Obsidian Energy Ltd. is a middle-sized Canadian-based oil and natural gas production firm. It is based in Calgary, Alberta, and was previously known as Penn West Energy Trust, Penn West Petroleum, and Penn West Exploration Ltd. The name change took place in June 2017 as the last step in their transformation.
Obsidian Energy officially began a new chapter in their long and illustrious history where they will guide the company on three principals:
Disciplined, commercial, and technical decision making. This will help build and protect the enterprise value.
A relentless pursuit of innovation and progress.
Transparent and accountable efforts with partners, shareholders, and communities in which they operate.
David French, the President and Chief Executive Officer, stated that due to Obsidian Energy’s strategic positioning with the right assets, a prudent hedging strategy and a healthy balance sheet, the company is well within its means to set a standard for performance even in environments that are lower priced.
Obsidian Energy wants to be nothing like the old “Penn West.” Having survived high debt levels as well as an accounting scandal, coming out from of the four-year rollercoaster deserved a fresh start. The lawsuits that were brought about by the accounting scandal were all settled last year, and the net debt was reduced to $384-millioin as of March 31, 2017, compared to the outstanding $3-billion that would have crippled the company in 2013. The asset sales allowed for the debt reduction as well as sharpening its focus to four key production areas, down from 30. Employee count reduced from 1400 to 300. In that same period, the production received a huge cut from 135000 barrels to 28000 barrels. Get More Info Here to learn more about the company.
The future is bright for Obsidian Energy. Tough decisions had to be made. Obsidian Energy is set to regain its former glory without the scandals that graced Penn.