Obsidian energy is a company based in Canada that specializes in the production of oil and gas. The company which was formerly known as Penn West Petroleum Ltd rebranded in June 2017 as part of its growth strategy. This was after a major restructuring that led to its reinvention in all aspects of the business that gave it a fresh start. The critical areas that Obsidian Energy adopted after rebranding included three principles where it incorporated discipline, being transparent to shareholders, and continuous innovations.
Obsidian Energy Company’s Operations
The oil and gas producing company is a medium sized firm that produces an approximate of 30,000 boe daily. It leverages its accountability to its partners, shareholders, and to communities in the region they run the company. Further, Obsidian Company has its oil and gas fields situated along the Western Canadian Sedimentary Basin in Alberta, Canada. The petroleum reserves in that region are said to be among the largest in the world where production is done from three areas known as Alberta Viking, Pembina Cardium, and Peace River Oil Sands.
Moreover, Obsidian Company had previously been hit by a financial and operational crisis in 2014 when the crude oil prices went down. As a result, the company encountered a series of restructuring where it sold most of its assets in the two subsequent years to offset the high debt it had incurred. What’s more, the debt which was almost $3 billion was significantly reduced after the sale of its assets to $384million as at March 2017. Also, with the rebranding of the company saw the stock symbol in both the New York Stock Exchange and Toronto Stock Exchange substituted with the “OBE” symbol.
Nonetheless, with Obsidian reinventing itself saw the brand become more proficient and stronger in its operations. Better still, the company’s president and chief executive officer known as David French stated that Obsidian had a strong balance sheet and was integrating a hedging plan that would see them lower prices. Additionally, with the downsizing of the Penn West Company through the sale of its assets reduced company production from 135,000 in 2013 to 28,000 barrels after it scaled down. See This Page to learn more.