Obsidian Energy Limited is an intermediate-sized Canadian Oil and natural gas producer. It is located in Calgary, Alberta. Today the company produces about 30,000 barrels daily, which is due to their high-quality assets, not to mention the company’s well-balanced portfolio.
Previously Obsidian Energy Limited was known as Penn West Petroleum Limited or rather Penn West Energy. The name was changed to Obsidian Energy Limited in 26th June 2017, after serious deliberations with the shareholders, who finally approved the change. This was to compliment the many important changes the company has been implementing since 2014, after the financial scandal that hit the company.
Since the founding of the company in 1979, the company has known an upward rise to a point that it was among the top largest companies in the stock exchange of Toronto. In 2008, Obsidian Energy has already gotten to a peak market capitalization, going for a net worth of $9.5 billion, approximately.
In 2013 and before, Penn West had over 2000 employees and a production of over 135,000 barrels in a single day.
The problem started when a fraud was discovered in the company in 2014. an accounting irregularity of $381 million in 2012 and 2013 was revealed by some preliminary findings. With the help of the US and Canadian regulators, investigations were carried, reviewing records of as far as 2007. this lead to a huge debt crisis of almost $3 billion, and a crash of commodity price.
Under the leadership of David French, the company’s CEO, since 2014, Obsidian has made remarkable progress, which has seen the company rose over the financial crisis to where it is today. Though the company had to cut down its employees to 400, and also stop paying dividends, it has almost gained its stability back. Obsidian has been able to settle its $3 billion debt, as it were at the end of 2013, remaining only with less than $384 million, which was achieved through the sale of the company’s assets. Click Here to learn more.
The now totally transformed oil producer has employed prudent hedging strategy, acquired the right assets, and a healthy balance sheet, all aimed to make the company achieve standard performance.