The Obsidian Energy Company remained Penn West Exploration Limited until 26 June this year when it changed its name after lengthy consultation and approval by the shareholders. It is a mid-sized company with Canadian roots which exclusively deals with the production of oil and natural gas, and its located in Calgary, Alberta. Its situation was informed by the presence of oil and gas-rich fields. Obsidian’s oil production comes from three key areas in Alberta: the Alberta Viking, the Pembina Cardium and the Peace River Oil Sands.
As anticipated, this company reached its maximum market capitalization in 2008 when it gradually started declining from an estimate of $9.5 billion. Since then, the company underwent pressing difficulties in operation and financing of its activities when the oil prices dropped by a large margin. Due to this, it opted to restructure by selling most of its assets within the following two years.
To survive the company was compelled to apply several measures including the sale of assets, laying off some workers and cutting a significant level of production. The debt was reduced by such a considerable percentage from $3 billion to $ 384 million just through the sale of assets. It was a significant relief to the company thanks to their decisiveness. On the other hand, around 1100 workers were laid off with the firm retaining only 300 of them. Meanwhile, production got cut from 13500 barrels to 28000 barrels of oil, a day equivalent.
It is now a much manageable company, and since a new president and Chief Executive Officer, David L. French was given the mantle of leadership of the company, everything seems to be moving in the right direction. Obsidian is now in a better position and with the recommended number of assets as well as promising balance sheet.
Obsidian Energy is a very responsible company concerning community health, environmental conservation, and corporate governance. As for community health, it has a culture of communicating openly to its immediate community, acting promptly on issues of concern relating to their operations. As a matter of commitment, they have an email and a toll-free number through which they can get reached in cases of non-emergence questions regarding their services.
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See Also: https://www.bloomberg.com/quote/OBE:CN