A Review Of Obsidian Energy Journey After Rebranding From Penn West Petroleum

Obsidian Energy is a renowned Canadian oil and natural gas production company. The medium-sized company has a well-balanced portfolio of quality assets. The corporation produces nearly 30,000 barrels each day. Obsidian Energy has a high client base, thus enhanced profitability margins. In addition, the noble corporation has recruited the services of experienced personnel who will enable it to succeed in the competitive industry. Moreover, Obsidian Energy’s success is anchored on the foundation of discipline and its employee’s relentless passion for the work that they do. This success is also based on an unbendable accountability to their shareholders, partners and the communities that they operate in.

 

Previously, the company was known as Penn West Petroleum Ltd. On June 26th, 2017, the company formally changed its business name to Obsidian Energy. As Penn West, the company underwent considerable changes. These changes affected every area of their business. Moreover, the changes helped the management to redefine the company in terms of where and how it grows. As a result, Obsidian Energy has reemerged leaner, stronger and more capable than it has ever been.

 

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The change of name has been accompanied by improvement in their business operations.

David French, the company’s president and CEO noted that they were pleased to recognize the final step in their transformation journey with the name change. He also added that as they begin the new chapter, they will lead the company based on three principles, which are disciplined commercial and technical decision making, relentless pursuit of progress, and accountability. Presently, Obsidian Energy is well positioned with the appropriate assets, a strong balance sheet, and sensible hedging strategy that will help them to set a performance standard even in lower price situations. Apart from the name change, the company’s shareholders approved the entire resolutions outlined in the Notice of 2017 Annual and Special Meeting and the Management Proxy Circular of April 30, 2017.

 

The company’s oil and gas fields are found in Alberta, which is along the Western Canadian Sedimentary Basin. The region is among the leading petroleum reserves in the world. In Alberta, oil and gas production comes from three main areas, which are the Peace River oil sands, the Alberta Viking, and the Pembina Cardium.

 

Related: https://en.wikipedia.org/wiki/Obsidian_Energy

Obsidian Energy Strategies for Getting Back Up

Obsidian energy ltd deals natural gas and also oil. The company is currently located in Canada at a place called Calgary, Alberta. The company has employed individuals of around 300 as per 2017. Its original name was Penn west exploration limited. The company’s market value reached its best in 2008 with a value of $ 9.5 billion. Their main explorations sites include Alberta Viking, Pembina Cardium, and Peace River oil sands.

 

However, Obsidian Energy has also had also experienced its low period. The company had accumulated various debts together with some difficulties in operations. This trying time was mainly brought by reduction of the prices of crude oil globally in 2014. This forced the company to let go some of its assets to remain afloat. This was also followed by a change in the marketing strategies.

 

Some of the strategies included changing the name with a new symbol of “OBE” that was to be used in the stock exchange market of New York and Toronto. Three principals were set to steer the company forward. Obsidian Energy wanted to instill discipline in operations while ensuring that everyone plays their role to ensure the company achieves its mandates and remains a global player. Transparency and accountability are also the key areas that they look forward to working on.

 

To achieve its mandates, Obsidian provides excellent record keeping of all its spending together with hedging plan. This will ensure the company remains on top even when the oil prices go down again in the future. The main reason for this is to ensure the safety of the investors’ money.

 

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In addition to the change in name, there were also some proposals that were approved, for example, the appointment of Ernst and Young LLp to become the auditors of the company. The two are chartered and certified accountants. Their primary purpose is to provide full accountability on all the spending in the business. New directors were also elected which consisted of eight members. Other changes also include the reduction of employees and the number of oil barrels produced per day. This, however, has affected even the income of the company which has witnessed a steady decrease. With the measures taken by Obsidian Energy, it may not be long before Obsidian Energy rises again.

Visit: http://calgaryherald.com/business/energy/restructured-penn-west-proposes-name-change-to-obsidian-energy