Obsidian Energy Limited is based on discipline, resolute accountability to partners, shareholders and to the local communities. This is an intermediate-sized producer of gas and oil producing about 30,000 barrels of oil equivalent (boe) per day backed by a well-balanced portfolio of assets.
In June this year, shareholders passed a resolution to change the name to Obsidian Energy Ltd from Penn West. According to the CEO, Dave French, the company opted for this name as it represents volcanic glass that is naturally occurring, and which can “sharpened and honed.” As significant changes were felt throughout the organization, this has redefined the Company and its future outlook.
As Obsidian begins a new chapter, it is hoped that the new changes will guide the Company along 3-principles:
Disciplined decision-making towards building and protecting enterprise value.
- Continued pursuit of innovation and progress.
- Transparent and accountable efforts.
The corporate name change from Penn West Petroleum comes after the Company survived a commodity price crash, a potentially damaging accounting scandal, and a severe debt crisis. The scandal had led to class-action lawsuits which were only settled in 2015.
Obsidian initiated several asset sales allowing the Company to cut the net debt witnessed at the close of 2013 of nearly $3 billion to $384 million by close of March 2017.
According to David French, President and CEO, the company has a healthy balance sheet, the right assets, and a well-thought-out hedging strategy allowing it to set a performance standard even when operating in lower price market environments. Go To This Page for more information.
Obsidian Energy Limited is now a comparatively big enterprise with production of about 28,000-30,000 boe per day this year, down from the 2013 figure of 135,000 barrels of oil per day. As at the close of 2016, the Company listed 407 employees against the 1,415-figure recorded 3-years earlier.
Over the coming 3 years, the Company plans on pursuing modest growth with their budgets tightly linked to gas and oil prices. With the latest name change and tight financial measures, Obsidian Energy has reemerged learner, stronger and more capable than it was ever before. The company was at the apex of its success and was even among the sixty most prominent firms in the Toronto stock Exchange and was also a Canadian Royalty Trust (CANROY).