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.
Find Related Information Here.
Read More: https://www.bloomberg.com/quote/OBE:CN
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&