Penn West Energy Trust Changes Its Name to Obsidian Energy Limited
Obsidian Energy Limited is a mid-sized Canadian natural gas and oil manufacturing company located in Calgary, Alberta. Previously, it was known as Penn West Exploration Ltd, Penn West Energy Trust, and Penn West Petroleum. Its shareholders voted 92% for a name change to Obsidian Energy Ltd. In the past 2-4 years, the company had survived an accounting scandal and high debts, which resulted in the selling of assets to settle the debts. New York Stock Exchange and Toronto Stock Exchange thus had to change the company’s stock symbol to OBE. Before changing its name, it was one of the companies in the Toronto Stock Exchange, and since 2005-2011 it was known to be a Canadian Royalty Trust. In 2008, it reached the highest market capitalization of around 9.5 billion dollars.
David French, the CEO of Obsidian Energy Ltd said currently the company is small whereby it produces 28,000 barrels of oil each day and has 407 employees. He also stated that the shareholders took a good step to change the company’s name for them to start a new beginning. He believes they can run the Obsidian with disciplined commercial and technical decision making, transparent, and accountable efforts with communities, partners, and shareholders and being strict in pursuing innovation and progress of the company.
The company has better plans for lower price environments. Currently, it has the best balance sheet and the required assets. Also, they have made better strategies that will enable Obsidian Energy to grow for at least the next three years whereby spending budgets will be controlled by the gas and oil prices. The team members of the organization are also willing and ready to provide better bottom-line results and to have business minds that will enable them to succeed in the competitive industry.
After changing the company name on June 26th, 2017, more changes were done in the company that affected its operations. On the other hand, the changes will enable Obsidian Energy to learn from them and grow steadily. Obsidian Energy’s new beginning has allowed each employee and shareholder to come out stronger than before to ensure the company becomes one of the leading companies in the industry.