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Obsidian Energy Starts Fresh With a New Name and Structure

Formerly Penn West Petroleum Ltd., Obsidian Energy is a public owned oil and natural gas company that is based in Canada, where the oil fields it obtains its products from are located. While the company is several years old, it is newly named after undergoing several changes and restructuring in order to keep the company open.

 

The oil and gas industry are one of the largest growing, but rockiest industries in the world right now mostly due to ever changing policies and market prices which fall and rise without warning. Obsidian Energy fell to the drop-in prices, requiring the company to quickly and swiftly sell off its assets in order to continue operating and stay open. This led to a restructuring, and finally ended with the company making a new start and establishing a new name to go with the new business.

 

 

While the company is still afloat and producing enough oil to turn a profit, it has had to take additional measures to ensure that it remains profitable while it continues to build assets and capital that were lost in the past. Obsidian still has several subsidiaries including Canetic Resources Trust, Endev Resources Partnership, and Sifton Energy Inc.Currently the company is smaller than it has ever been, and it is no longer paying out to shareholders. Currently, the company has approximately 300 employees on staff. Go To This Page to learn more.

 

 

The new management feels that the current business model, cuts that have been made, and operating with minimal overhead costs is going to create a stronger company that is able to withstand any and all future changes. The company is open, more transparent, and holding itself accountable to its shareholders. Obsidian Energy is sure to regain its status as one of the top companies in the country in no time, as long as it continues to operate under the current structure. Even with the drop in crude oil prices, it is even possible that the company can set a record for a new peak production and profit in the next few years.

 

See Also: http://calgaryherald.com/business/energy/restructured-penn-west-proposes-name-change-to-obsidian-energy

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This entry was posted on January 31, 2018 by .