Penn West Becomes Obsidian Energy

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.

See: https://www.bloomberg.com/quote/OBE:CN

Obsidian Energy, Brand New Name

Obsidian Energy Ltd. Is an average sized Canadian oil and conventional natural gas manufacturing company located in Calgary, Alberta? They experienced financial and operational adversity when prices of crude oil immensely went down in 2014. Consequently, the company goes through a compelling restructuring with the bulk of the resources bargained over the next two years to lessen the debt and the company’s arrears.

 

 

In July, by the year if 2014 Penn West freshly delegated Financial Officer Dyck, David had detected and disclosed irregularities in the company’s bookkeeping system that misclassified approximately and roughly 300 million dollars in cost and damages. Penn West Petroleum alert the U.S. and Canadian directors regarding with the inconsistency and flaws and broaden their inspection and analysis to reassess and re-examine conclusions way back in 2007. The accusations bound, and tied auditing irregularities comprise those in Canada and a class force impeachment in the United States. At the end of July 2014, independent accountant and auditors revealed and confirmed that 70 million dollars’ worth of expenses that is rechanneled as the capital disbursement on stuff like property and equity, equipment and plant in financial 2013.

 

 

The auditors disclosed that hundreds of millions of dollars in costs had been inadequately and improperly classified, urging it to summarize and recap financial reports for the year of 2012, 2013 and the first part of the year 2014. Get Additional Information Here.

 

 

On June 26, 2017, Obsidian is happy and satisfied that the investors or bondholders approved the change name. The CEO, French Dave, reveals that the firm designates the name Obsidian because it is typically acquiring volcanic looking glass that can be a grind and honed. Shareholders chose and voted 92 percent in backing up of the resolution of changing the name.

 

 

They are pleased to identify the final step with the transformation changing the name to Obsidian Energy. As they embark the brand-new stage, they will monitor the company with ethics and foundation. Obsidian Energy is well grounded in right resources and assets.

 

 

Additional to the name change, investors and shareholders legalized and approved all resolutions bounded in the 2017 Annual and Special Meeting on April 30, 2017. Currently, the company was at the apex of its success and was even among the sixty most prominent firms in the Toronto Stock Exchange and was also a Canadian Royalty Trust (CANROY).