OBSIDIAN ENERGY: THE ARISEN COMPANY
Obsidian energy Ltd is a company in Canada dealing in oil & natural gas and located in Calgary. It was initially known as Penn West Exploration Ltd. It had for a period recognized as one of sixty greatest companies in Toronto Stock Exchange. It had been since 2005 to 2011 been a Canadian royalty trust, and at that time it had gotten to the top of the market capitalization of around US $9.5 billion in 2008.
When the prices of crude oil fell rapidly in 2014, Obsidian went through a lot of difficulties operationally and financially. Due to this, the company had to restructure with most of the assets that were sold more than the following two year to reduce debt. In 2014 at around July, Penn West had an improper classification of expenses of hundreds of millions. It was forced to restate the reports for their finances for the years 2012, 2013 and also for a part of the beginning of 2014.
The disgrace was the reason why investors brought the in class-action proceedings. After that, the company opted to sell assets which made sure that they reduced their great debt from $3 billion to $384 million within a short while.
In 2017, Penn West decided to change its name and to begin a new chapter, approved by the shareholders. In their process to reinvent Obsidian Energy the shareholders decided to apply three principles: Decision-making that is disciplined, commercial and technical to build and also to guard enterprise value. Another policy is to pursue progress and innovation relentlessly, and lastly, Accountability and transparency in efforts with the shareholders and the partners in operation. Not only was there a name change but the shareholders had resolutions that they approved that were stated in the Notice of the Annual and Special Meeting and Management Proxy Circular which took place in April 2017.
Though Obsidian Energy is now a company more petite in size, producing fewer barrels of oil, the CEO and the entire team is optimistic about the new chapter the company has taken. With the new principles and from the lesson learned from its past, it has a clearer future ahead.
Refer To This Page to find more information.