Penn West Petroleum has announced that its shareholders have approved the name of the company to Obsidian Energy. The change will become effective immediately. Besides rebranding to Obsidian Energy, Penn West Petroleum will now trade as OBE on both New York Stock Exchange and Toronto Stock Exchange. Its stock symbol change will be effective in the next three to five business days. The shareholders won’t take any action in regard to this change.
Penn West Petroleum feels pleased to recognize its efforts to transform with a name change to Obsidian Energy. As the company starts a new chapter, it will be guided by three principles namely; discipline, relentless pursuit of innovation, accountability, and transparency, and commercial and technical-decision-making. As a result, it will build and protect its enterprise value and partners and the communities in, which it operates. With the right assets, prudent hedging strategy, and a healthy balance sheet, Obsidian Energy is well positioned to set a standard for performance even in dire economic status. Besides the name change, Obsidian’s shareholders also approved all resolutions outlined in its 2017 Annual and Special Meeting Circular dated April 30, 2017. Read This Article for more information.
The name change comes after Penn West Petroleum survived an accounting scandal that hit them over three years ago. David French, who took over as Obsidian Energy’s CEO will ask the shareholders to approve the name change because the oil and gas company no longer resembles its predecessor. Penn West Petroleum had to restate its financial reports for 2012, 2013 and throughout the first quarter of 2014 after classifying its expenses improperly. As a result, investors sued Penn West. Meanwhile, Obsidian Energy has embarked on assets sale to reduce its net debt from $3 billion in 2013 to $384 million as of March 31, 2017. Obsidian Energy now forecasts production of 28,000 barrels of oil daily. Obsidian Energy would produce 135,000 barrels of oil equivalent per day before undergoing a financial crisis. As of December 2016, the company had 407 employees versus 1,415 employees three years ago. Shareholders voted 92 percent in favor of renaming Penn West Petroleum to Obsidian Energy.