Obsidian Energy is a Canadian natural gas and oil production company that is located in Calgary in Alberta. For an extended period, Obsidian has been the sixty-leading company on the Toronto Stock Exchange. The company has been the Canadian royalty from 2005 to 2011. In 2008, the company attained the highest market capitalization of about 9.8 billion dollars. In 2014 the price of crude oil fell significantly. It made the company experience considerable financial and operational difficulties. As a result, the company underwent substantial reorganization with most of its assets being traded to decrease its debt. Through the sales of some of its assets, Obsidian Energy managed to cut its deficits or debt to 384 million dollars this year from 3 billion in 2013. The company also reduced its employees from 1400 to 300 to reduce expenditure. The production of the oil in the firm occurs in three crucial areas. These areas are the Peace River oil sands, The Pembina Cardium, and The Alberta Viking. This year the total oil production was anticipated to be 31000 bbl on average.
Recently, the company changed its name from Penn West Petroleum to the current name (Obsidian). The name Obsidian got chosen because Obsidian is a natural volcanic glass that can be honed or sharpened. It implied that the company was ready to undergo significant changes. Click Here For Related Article.
Together with the name change, the company also changed its stock symbol to OBE on both the New York Stock Exchange and the Toronto Stock Exchange. This switch got implemented or applied in three to five days. Along with name change the company got directed on three principles. These are; disciplined commercial and technical decision making to protect and build enterprise worth, persistent pursuit of innovation and progress and transparent and accountable efforts with its stakeholders, its associates and the society in which it operates. Since currently, Obsidian has the right assets, a good balance sheet, and a wise strategy, it will set a standard for performing well even when the price of the oil goes down. Apart from changing the name, its stakeholders accepted all the resolutions the company suggested.