Based in Calgary, Alberta, Obsidian Energy is a midsized company that deals with the production of oil and natural gas. Previously known as Penn West Exploration Ltd., the company was one classified as a Canadian Royalty Trust between the years 1005-2011 when it reached a peak market capitalization of 9.5 billion US dollars. With its oil wells and gas fields located in one of the world’s largest petroleum reserves, the Western Canadian Sedimentary Basin, Obsidian ranks among the companies with the most significant prospects of growth.
Perhaps Penn West Energy Trust, as it was then known, earned the loyalty of its investors when it paid high dividends by giving an annual 16% in addition to monthly payments in 2008, a rare thing in that market.
In a move to navigate the developmental stage of the company and to weather the stormy periods that oil markets underwent in the last years of the 2001-2010 decade, the company changed not only its name but also its strategy and leadership. After a meeting of shareholders, whole releasing the news of the change of its name, the company announced the shift of managerial plan to focus on three-fold approach: an aggressive quest for innovation and progress; a checked technical and commercial decisions; and accountability and transparency with shareholders.
Obsidian Energy declared its internal health as comprising of substantial assets, a balance sheet that showed promise, and a tactical hedging strategy that would catapult the business to exemplary levels of performance despite the low-price environments.
In the memo circulated to the shareholders earlier this year, the company not only appointed new directors but also approved Ernst & Young LLP as the auditors for the next one year. The directors included George Brookman, John Brydson, Raymond Crossley, David French, William Friley, Richard George, Maureen Jackson and Jay Thornton.
With the company adopting a three-year strategy of striving for modest growth with spending being restricted to the prices of petroleum, there is every reason to foresee a bright future for the corporation. Commenting on the choice of name, CEO Dave French said they chose the name inspired by the nature of obsidian which can be sharpened and honed.
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