs | 286 | 313.9 |
Capital expenditures | 290.3 | 402.1 |
Change in decommissioning liability estimate | $ (1) | $ 83.6 |
Supplementary Oil and Gas Inf_6
Supplementary Oil and Gas Information - (Unaudited) - Additional Information (Detail) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 bbl | Dec. 31, 2023 Well Wells | |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||
Discounted future net cash flows, annual discount factor | 10% | |
Peace River Willesden Green Pembina Cardium and Viking Areas [Member] | ||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||
Number of wells brought on production, net | Well | 60.3 | |
Number of wells brought on production, gross | Wells | 70 | |
Number of wells drilled, gross | Wells | 77 | |
Number of wells drilled, net | Well | 65.1 | |
Decrease in oil price due to concern over growth of global economy | bbl | 70 |
Supplementary Oil and Gas Inf_7
Supplementary Oil and Gas Information - (Unaudited) - Standardized Measure of Discounted Future Net Cash Flows (Detail) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||
Future cash inflows | $ 8,324 | $ 10,679 | |
Future production costs | (3,549) | (4,150) | |
Future development/ abandonment costs | (1,461) | (1,379) | |
Undiscounted pre-tax cash flows | 3,314 | 5,149 | |
Deferred income taxes | (272) | (577) | |
Future net cash flows | 3,042 | 4,573 | |
Less 10% annual discount factor | (1,187) | (1,819) | |
Standardized measure of discounted future net cash flows | $ 1,855 | $ 2,754 | $ 1,430 |
Supplementary Oil and Gas Inf_8
Supplementary Oil and Gas Information - (Unaudited) - Standardized Measure of Discounted Future Net Cash Flow Changes (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||
Standardized measure of discounted future net cash flows at beginning of year | $ 2,754 | $ 1,430 |
Oil and gas sales during period net of production costs and royalties | (417) | (564) |
Changes due to prices | (1,009) | 1,296 |
Actual development costs during the period | 291 | 314 |
Changes in forecast development costs | (74) | (81) |
Changes resulting from extensions, infills and improved recovery | 127 | 601 |
Changes resulting from discoveries | 0 | 0 |
Changes resulting from acquisitions of reserves | 0 | 0 |
Changes resulting from dispositions of reserves | 0 | 0 |
Accretion of discount | 249 | 122 |
Net change in income tax | 123 | (200) |
Changes resulting from other changes and technical reserves revisions plus effects on timing | 101 | (185) |
All other changes | (290) | 20 |
Standardized measure of discounted future net cash flows at end of year | $ 1,855 | $ 2,754 |