Recently Penn West Petroleum re-branded to Obsidian Energy. The company plans to position itself strategically in the Canadian Market so that it can attract modest growth in the short-term period of close to three years. One of the strategies that the company will employ to ensure that it’s on a profit-making trail is limiting its spending budgets to the prevailing prices of oil and gas.
During a meeting to discuss the change of identity for Penn West Petroleum, 92 percent of the shareholders voted in favor of the new status Obsidian Energy. The inspiration behind the name obsidian came from a naturally occurring volcanic glass called obsidian. The glass has the unusual characteristic that allows it to be sharpened and honed. Dave French, the CEO of the company, expressed his optimism about the future growth of the business.
Over the past few years, Penn West has experienced turmoil in its business with soaring debts threatening the future of the company. However, the company managed to weather all the challenges by settling all its lawsuits last year. To bounce back, Penn West had to liquidate some of its assets so that it could reduce its debt portfolio. The company has also narrowed its business scope to only four critical areas of production from the initial thirty.
Obsidian Energy has also restructured its business model by downsizing the number of employees on its payroll. Obsidian has several subsidiaries including Canetic Resources Trust, Endev Resources Partnership, and Sifton Energy Inc. Initially, the company had 1,400 employees, but at the moment, the number is down to 300.
At the moment Obsidian is ranked as a medium-size oil and gas producer. The firm boasts of a high-quality asset portfolio that has the capacity of churning over 30,000 barrels of oil every day.
Obsidian Energy’s asset base and the organization structure the company has adopted provide the right foundation for the firm to take off. Also, an entrepreneurial culture and the values that have been inculcated by the management enable the business to record bottom-line results.
Obsidian Energy is a firm that is founded on the principles of discipline, passion, and humanity. Most of the employees at the company are relentless in their pursuit for better results for the business. Obsidian’s management and stakeholders believe that the enterprise is a force of change in the communities it operates.