The Canadian oil royalty trust, Penn West, has undergone some changes, and it has turned out to be more than a simple name change. Obsidian has restructured into a regular corporation, and has made other notable changes. These changes were voted upon and passed at a recent shareholder meeting.
Based in Calgary, Alberta, Canada, Obsidian Energy recently changed its name, as it was at once time known as Penn West Energy Trust. Undergoing some changes, the company is looking forward to a great year in 2017. Although it is called a medium-size energy producing oil and gas company, it is one of the 60 largest companies on the Toronto Stock Exchange. Shares of OBE are traded on the New York Stock Exchange as well.
Although the company experienced operational and financial difficulties when the price of oil fell in 2014, its financial future and operations appear secure on today’s markets.
After having converted from a Canadian Royalty Trust to a standard corporate structure in 2011, the company pays its dividends on a monthly basis, which is a rarity for companies listed on the New York Stock Exchange.
In their recent annual meeting, shareholders approved the name change, and all other changes listed on the agenda. Since October, David French has taken over as CEO for the company. He had asked the stock holders for the name change, since, as he said, “The company no longer resembles the old Penn West”. See This Page for additional information
In 2013, the company reduced its debt by selling assets, reducing that debt from $3 billion down to $384 million.
Obsidian Energy appears to be a smaller company than the previous Penn West. Their production will be down to about 28,000 barrels of oil per day, compared to the previous 135,000 that was produced in 2013.
In a streamlining process, the company reduced its employees by about one thousand employees.