On 26th June 2017, Penn West Petroleum Limited changed its name to Obsidian Energy. The name change was approved by 92% of the voting group. The stakeholders of the company had been waiting to exhale for a long time after Penn West Petroleum Limited had undergone some torrential times. Rebranding was certainly a brilliant idea, hence the reason for a high number opting for it.
Overcoming Hard Past
Significant changes led to the redefinition of what was once one of the sixty largest companies on the Toronto Stock Exchange. Penn West reached peak capitalization of US $9.5 Billion in 2008. The company underwent financial difficulties in 2014 when crude oil prices fell. Obsidian Energy has re-emerged stronger, leaner and more capable to weather storms. As Obsidian Energy, the future is full of promise. Having braved such difficult economic times, the company has what it takes to see better days ahead.
Getting Better and Stronger
Obsidian Energy is now a mid-sized Canadian oil and natural gas company with a capacity of about 30,000 BOE per day. It has scaled down to approximately 500 employees from thousands. Production is drilled from three areas in Alberta: Pembina Cardium, Peace River Oil Sands, and Alberta Viking. The company has a robust hedge book and excellent downside protection. With high-quality assets and relentless passion, the company strives to keep the forward carried debt under control with operations being funded from within the company. Obsidian Energy is resolutely driven by the need to be accountable to all company stakeholders.
Onwards and Upwards
Obsidian is a naturally volcanic glass that can be sharpened and honed. The company has shown its potential to be crafted to survive under whatever economic conditions. The third quarter of 2017, Obsidian Energy reported exceptional liquid yields and revenues. It is estimated that there will be 5% growth in 2018 with an investment of only 80% of funds. A budget of 135 Million Canadian Dollars was approved to solidify the company’s future further. The company can flexibly adjust to the shaky oil market prices.