Obsidian Energy is a Canadian oil and gas producer. The publicly traded energy firm, previously named Penn West Petroleum, was founded in 1979 and is based in Calgary, Canada. It has vast interests in western Canada. The firm’s revised oil production strategy averages thirty thousand barrels per day. David French is serving as the President and CEO of the company since 2016. The mid-size producer is uniquely positioned for success in the dynamic industry with high-quality assets.
The recent name change was precipitated by unprecedented changes in the firm’s operations as well as policy reforms in the oil industry in Canada. The company has recovered from a financial crisis. It has also emerged on the positive side of the fluctuations and decline in commodity prices that has hit the oil segment in recent years. In similar fashion, the firm has cut down its debt by well over seven-fold in the last three years. Read More On This Page.
Obsidian Energy is a leaner outfit with less financial baggage. Similarly, the company has downgraded its production forecast after also announcing a cut in the workforce. While the new outfit is considered a modest version of the old firm, it is expected to be more efficient in terms of decision-making and operational flexibility.
Obsidian Energy operates oil and gas wells in Peace River, Cardium and Alberta Viking in the western region of the country. The company’s shares are publicly traded under new monikers on both the Toronto Exchange as well as the New York Stock Exchange. The name change and consequent corporate restructuring signals a new chapter in the oil producer’s operations.
It hopes to streamline technical and commercial aspects of the business to ensure value. The Obsidian will leverage technology to achieve innovative growth and strengthen relationships with shareholders. It also targets to increase strategic collaborations with partners and stamp a bigger footprint on the local community.
At an extraordinary shareholders’ gathering earlier in the year, Obsidian Energy outlined key changes and resolutions. The shareholders approved the revised executive compensation policy including stock options. In addition, the shareholders approved the name change, the proposed restructuring of the firm’s share capital as well as revisions to capital expenditure.