Changing their name from Penn West to Obsidian Energy was the best thing Penn West, now Obsidian energy, ever did. It was like icing to the cake. When it comes to business, perception is everything. What the company is thought of in the market is quite key. Obsidian Energy is a Canadian company that deals in natural gas production and oil.
After a few years facing a number of challenges, Penn west decided to make radical changes for the betterment of their company. The transition included a number of things starting from the investment policies to the management structure and production policies. However, they realized that keeping their previous name would lead people to think that they still were the same company when they are not. This led to the change of their name to Obsidian Energy and the changing of their stalk symbol to OBE.
Other changes they made include a change in the management- board of directors, a change in the restricted share unit and the reduction of shared capital for accounting purposes. By doing this, they were able to iron out the challenges they had faced before from the root cause. This allowed them to turn a new leaf. Obsidian Energy was even among the sixty most prominent firms in the Toronto stock Exchange and was also a Canadian Royalty Trust (CANROY). The company has several subsidiaries including Canetic Resources Trust, Endev Resources Partnership, and Sifton Energy Inc. Currently, the company has approximately 300 employees on staff.
Considering all the changes this company has gone through, it is set for a great year in 2018. Their new strategy of operations includes ensuring their activities of operation are within their means. Their balance sheet looks healthy and promising and their investment policies are promise a good chance of the company making profits even if the market prices are doing poorly. Find Additional Information Here.
Disciplined, relentless and accountable. These are the words that now define this company. Considering the results, they have had since their transformation, their future is bright. Their production has improved and now they are producing more than 700 barrels per day. This gives them confidence of their projections for this year considering that this was the results they got in winter. Though modest, the projections for this year are impressive.
The commodity prices this year and the moving dollar also add to their confidence in their performance this coming year.