Obsidian energy is a completely new company. Changing its name from Penn West was its final stage of transformation. Like the final coat of paint on a new building. Having survived the financial difficulties, it faced in the past, the shareholders and managers of the company decided to transform it into a better company and a more profitable one. Its transformation into this new face included:
- A change in the board of directors
It’s almost impossible to change the course of a company without changing its decision-making system. It’s either you change the way the decisions are made, or you change the people who make the decisions. The safest bet is to change the people making the decisions.
- An appointment of an auditor
Finances are the most delicate part of a company. Regardless of what the company deals in, the bottom line is they be able to meet the operational costs and make a profit. This is the interest of the owners and the managers. To ensure that all the records that reflect the right numbers, there has to be a trustworthy accountant put to task. Because of this, Obsidian shareholders appointed Ernst & Young LLP, Chartered Accountants to audit their accounts.
- An approval of the restricted share unit plan
- An approval of the reduction of the share capital for account purposes
These are just some of the changes Obsidian Energy underwent to make it new. In addition to all the in-house re-arrangements, they changed their stalk symbol to OBE.
As a result of the changes the company has undergone, they experience a productive year in 2017. By the end of the year, Obsidian production had exceeded the numbers they had projected for the winter program. They produced roughly 700 barrels of oil every day. This sets them up for a good year in 2018.
Obsidian energy has also been able to come up with a portfolio program that is capital efficient. Looking at their peers, their portfolio is the best there is in the market. The changes also have allowed the company to do its operations within its means. This gives confidence in the projections they are making for this year. It also proves that they truly are the company described in their motto; disciplined, relentless and accountable. Go Here for additional information.