Obsidian Energy Ltd. (NYSE:OBE) Q1 2019 Earnings Conference Call Transcript

May 10, 2019 • 10:00 am ET


Obsidian Energy Ltd. (NYSE:OBE) Q1 2019 Earnings Conference Call Transcript


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Good morning. My name is Sheryl, and I will be your conference operator today. At this time, I would like to welcome everyone to the Obsidian Energy 2019 First Quarter Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions) Thank you.

Mr. Kyle Doucet, Corporate Planning and Investor Relations Lead, you may begin your conference.

Kyle Doucet

Good morning, everyone, and thanks for joining with us. This morning, we will be discussing our 2019 first quarter financial and operational results. The format of this call will be audio only.

With me this morning and speaking on the call is Michael Faust, President and Chief Executive Officer; David Hendry, Chief Financial Officer; and Aaron Smith, Senior Vice President of Development and Operations. The rest of the leadership team is also in attendance.

Before I turn over the call to Mike, I'd like to point out that we will refer to the forward-looking information in connection with Obsidian Energy in the subject matter of today's call. By its nature, this information contains forecasts, assumptions and expectations about future outcomes, so we will remind you, it is important to -- we'll remind you, it is subject to the risks and uncertainties affecting every business, including ours.

Please refer to our public disclosure filings available on SEDAR and EDGAR systems for a full discussion of significant factors and risks that could affect Obsidian or could affect the future outcomes for Obsidian Energy. Go ahead, Mike.

Michael J. Faust

Thanks, Kyle. Good morning to everyone on the call, and we certainly appreciate you joining us today. On our year-end conference call, I spoke about our path to creating significant and sustainable shareholder value. This year is starting off on the right foot with strong operational results and increased cash flow versus the previous quarter. In the time since our last call, I've gotten to know our team more in depth, and I can see three areas that I will focus my entire attention towards.

My first priority is maintaining our strong momentum in the Cardium, which continues to yield very strong results, ahead of our expectations. We beat our prerelease production targets set forth in the quarter, and Aaron will discuss that in a few minutes in detail. I certainly intend to keep that focus, ensuring our team resumes development activities with the same attention to safety, focus and vigor following our spring breakup. We'll be constantly looking for ways to improve our performance and deliver the full potential of our Cardium asset.

Secondly, Dave and I are focusing on strengthening our balance sheet by ensuring that we are spending within funds flow from operation and looking for ways to monetize our non-core assets to reduce debt. Lastly, I've asked my team to conduct a very thorough review of our cost structure to identify any and every area in which we can make improvements and ultimately bring down our costs.

This initiative will include