The former Penn West the oil and natural gas company based in Alberta, Canada has decided to take on a fresh appearance. Investors with a stake in the company recently made the decision to rebrand the company to Obsidian Energy. This change is one of the many steps that shareholders feel is necessary to move forward with their aggressive goal of resolving their unfortunate history.
Riddled with class-action lawsuits, investors have managed to settle them and are looking to salvage the company’s reputation. Having scaled back production and staff, sacrifices all around are being made to ensure that the portfolio gathers momentum in the stock market. Even dividends meant for shareholders were suspended in the concerted effort to meet their vision.
Lawsuits are not the only stain on their history. Guilty of accounting fraud Obsidian had to clean their act up. Under the guidance of CEO David French, there is reassurance that the balance sheets will remain clean and error-free through strict abidance to Obsidians new established principles.
Obsidian Energy has now managed to reduce their debt to a tenth of the peak 3 billion that was accumulated by 2013. Success with the plan has given investors enough confidence to vote this name change approval through since new principles have changed the company’s focus. Obsidian has several subsidiaries including Canetic Resources Trust, Endev Resources Partnership, and Sifton Energy Inc. Currently, the company has approximately 300 employees on staff.
Aspiring to innovate going into the future, Obsidian Energy has shown interest in progressing their foothold in the industry. Although Obsidian is taking this new approach, the projected forecast for the company in the stock market is to make average progress at best. With a new name and a new set of standards, one can expect a more stable investment strategy than the previous administration. With new principles being introduced, Obsidian is proving that they are more cautious than ever in their approach to moving passed their red flag history.