Obsidian energy is a midsized company that deals with the production of oil and natural resources. It was formerly known as Penn West Exploration Limited before it was renamed obsidian energy limited following a resolution by shareholders to effect the change with a support of 92 percent on 26th 2017. The name originates from a naturally occurring volcanic glass. It will come with symbol change, which will be replaced by ‘OBE’ on the stock exchange markets.
The company’s headquarters is located in Albert, Calgary, which is in one of the largest petroleum reserves in the world. It has undergone significant restructuring following operational and financial changes over the past few years such as accounting irregularities. Besides, Obsidian Energy, according to its chief executive officer, is to be guided by three principles;
- Disciplined commercial and technical decision making to protect the enterprise value
- Transparent and accountable efforts with partners, shareholders and the community in which they operate
- Steady pursuit of progress and innovation
Obsidian Energy’s oil and natural production company currently have about 300 employees led by David L. French who is the company’s chief executive officer since October. The daily production is about 28, 000 barrels of oil from the previous 135,000. The company has narrowed its production areas from about 30 to four with the aim of increasing its profitability. Obsidian Energy has also managed to reduce its net debt from $3 billion in 2013 to 384 million this year. Obsidian Energy undertook several measures such as selling off assets to manage this debt reduction resulting at the end of the lawsuits and scandals that had characterized the company. It announced $8.5 million reimbursement with the Securities and Exchange Commission in the US. Obsidian Energy also suspended the payment of dividend to the shareholders and also cut down the compensation for the board of directors. Obsidian Energy is expected to perform better if the third quarter results and 2018 budget is anything to be put into consideration. The chief executive officer, David French, promised a bright future of the company during an interview with the Toronto stock exchange noting that the future of Obsidian is bright.
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