Category: Energy

Obsidian Energy Accomplishments in the Business and History


Obsidian Energy Ltd started operating in 1979 under its first name Penn West Energy Trust. Over the years, the business had changed its name a few times, and as of June 2017, it started calling itself Obsidian Energy. The corporation is a Canadian oil and natural gas business which is based in Calgary, Alberta. The Obsidian Energy Ltd is under the leadership of Mr. David Frech, acting as President and Chief executive officer.

 

With a staff of three hundred people, Obsidian Energy Ltd is a mid-sized company. It sources the natural gas and oil from three locations in Alberta such as the Alberta Viking, Pembina Cardium, and the Oil Sands of Peace River. The primary site, however, is Western Canadian Sedimentary Basin, as this region is known to have some of the most significant petroleum reserves in the world. The production of the corporation reached close to 31 000 BBL equivalent a day in 2017.

 

Over the decades, Obsidian Energy Ltd. has had its fair share of achievements as a business. The company used to be one of sixty strongest firms according to the list of Toronto Stock Exchange. Then, from 2005 up till 2011, Obsidian Energy Ltd. was announced to b a Canadian royalty trust business or CANROY for short. The year of 2008 was exceptionally prosperous for Obsidian Energy Ltd. The company because it achieved a peak capitalization and accomplished a revenue of more than $9 billion.

 

CANROY is a cluster of business which are in the trust as long as they distribute their income among shareholders. CANROY businesses do not have to pay federal taxes because of that but in 2011 that changed. Obsidian Energy Ltd chose to step away from the Canadian royalty trust and become a conventional corporation. Some other companies that were in the Canadian royalty trust include Vermilion Energy, Zargon Energy, Freehold Royalty, NAL Oil and Gas, and a dozen other corporations. Click Here For Related Article.

 

Obsidian Energy Ltd did a restructuring of the business in significant proportion in 2014 after the crude oil prices started decreasing drastically. The company was forced to sell a large part of their assets to reduce the debt and stay above the water.

Read More: https://globalnews.ca/news/3481168/penn-west-proposes-name-change-to-obsidian-energy/

Obsidian Energy Gas And Oil Organization


Obsidian Energy which was previously called Penn West Energy Trust, Penn West Petroleum and Pen West Exploration Ltd. Obsidian Energy is a company that is founded on resolute responsibility to its stakeholders, passionate to the work it does and disciplined. It is a medium Canadian company that deals with natural gas and oil production.

 

 

Obsidian Energy is situated in Calgary in Alberta. It was founded in the year 1979.The Chief Executive officer of this company is called David L.French. He joined the company in October 2016.David Hendry is the Chief Financial Officer in Obsidian Energy. He joined this company in April 2015 as a vice president of Finance.

 

 

For some time, Obsidian was one of the S&P/TSX 60 biggest organizations on the Toronto Stock Exchange. From the year 2005 to the year 2011, Obsdian Energy was a Canadian Royalty Trust. It reached at the top market capitalization in the year 2008 with approximately 9.5 billion US dollars. Get More Info Here.

 

 

Obsidians gas and oil fields are situated In Alberta .Alberta is one of the areas with the world biggest petroleum reserves. Production is done in three major areas in Alberta which are Peace River oil sands, Alberta Viking and Pembina Cardium.

 

 

The company changed its name from Penn West Petroleum Ltd to Obsidian Energy on June 2017.Obsidian Energy has undergone vital changes that have affected every factor of its business. These alterations have made the company to restructure and know where it goes from there. The organization is determined to reduce the impacts of its operations on the surroundings. Its environmental forums focus to exceed and meet all environmental controls, resource conservation and reclamation practices.

 

 

 

Since June 2013 Obsidian started lowering its workforce from 2350 workers to 1000 workers. Due to decrease in oil prices in the year 2015, the company announced cuts of 400 fulltime workers and contractors from the organization Headquarters. In the year 2014, the company stated that hundreds of million dollars in costs had been classified improperly. This forced it to repeat its financial reports for the year 2012, 2013 and quarter of 2014.Obsidian Energy embarked on selling assets that permitted it to lower net debt from 3 billion dollars at the end of the year2013 to 384 million dollars as of March 2017.This company is now a smaller firm with less production of oil and few workers.

Source: http://calgaryherald.com/business/energy/restructured-penn-west-proposes-name-change-to-obsidian-energy

The Role of Obsidian Energy in Canada


Obsidian Energy is an intermediate-sized oil and gas producer company with a well-balanced portfolio. It has got high quality asset that produces about 30,000 boe per day. Obsidian has several subsidiaries including Canetic Resources Trust, Endev Resources Partnership, and Sifton Energy Inc. Currently, the company has approximately 300 employees on staff

 

Formerly, Obsidian Energy was Penn West Petroleum Ltd. It was later changed due to the high number of votes that favored the change of the name.

 

David French, the CEO of the company asked for the approval of the change of the company’s name. Obsidian Energy Company aims at impacting quality products and services by promoting relentless passion for the job the it does, discipline and accountability to its stakeholders, partners and the surrounding community.

