Obsidian Energy was once known as Penn West Petroleum Ltd., until June 26, 2017, when the company formally changed its name. Obsidian Energy is based out of Calgary, Alberta, Canada, and the Western Canadian Sedimentary Basin, and is a company that produces oil and natural gas.
Following an “accounting scandal, debt crisis, and commodity price crash” which lasted more than three years, Penn West formally announced they were changing their name to Obsidian Energy. The shareholders were pleased and excited with the change. They also changed the stock symbol to “OBE” on the Toronto and the New York Exchange. The name change was the final step in the transformation of the company. The name is not the only thing that has changed, former Calgary CEO, David French, states the company bears no resemblance to the old Penn West.
Penn West had improperly classified hundreds of millions of dollars in expenses; this was discovered in July 2014, resulting in the 2012 and 2013 finance reports requiring restatement. By changing their name and modifying the way they handle the sale of assets, the company and its shareholders look forward to being able to recover from the past mistakes and poor judgement calls. Find Related Information on this page.
Obsidian Energy has already reduced the debt margin created by Penn West from nearly $3 billion at years end in 20013, to $384 million by this past March 31st.
By cutting their debt ratio, and scaling back on the overall company size, Obsidian Energy has made great changes in the way the company handles its business. Now producing 28000 barrels of oil per day, compared to 135,000 in 2013. Even the number of employees is down from three years ago–1415 in 2016 to just 407 currently.
This new year is a new beginning for Obsidian Energy, as everyone involved is looking forward to a new chapter.