Why Obsidian Energy Changed Its Name

Obsidian Energy Ltd. is an Alberta, Canada firm that recently went through a name change. They had been called Penn West Petroleum Ltd. for many years and on June 26, 2017, they announced that their shareholders had approved of the name change. They are a publicly traded company and also changed the stock ticker under which they trade to OBE on both the New York Stock Exchange and the Toronto Stock Exchange.

This company has gone through a transformational period over the past year. They are a company in the oil industry and as the value of a barrel of oil tanked many companies like them had extreme difficulties keeping the doors open. They laid off many employees and shut down operations on their field operations that weren’t profitable enough to continue working on.

For this new chapter of Obsidian Energy, they have three new principles under which they will operate. First, they will protect enterprise value by focusing on technical and commercial decisions that will take a disciplined approach. Second, they will always pursue innovation and productive progress. Finally, they pledge that they will be transparent and accountable for their actions to their shareholder, partners, and the broader community.

As part of these changes, Obsidian now has a new chief executive officer. David L. French took over before the name change of the company and he introduced sweeping changes to improve the company and reorient it to be the right size. They now have balance sheet that has been deemed as healthy and they also have in place a comprehensive hedging strategy so that they can meet the long-term goals of the company.

Obsidian Energy is based in the city of Calgary. They have both oil and gas wells that they operate across Western Canada. This area has shown that it contains some of the largest proven petroleum reserves in the world. They have three main areas that they have operations in which are the Alberta Viking, Pembina Cardium, and the Peace River oil sands. They now employed 300 people between their headquarters and field operations.

 

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