 

Objectives

Obsidian Energy is entitled to making a positive impact in the communities in which it operates. The community matter program is what enables them to carry out their operations respectfully and responsibly. This reminds the company and its workers to communicate openly to the area residents and mitigate the effects that can be associated with oil and gas production.

 

Obsidian Energy is equally committed to reducing the effects of its operation to the environment. Its environment program aims at meeting or exceeding all environmental regulations, resource conservation, and reclamation practices. The company has been at the forefront of advocating for sustainable energy production in North America and abroad.

 

Achievements

As of Aug. 9, 2017, when Obsidian Energy announced its second quarter financial operational results, it is evident that

 There has been continued high volumes of production

 Operations funds flow reflects strong sales prices across all products

 The company has really contributed to the welfare of all parts of the United States as it is one of the strongholds of the currently flourishing economic development

 

Find Related Information Here.

 

There are several oil and gas production companies. However, Obsidian Energy stands out as a one of a kind company that not only focuses on production and sales but rather also on ensuring environmental safety for the community in which it operates.

 

Obsidian works keenly in maintaining and building relationships with their external stakeholders. It also provides training and education for its contractors and employees, ensuring they understand and abide by regulation.

 

More On: http://www.marketwatch.com/investing/stock/obe/news

Fueling Economy With Obsidian Energy


Obsidian Energy is a highly ranked Canadian based company that produces natural gas and oil. Being located along western Canadian sedimentary basin one of the world’s largest petroleum reserves, the high end equipped company produces an average of 30000 BOE per day. Before it rebranded to obsidian energy on 26 June 2017, the company was initially known as Penn West Petroleum Company.

 

 

The Company was stricken by crude oil prices fall in 2014, which significantly led to re-establishment and selling of majority of its assets for the following years to reduce its debts. These changes led to a restructuring of the company, based on some new pillars that were meant to make sure it is back to its best. It majored on a constant pursuit of progress, liability, and transparency to the shareholders’ efforts and any other parties they were in business. The company also focused on safeguarding its enterprise value by discipline and decision-making.

 

 

In 2017, the new CEO David French suggested a new name for the company that would no longer sound like the old one and which would relate to a naturally occurring volcanic glass and hence they suggested the word Obsidian.

 

 

Currently, the company operates in three places around Canada; Alberta Viking, Cardium and Peace River, where its vital development assets are situated.

 

 

Obsidian Energy has some responsibilities, which include health and safety community and environment and corporate governance. These responsibilities help the company to mitigate that impacts resulting from the production of oil and gas.it ensures the community around its operation and its employees are far from far-reaching effects like accidents.

 

 

Some of the programs that help Obsidian Energyto reduce the risk of funds is hedging. Hedging concentrates in crude oil and natural gas, which the company regularly updates the prices on their website as they fluctuate. Learn More Here.

 

 

In summary, Obsidian Energy has found to maintain a positive result after restructuring to a small-scale intermediate size company of oil and natural gas production. Their principles have held them well towards achieving their goals in the evolving world maintaining them top at top 100 companies in the Canadian energy industry.

 

See Also: http://calgaryherald.com/business/energy/restructured-penn-west-proposes-name-change-to-obsidian-energy

Reforms That Led To Creation Of Obsidian Energy


Obsidian Energy Ltd is an energy company that specializes in petroleum products, oil, and gas. The term “obsidian” tells of its willingness to grow and transform with the changes in the fast-paced industry. With its high-quality assets and an entrepreneurial spirit, OBE promises investors a value for their money. However, it enters the market not as a new company but as a reformed Penn West Petroleum Limited.

Reason for Reforms

Formerly as Penn west Petroleum Limited, Obsidian Energy was one of the largest mid-size enterprises in the petroleum sector. It produced over 135,000 barrels per day, employed more than 1400 people, and had nearly 180 million shareholders. For the past four years, however, accounting scandals and high debt levels almost led to the company’s closure.

Surviving a crisis

In 2014, the firm’s debt was $3 billion. Through assets sales, Obsidian Energy reduced the debt by nearly 90% to only $384, million. In 2016, the firm settled the accounting scandals that had led to costly investors lawsuits. As a permanent solution to its woes, the shareholders decided on an entire overhaul in the organization’s leadership and operations. Get More Info Here.

Targeted Reforms

From the beginning of 2017, Obsidian has undergone several target-specific changes. The production level was cut down to 30,000 barrels per day. As a result, the number of employees was reduced to only 300. Even more, it narrowed its focus from 30 production areas to just four.

Shareholders take a stand

For a complete transformation, the management of Penn West Petroleum put together a 6-point resolutions proposal. The six resolutions were geared towards avoiding the previous crisis and most importantly, redesigning the company’s course of action. On the 26th of June 2017, the shareholders took their stand on the proposed changes. Over 92% voted in favor of each resolution.

Change of Name

Changing the company’s name from Penn West to Obsidian Energy was the fifth resolution on the proposal. Just as Obsidian, the firm was taking a dynamic entrepreneurial approach in its organization and operations. Other decisions included the appointment of Ernst & Young as the firm’s financial editor and election of 8 new directors.