Obsidian Energy’s Rebirth – How Did It Come By?

On the 26th of June 2017, Obsidian Energy Ltd came to be. Its name changed from Penn West Petroleum. Other than having a name change, the stock symbol was replaced with “OBE” on both the New York Stock Exchange and the Toronto Stock Exchange. These changes however did not require the stakeholders to make any changes with respect to the change.

 

According to David French, who is the President and Chief Executive Officer, the name change was a final step in the transformation that started a new chapter in their story. This new chapter bases the company on three principles; transparent and accountable efforts with partners, shareholders and the communities that they operate in; disciplined commercial and technical decision making that will not only build but also protect enterprise value; continuously pursuing innovation and progress. Obsidian Energy definitely is positioned well with the right assets, a prudent hedging strategy and a healthy balance sheet. This puts the company in a unique position to set a standard for performance in both high and low-price environments.

 

Other than the being a part of the name change, shareholders were involved in the process of approving all resolutions that were outlined.

 

Obsidian Energy was previously known as Penn West Exploration Limited, Penn West Energy Trust and Penn West Petroleum. It’s an intermediate-sized Canadian natural gas and oil production company that is based in Calgary, Alberta. Its portfolio is well-balanced with high quality assets producing an average of 30000 boe daily. Obsidian is committed to providing the right platform and delivering bottom-line results. The revamping brought with it a refocus on evolving and succeeding in the industry.

 

The President and CEO David L. French joined Obsidian Energy towards the end of 2016. Before assuming his position at the company, he was the President and CEO of Bankers Petroleum Ltd., which is a publicly –traded oil and gas company based in Calgary with has operations in Southeastern Europe. The rest of the management team consisting of David Hendry, Tony Berthelet, Andrew Sweerts and Mark Hodgson are working together to ensure that Obsidian Energy reclaims all the glory it is due.

 

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

The Emergence of Obsidian Energy

The oil and gas industry is a highly competitive component of the global economy and companies can find themselves in a serious profit margin decline when cash flow minimizes. Many times, corporations with these types of problems eventually must close the doors on the operation. But, some corporations are actually positioned to make a return or morph into a new entity with a new direction and corporate mission. That is exactly what happened to Penn West Oil of Canada, an energy company that found themselves in a bad financial situation over the past decade. Today what once was Penn West is now named Obsidian Energy, complete with a new energy focus on how the company will conduct business going forward.

 

Penn West Petroleum was once upon a time a company with a clearly imbalanced financial statement. They were heavily over-leveraged with debt with input revenue that could not sustain the former operating model. It was obvious to the shareholders that changes must be made in order to protect their investments, and that is exactly what happened. The transition has now progressed to renaming the company Obsidian Energy after wholesale changes within the upper-level corporate management team. Obsidian brought in some new young talent such as new CEO David French, who has significant experience in the energy industry, and began the process that has resulted in a leaner corporate structure and a stable balance sheet. Get More Information Here.

 

The new management staff at Obsidian immediately set out on reducing debt by selling off as many corporate assets as possible and applying those proceeds to reducing liabilities. At the same time, they reduced the number of company employees and production was focused on four specific high-yield segments of the company business that indicated solid promise of future growth. They previously were offering over 30 different products. That is exactly where Obsidian Energy sits today. The legacy issues associated with Penn West are now settled as the company has also built significant cash flows high enough that the company can continue production using on-hand capital instead of reverting to the borrowing cycle that Penn West had found themselves utilizing just a few years ago.

 

See Also: https://beta.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/penn-west-shareholders-approve-name-change-to-obsidian-energy/article35463586/?ref=http://www.theglobeandmail.com&

Gregory Aziz, National Steel Car: ‘Carry That Weight’

Gregory (“Greg”) James Aziz was born on April 30, 1939, in London, Ontario in Canada. He is a businessman who knows about American freight and passenger carriers. Aziz is currently the president, chairman and chief executive officer (CEO) of National Steel Car.

National Steel Car is a company focused the engineering and manufacturing of railroad freight cars. It is headquartered in Hamilton, Ontario in Canada. The business is well known in the industry.

 

Not much is publicly known about Aziz’ family background. He did, however, follow up his secondary education with college. He went to Ridley College.

 

He also attended the University of Western Ontario. There he majored in Economics. Following graduation in 1971, he took a job with the Affiliated Foods Company. Launched in 1968, AFC sells wholesale groceries and is presently one of the major importers of fresh food. The business imports goods from Central America, Europe, and South America.

 

Sometime In the late 1980’s Aziz relocated to New York. There he was employed as an investment banker. By 1994 he was able to garner great wealth.

 

He purchased National Steel Car from Dofasco. His main objective was to make his newly acquired company the leading railroad freight car manufacturer in all of North America. He would make the company famous.

 

The business’ engineering capabilities truly blossomed under Aziz’ leadership. He put most of his money into human resources and ramping up the company’s manufacturing capabilities. As the 1990s closed, the business was manufacturing 8,500 more cars than when he purchased National Steel Car.

 

Aziz has a reputation as someone who strives for perfection. Thanks to his efforts, National Steel Car has received a number of different awards throughout the years. National Steel Car is reported to be the only railcar company in North America to have ISO certification. Since 1996 the business has been awarded the TTX SECO highest quality annual award.

 

Despite some of the futuristic ideas now employed by National Steel Car, Aziz and company still remain true to such time-honored values as maintaining good relationships with suppliers, remaining loyal to their customers and acknowledging the value of the venture’s 2000-plus employees who construct the high-quality rail cars that the business prides. See This Page for more.

 

Aziz and National Steel Car are also involved in their community. Aziz and NSC sponsor a number of community-based projects and charity efforts. They give to such organizations as Theater Aquarius, the Hamilton Opera, and the Salvation Army.

 

View Source: https://www.bloomberg.com/research/stocks/private/person.asp?personId=39124620&privcapId=35787198