Obsidian Energy – New Management With A New Mission

Obsidian Energy has finally emerged from the restructuring of what once was Penn West of Canada, with the final piece of their new management team now in place. Obsidian realized a few years back that they could not continue under the old business model because of too many products that were not producing enough cash flow to sustain operations. They had a significant employee roster working on the multiple product lines as well, meaning that profit margins were practically non-existent. The company was also heavily leveraged with debt because of credit lines needed to properly fund these burdensome operations. The decision was made by shareholders to change the business focus, including adding a complete new management team over a short course of time. Check Out This Article.

 

CFO David Hendry

When corporations face balance sheet problems, the best place to begin reformation is with a financial professional. David Henry was the individual Penn West chose in April 2015. This began the process of reassessing the financial picture and determining to make the company a streamlined sustainable operation. Henry had previously served as Vice President at Talisman Energy. He began as an accountant, but was promoted to CFO at the beginning of the company transition period.

 

Vice President Tony Berthelet

Tony began as a General Manager in December 2014 and was promoted to VP of Development & Operations in June 2016. He has over 20 years’ experience in the energy industry, having worked previously as field level management for several other energy companies in Canada.

 

Vice President Andrew Sweerts

Andrew Sweerts joined the Obsidian Energy management team in June 2014 and served as VP of Business Development & Production until February 2017. Andrew had formerly held positions with Marathon Oil of Canada, Western Oil Sands LP, and Suncor Energy, bringing significant amount of experience to the group.

 

President and CEO David L. French

Last, but certainly not least, is David L. French. David is the newest addition to the Obsidian Energy management team, bringing leadership experience as President and CEO

of Bankers Petroleum LTD. David French has a wide range of prior experience in Europe and the United States, having been educated at Rice University and Harvard Business School.

 

President French recently announced that under his leadership since October 2016 the company has discharged all of the outstanding debt left from the Penn West changeover. Obsidian Energy is now on course to fulfill the company mission of reducing product lines and increasing cash flow for a leaner and more stable company operation.

Penn West Petroleum Changes Its Name To Obsidian Energy

As part of its restructuring strategy, Penn West Petroleum changed its name to Obsidian Energy. This announcement come as the company was planning on how to enhance its market share. The company’s business has been severely hit by three years of low commodity prices.

David French said that the name change would have to be approved by the company’s shareholders before it becomes effective. According to the new chief executive officer, the new oil and gas company no longer resembles the previous one. It has drastically revolutionized its operations and management. He added that this year marked a new beginning for Obsidian. Recently, David was mandated with the duty of spear heading the changes.

 

Penn West’s problems began in 2014 when an audit discovered that millions of dollars in expenses had been classified wrongly. This discovery saw the company redo its financial reports dating back to 2012 and as recent as the first quarter of 2014. Following the scandal, several investors sued the company. The lawsuits were settled in 2016. During the same period, the company was forced to sell its assets to clear debts amounting to over $3 billion. The sale has seen the debt owed by the oil and gas company fall to over $384 million by the end of March 2017. Refer to This Site for Additional Information on the company.

 

The company’s size has drastically reduced. Its oil production has fallen from over 135,000 barrels of oil per day to just over 28,000 barrels. Its employee base has also reduced. In the beginning of 2014, the company had 1,415 employees, this reduced to 407 at the beginning of this year. From these statistics, it is clear that the current company is not the old Penn West Petroleum. However, the management of the new company, Obsidian Energy has vowed to enhance its productivity and profitability margins.

 

About Obsidian Energy

Obsidian Energy Ltd is a mid-sized Canadian oil and natural gas production company. The corporation is based in Calgary, Alberta. The company is listed in the New York Stock Exchange and Toronto Stock Exchange (TSE) as OBE. It is the 60th largest company on TSE. Notably, Obsidian Energy’s predecessor was founded in 1979 in Calgary to explore oil fields in West Canadian Sedimentary basin.

 

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