What does a company do when there is a crisis afoot? Well, some react terribly and only make the situation even worse. Those companies tend to end up in bankruptcy, and everyone who works for them or counts on them in any way is left out in the rain. Fortunately, this is not the route that the old Penn West decided to take.
The company has actually decided to rebrand itself as Obsidian Energy. The Board of Directors thought that it would be a good idea to have a new name to reflect the new nature of what used to be called Penn West. They wanted something that would show the world that they really were taking steps in a new direction. The Board turned over the decision to rename the company to shareholders.
The vote by shareholders was not even a close one. Ninety-two percent of shareholders voted in favor of the name change, and so now you have the new Obsidian Energy company.
Other actions have made it possible to see how this company will adapt to the future. They made the choice to sell off a number of assets for example to help lower the high levels of debt that they had been carrying around with them for some time. They were able to reduce the level of debt they had from $3 billion to $384 million. This has helped to keep the company in a position where it can continue to grow and innovative when it has the chance to.
Obsidian has several subsidiaries including Canetic Resources Trust, Endev Resources Partnership, and Sifton Energy Inc. Currently, the company has approximately 300 employees on staff. The number of employees at the company has been reduced as well, but this is all in an effort to lower the overall costs of doing business. The fewer people there, the less costs the company has right now, and that means they might not have to take on debts that they just paid off recently anyway. See This Page for more information
Given all of this, it is pretty obvious at this point that the people in charge of the new Obsidian Energy have made some smart moves to help keep the company alive and moving forward. That is something that we can all appreciate, at least those of us who have any dealings with Obsidian Energy.