Most countries with a thriving economy usually have a thing in common; and that is, one of the key sectors which have led to their success is often oil or gas related. However, it is not always sunshine and rainbow as some of the companies usually undergo financial crisis before they can finally be on a smooth sailing road. Such is the case with Obsidian Energy. The oil and Natural Gas Company has its headquarters in Calgary and owns a large number of the wells found in Western Canada. The company was set up about three decades ago and was known as Penn West Exploration Ltd. Back then it was among the sixty most significant corporations and even had a market capitalization worth about nine billion US dollars before it started experiencing financial constraints. That called for action, and Obsidian Energy underwent significant changes to enable it to reduce its debts and also place it back on track. As a result, most of its assets were sold hence leading to significant restructuring changes.
In 2014, Obsidian Energy underwent a significant scandal which involved the improper classification of millions leading to the restatement of financial reports of the previous year. As a result, most investors went to court, and the final cases regarding the matter were settled two years later. Today the company is much smaller as it sold most of its assets and reports a production of approximately 28000 barrels annually which is quite low considering it used to report more than 130000 barrels. It has also cut down the number of employees by more than a hundred percent from the previous as it now has 407 staff while it had about 1415 workers in the past. The new Chief Executive officer, David French claims that Obsidian now has a better future as it has no debts, it has the right driving principles which include discipline and innovation, and on top of it all, it has enough assets to begin its transformation and journey to success. In June he went on to announce that the company will now be known as Obsidian Energy since all the shareholders had seen the approval of that. Learn More Here.
Check out their page on: https://www.obsidianenergy.com/