Previously, Obsidian Energy went under different names including Penn West Exploration Ltd. Penn West Petroleum and Penn West Energy Trust. It is an intermediate-sized company that is involved in the production of oil and natural gas. The company is headquartered in Calgary, Alberta. At one time, Obsidian Energy was among the S&P/TSX 60 sixty largest companies on the Toronto Stock Exchange. It was also a Canadian Royalty Trust (CANROY) in 2005-2011 and reached its highest market capitalization in 2008 with a net worth of about $9.5 billion.
In 2014, after the crude oil crunch, the company underwent a major restructuring. The company’s oil and gas fields are located in Alberta along the Western Canadian Basin. This region is one of the world’s largest oil reserves. The company makes use of three key locations in the region to produce gas. These locations include the Peace River oil sands, the Pembina Cardium, and the Alberta Viking. It has a total production equivalent of about 30,000 boe per day.
The company was renamed because it planned on pursuing a path of modest growth in the years to come by tightly tying the price of oil and gas on the spending budgets. These resolutions were voted by a majority of the shareholders who preferred Obsidian Energy to undergo rebranding. They chose the name Obsidian because it is a naturally occurring volcanic glass that can easily be sharpened and honed. The name was symbolic to the situation of the company at that moment in time.
In view of its stable asset base, Obsidian Energy was able to reduce its net debt and at the same time focusing on four key production areas. The restructuring of the company enabled it to have a strong grip on its financial management systems and employment of cost effective measures which brought it back to profitability. Currently, the company is enjoying a steady growth and has adapted stringent measures to improve its revenue base. It has well organized management structure that is capable of transforming the company into one of the leading oil and gas producing company of all times.