Obsidian Energy once tried to bend the rules of reporting their earnings, according to the stock trading block, Seeking Alpha. The company could not and did not avoid this accusation. The former management of the company quickly left. The new executives brought in to replace the ones who left did not commit the error. Despite the new crop of executives not committing the error that led to the reporting irregularities, the Securities and Exchange Commission insisted the company pay the $8.5 million dollar fine levied against them. The company paid the fine because there was little else they could do in that situation.
The Seeking Alpha blogger accuses the Canadian Securities and Exchange Commission of bullying the company into paying this fine. He believes the fine itself would be fine, as companies need to be held accountable for their actions. However, the SEC did not seem to be satisfied with making the company pay the fine. The company wanted the executives to publicly promise that Obsidian Energy would never make the same mistake again. The new executives did so, seeing no other options. It just seemed to be the easiest way to deal with the problem facing them. See This Page to learn more.
The problem has been resolved, but it does not seem to have hurt the company. Its stock prices continue to go up. Whether or not the SEC will return to hound the company again later is unknown, but it seems unlikely. Investors continue to trust Obsidian stock, and their employees work to make sure Canada and other countries have the supplies people need to cook their food and heat their homes. The company does not limit itself to oil only. It also delivers natural gas and other clean energy sources that help power the modern world and protect the environment for future generations. The Obsidian Energy was at the apex of its success and was even among the sixty most prominent firms in the Toronto stock Exchange and was also a Canadian Royalty Trust (CANROY).