Penn West Acquires A New Name

There are very many companies in the modern market that have been specializing in the energy market. This is because the sector is believed to be profitable, especially when the leaders have all the knowledge required to survive the tough economic times. For several decades, only the wealthy individuals in the society have been investing in this industry because of the amount of capital that is needed. The few consumers who invest in this area make a lot of money. Sometimes, however, these investors can make huge losses, especially when there is a significant drop in the prices of fuel and oil. The only people who can survive in the complicated market are those that have a lot of expertise in the energy markets —  among them is Obsidian Energy.

 

Obsidian Energy, formerly known as Penn West, is a well-known energy company that has been making headlines in the modern times. The energy company has been operational for a while now, and it is slowly earning the trust of consumers in the world because of the quality of services it has been offering the customers. The institution is currently considered to be among the fastest growing energy companies that are found in the United States at the moment. Getting to the top position in the complicated industry has been a complex and painful journey for the firm. The leadership of the firm has been dedicated to making sure that the investors and consumers never get a chance to complain about the quality of services they get from the firm. These leaders have all the knowledge that is available in the energy world, and this has made them experts when it comes to making any complex decisions in the market. The investors in the firm have nothing to worry about because their investment is always in the right hands.

 

Although Obsidian has been very successful, it has to deal with numerous challenges. Because the management is only focused on delivering the best services to the consumers, the company has remained unmoved by these challenges. Just recently, the institution announced that it would be changing its name. According to the firm, the institution will be operating under the name of Obsidian Energy. The new name will be used in less than five working days. Investors will not be affected by the change of name in any way.

 

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Source: https://www.obsidianenergy.com/

The Rise of Obsidian Energy Company

It is a company which is based in Canada. It was previously known as Penn West Exploration Ltd. The company focusses in production of oil and natural gases. The company has been doing well for a long time not until in the year 2014 when it received financial difficulty. The financial difficult was as a result of falling in the price of the oil. The company experienced difficulty to a point where some of the assets were sold.

 

 

However, the company underwent some changes in the pursuit of reforming. That is when the company was renamed to Obsidian Energy Petroleum to pursue modest growth. The management knew very well that the extension would not come automatically and they recognized that extra efforts need to be put in place. All the reforms were to ensure that there was consistency in growth for the next three years. After the resolution, 92 percent of the shareholders voted in favor of the decision. According to Dave French who is the CEO, the company chose the name because the Obsidian is a naturally occurring company.

 

 

After some years of hard work and dedication, Obsidian was able to survive enormous debts. The assets were sold, and the company was able to reduce its debt to $384 million. All the focus was in sharpening the of the vital production sectors. The other thing that was done to deal with the crisis is to reduce the number of the employees. Apparently, the company is based on discipline, relentless passion for the work. Obsidian has several subsidiaries including Canetic Resources Trust, Endev Resources Partnership, and Sifton Energy Inc. Currently, the company has approximately 300 employees on staff.

 

 

The shareholders must be accountable to nay activities that take pave in the company. This is the secret that has made Obsidian Energy to emerge stronger despite the challenges that were experienced in the previous years. Every company has some goals set aside and every other worker needs to work towards the realization of the goals. All the assets are strategically placed and there are able to provide a platform for the growth and deliver services to the clients. It is a clever way employed by the company to ensure that they achieve their goals.

 

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Obsidian Energy – The Oil and Natural Gas Company

Obsidian Energy Limited (previously known as the Penn West Energy Trust, Penn West Petroleum, as well as the Penn West Exploration Ltd.) is a mid-sized Canadian company for that specialize in the production of oil and natural gas. The company is based in Calgary city, in Alberta, Canada.

 

For a while, when Obsidian Energy Ltd. was among the S&P/TSX 60 index, the 60 largest companies that were listed Toronto Stock Exchange. From the year 2005 to 2011, it was a CANROY (Canadian Royalty Trust), and it managed to reach a peak market capitalization which was on Jan. 2008 of roughly USD 9.5 billion.

 

The oil and gas fields of Obsidian are situated in Alberta, at the WCSB (Western Canadian Sedimentary Basin), which is a region that is among the largest petroleum reserves in the world. Production comes from the three main areas in Alberta: The Alberta Viking, Peace River oil sands, as well as the Pembina Cardium. The total production in the year 2017 is anticipated to average roughly 31,000 bbl. equivalent each day.

 

According to the article in the BOE Report, the Penn West Petroleum announced that their shareholders had changed its brand name to Obsidian Energy Ltd. on 26 June 2017. In conjunction with their name changing, their stock symbol was replaced with OBE on the New York Stock Exchange and Toronto Stock Exchange.

 

David French, the Chief Executive Officer, and President commented that they were pleased to acknowledge the last step in their transformation with the change of the company’s name to Obsidian Energy.

 

As Obsidian Energy started a new chapter in their story, they are going to guide their three principles. These principles are disciplined technical plus commercial decision-making to build as well as protect the value of the enterprise, relentless pursuit of innovation and progress, and accountable as well as transparent efforts with their partners, shareholders, plus the communities in which the company operates.

 

David continued saying that Obsidian Energy Ltd. is positioned well with a healthy balance sheet, the right assets, as well as a reasonable hedging strategy that is going to allow Obsidian to be capable of setting a standard for performance and this is even in environments that are a lower price. Go Here To Learn More.

Obsidian Energy Has Restructured Its Business Model

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.

 

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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.

 

Read More: https://en.wikipedia.org/wiki/Obsidian_Energy