Obsidian Energy: The Oil And Natural Gas Company Without Limits

Obsidian Energy is a Canadian-based public firm that deals in the production of oil and natural gas. It’s headquartered in Calgary, Alberta. It was formerly called Penn West Exploration. The company name was changed to Obsidian Energy on 26th June 2017.

 

Obsidian has oil and gas wells throughout western Canada specifically in Alberta along with Western Canadian Sedimentary Basin, an area that is characterized by its large petroleum reserves. The largest wells are located in the Alberta Viking, the Pembina Cardium, and the Peace River Oil Sands.

 

It is undeniably one of the largest companies that feature on the Toronto Stock Exchange. This is manifested by the fact that between 2005 and 2011, it achieved top market capitalization of approximately US $9.5 billion.

 

Just like every successful company, Obsidian Energy has faced several challenges for instance, in July 2014 the company’s Chief Financial Officer revealed accounting irregularities that had led to the misclassification of nearly $300 million. The company consequently faced several lawsuits from different investors in Canada and one in the United States of America. As a result, Obsidian Energy contracted the services of independent auditors to review its books and solve the accounting issues. Additionally, due to the decline of oil prices, the company was forced to reduce its workforce from 2,350 in 2013 to 300 workers in 2017and suspend paying dividends to its shareholders. It also had to reduce the compensation that it had set aside for its board of directors.

 

However, despite the fact that the company’s journey to success has been faced by these challenges, Obsidian continues to deliver strong production volumes and through the second quarter of 2017, robust funds have been seen to flow from their operations. In fact, the company expects to produce an estimate of 31,000 bbl per day in 2017. Learn More Here.

 

According to a statement by David French, the company’s President and Chief Executive Officer, the company will have a solid start since the company’s financials are balanced and very much stable thus putting them in a good position to manage the environment as currently constituted. He goes on to explain that they will continue to extend their investable projects for the development of Alberta and the intermediate world’s environment.

Learn More: https://en.wikipedia.org/wiki/Obsidian_Energy

Penn West Petroleum Adopts New Identity That Is Obsidian Energy

Obsidian Energy, previously known as Penn West Petroleum Ltd is a Canadian-based oil and natural gas Company. They operate from Calgary, in Alberta and was one of the sixty largest companies at the Toronto Stock Exchange. The company also has changed its stock symbol on both New York Stock Exchange and Toronto Stock Exchange. The company’s oil fields are located along the Western Canadian Sedimentary Basin in Alberta, which is one of the world’s largest petroleum fields.

 

David French, the Company’s President and Chief Executive Officer says the name change is in line with the aim of starting a new chapter. Obsidian Energy will be guided by three principles which are disciplined technical and commercial decision making in building and protecting the value of enterprise, relentless pursuit of innovation, transparent and accountable efforts with the shareholders, partners and the community in which Obsidian Energy operates. The company also seeks to set a new standard for performance even in lower price environments through a healthy balance sheet, prudent hedging strategy since they are well positioned with the right assets.

 

Obsidian Energy’s production areas include Pembina Cardium, the Peace River Oil sands and the Alberta Viking. The company expected its total production for the year 2017 to be approximately 31,000 bbl equivalent per day. Obsidian Energy also looks forward to pursuing modest growth in the next three years. The spending budgets will be tethered to the prices of oil and gas. Changing the company’s name was a unanimous decision of all the shareholders.

 

The shareholders also approved the resolutions in the Notice of 2017 Annual and Special Meeting and Management Proxy Circular. The circular dates back to April 2017 and its details can be found at the company’s website. Visit This Page for additional information on Obsidian.

 

The company has however gone through tremendous changes over the years. It has managed to reduce its net debt from almost $3 billion as of 2013 to about $384 million in March 2017. This was occasioned by the ability of the company to make sales of some of its assets. Obsidian has also managed to cut the large number of employees.

 

More: https://www.bloomberg.com/quote/OBE:CN