Obsidian Energy, formerly known as Penn West is a mid-sized oil company based out of Calgary, Alberta, Canada. It is one of the largest companies on the Toronto Stock Exchange. It operates both oil and natural gas fields in Alberta.
Obsidian Energy has made several much-needed changes to preserve its economic growth and stability. In 2013, it had $3 billion in debt, was drilling 135,000 barrels of oil equivalent daily and employed 1400 workers. After restructuring, it now has $384 million in debt, drills 28,000 barrels of oil equivalent daily and has only 300 workers. Subsequent to the restructuring, Obsidian Energy has a new profit outlook. As of today, the goal is to tie the expected growth to the price of oil, therefore it is forecasting much more modest growth over the next three years.
In 2018, Obsidian expects 5% production growth from its multiple drilling sites. It has three drilling sites in the Deep Basin in Mannville, which is a relatively new location for Obsidian. It also has relatively older sites in Pembina Cardium, Peace River Oil Sands, Alberta Viking and a newer location at Waterflood. This is a restricted version of its previous drilling sites. It once had as many as 30, now it’s down to the above-mentioned sites.
Obsidian is making every effort to reposition and transform itself from the company that was sued by its investors in 2014 to a company that clarifies its true financial standing while working hard to keep the profits high. It hired a new CEO in October of 2016, David French. He pointed out that Obsidian was looking forward to the new chapter it was about to start. He has been at the helm for nearly one and one-half years now and it obvious that he was dead serious about turning Obsidian around. Visit This Page to learn more.
The class-action suit filed by the investors was settled in 2016, now Obsidian can look forward with no encumbrances to hinder their progress. If they adhere to their plan and continue paying down debt, plus base their operating expenditures on the current prices of oil and natural gas, they’ll be fiscally responsible and if the fields keep yielding their black gold, Obsidian should achieve even greater standing on the Toronto Stock Exchange in the near future.