Obsidian Energy Moves Past The Oil Price Crisis

Obsidian Energy is a Canadian oil producer that operates around the Calgary area. The company is a mid-sized producer that produces both oil and natural gas. Obsidian Energy was originally named Penn West Petroleum before changing its name in June of 2017.

Obsidian Energy operates wells in a number of areas. The company has wells in the Alberta Viking Area, Peace River, and Pembina Cardium. The company was known for paying out high dividends between 2008 and 2015 with average yields at about fifteen percent. The company faced the difficulties that plagued other oil producers with the 2015 oil price drop.

The company was able to do a number of things to move through these difficult times. It went through the process of shuttering a number of oil wells without suddenly firing employees. It was able to reduce its staff from over twenty-three hundred employees to less than a thousand. These cuts were largely from contractors and those involved with opening new wells. The company went onto reduce its staff by four hundred additional employees with most of the layoffs coming from its corporate office. This represented a thirty-five percent reduction in staff. These cuts allowed Obsidian Energy to avoid excessive debt during a time when many oil producers were going out of business. The company also reduced compensation to its board of directors during this time.  Visit This Page for more information.

Obsidian Energy has done a number of things to regain its business following a slow increase in oil prices. It has been able to open a small number of wells without over extending itself during a time when oil prices are still low. The company has been able to restructure its debts in 2014. This process involved going back and adjusting its predictions on future investments in light of its reduced overhead and lower oil prices. Obsidian believes that its new name and expanded production will allow for it to continue being a leader in Canadian oil. Obsidian Energy has resumed paying dividends after suspending them for a quarter during the oil price crisis.

Source: http://boereport.com/2017/06/26/penn-west-changes-name-to-obsidian-energy-ltd-and-announces-voting-results-from-the-2017-annual-and-special-meeting-of-shareholders/

 

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