OBE Overview

Expert Recommendations: Jim Cramer advises against investing in Fortinet, recommending Palo Alto Networks and CrowdStrike instead, while Morgan Stanley downgraded Fortinet's stock. He also suggests buying Dell Technologies over Super Micro Computer due to ongoing accounting issues.

Market Performance: Fortinet shares rose slightly, while Super Micro Computer shares fell. Marvell Technology reported earnings that beat estimates but missed revenue expectations, leading to a 4.2% increase in its stock price.

U.S. Crude Inventory Decline: U.S. crude inventories have decreased by 3.9 million barrels, despite government efforts to rebuild stockpiles, while domestic energy companies like Prairie Operating Co. are strategically expanding their operations in response to rising AI-driven energy demands.

Industry Developments: Companies such as Ring Energy and Amplify Energy are making strategic moves to enhance operational efficiency and reduce debt, while Matador Resources has expanded its gas processing capacity, indicating a trend of growth and adaptation within the energy sector.

U.S. Stock Market Update: U.S. stock futures are up, with Nasdaq futures increasing by about 1%, while several stocks, including Kanzhun Limited and Upexi, Inc., experienced significant declines in pre-market trading.

Stock Performance Highlights: Kanzhun shares fell 2.7% after announcing a dual listing share offer, while Upexi, Inc. saw a drastic drop of 62.3%. Other notable declines included DeFi Development Corp. down 39.2% and Regencell Bioscience Holdings down 8.8%.

Earnings Announcement: Obsidian Energy is set to release its Q1 earnings results on May 6th, with an expected EPS of $0.30.

Debt Reduction: The company has successfully reduced its debt through the sale of its Pembina assets in a $320 million deal.

Reserve Evaluation Results: Obsidian Energy reported significant increases in its reserves for 2024, achieving 146% replacement on a proved developed producing (PDP) basis, 229% on a proved (1P) basis, and 296% on a proved plus probable (2P) basis, with total reserve values rising substantially across all categories.

Capital Program Efficiency: The company's capital program demonstrated efficiency with lower finding and development costs per barrel of oil equivalent (boe), leading to a notable increase in reserve value metrics and the addition of 107 new locations in the Peace River area.

Production and Growth Expectations: Obsidian Energy reported an estimated average production of approximately 37,450 boe/d for 2024, exceeding guidance and representing a 16% increase from 2023. The company is well-positioned to achieve a target of 50,000 boe/d by 2026, following successful drilling results in new areas.

Operational Updates and Management Changes: The company completed its 2024 capital program with all wells rig released as scheduled, while also announcing the appointment of Jay McGilvary as Vice President of Development to lead subsurface characterization and drilling operations moving forward.