Obsidian Energy, Penn West’s New Name
Earlier this year, the Canadian based natural gas and Oil Company Penn west decided to change its name to Obsidian Energy after the majority of its shareholders approved the idea. According to its current CEO, Dave French, the company change of name, is an indication of in the company’s operation. Dave French has been the company’s CEO since March 2017 after the company embarked on several resolutions proposed by the shareholders.
Since 2013, Penn West Petroleum Ltd. has undergone a series of stages that were characterized by serious financial problems. The four years saw Penn West suffer from a financial scandal that kept the investors complaining about its high debts. As a result, the company lost a significant number of investors who lost faith in the way the organization was running its operations.
In June 2013, the company started feeling the weight of its debts. This made it reduce the number of its employees from 2350 to less than 1000. Penn west continued to suffer, and in 2015 the company announced a wage cut to more than four hundred employees. At that cut, it was clear that the company was heading in the wrong direction and action need to be done. This made the company to sell a significant portion of its assets as a means to cope with the massive financial burden. Visit This Web Page for more.
After recovering from a financial calamity, Obsidian decided to take on a new path that will ensure that it does not fall back to that period of economic retardation. Changing the name was one of the ways that the company was using to induce transformation. During the elections, 92% of the shareholders supported the idea of changing the company’s name form Penn West to Obsidian Energy.
According to officials of the company, the changing of the name from Penn West to Obsidian Energy opened a new chapter that is characterized by innovation and transformation. The company pledged to be accountable to its shareholders while embarking on making sound business decisions. The officials claimed that the company is at a strategic position that will enable it to regain its position in the market in less than three years.