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).
See Also: http://boereport.com/2017/06/26/penn-west-changes-name-to-obsidian-energy-ltd-and-announces-voting-results-from-the-2017-annual-and-special-meeting-of-shareholders/
Obsidian Energy is a mid-sized oil and gas producer. Obsidian’s high-quality assets and commitment to bottom-line results has netted the company nearly thirty thousand boe a year. Its entrepreneurial spirit and relentless passion is what gives the company the drive to succeed. Its disciplined workforce helps the company speed up its organizational needs and growth. Being a company of accountability is also important for Obsidian Energy, both to its shareholders and to the communities at large. This should make every shareholder happy, I would think. As well, as the communities in which the company works in. Succeeding in an ever-evolving industry is at the forefront for Obsidian Energy.
David French who took over as CEO of Obsidian Energy has already made a clear and lasting impact on the company. He has spearheaded a total reorganization of the company from the top to the bottom and streamlined its operations. He has eliminated the majority of the company’s debt from three billion dollars, down to only just under three hundred and ninety million dollars. That is very impressive in my opinion. He has established the company on a path to sustainability, focusing the company’s operation on only a handful of the company’s portfolio of assets. He has also streamline employment at the company to a steady three to four hundred workers. With all of the changes that have been made David French found that the company no longer fit the old Penn West Petroleum name, and set out to change it. He was able to garner the support of nearly ninety two percent of its shareholders. With this in mind the name was changed to Obsidian Energy. Obsidian was named after the volcanic glass that can be sharpened and honed. Read This Article for related information.
David French is no stranger to the oil and gas industry. He previously worked for Bankers Petroleum. He has also been part of management or served as consultant to companies such as Apache Corporation and McKinsey and Company. He also holds a Bachelors and a MBA. I don’t think the company could have found a more qualified individual to run Obsidian Energy.
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