As a publicly traded company, Penn West Petroleum, LTD. must pass all major changes to its shareholders for a vote. That’s the process the energy supplier went through recently, when it wanted to adopt a new name and the shareholders voted in favor of the change. That means customers will have to get used to seeing Obsidian Energy on their bills in the near future.
Additionally, the name change was accompanied by a stock symbol change. Formerly, Penn West Petroleum traded as PWT on the Toronto Stock Exchange and as PWE on the New York Stock Exchange. Now, Obsidian Energy trades as OBE on the Toronto Stock Exchange and the New York Stock Exchange. The changes were implemented in the latter half of 2017.
As news of the changes became publicly known, David French, who serves as the company’s president and chief executive officer, released a statement that revealed the name change was just one act in a larger revamping of the company.
He said Obsidian also has a new, updated mission statement to go along with the new identity. The goals for the company are three-tiered:
- Stronger decision-making to protect the value of the company, based on both commercial and technological factors.
- A bigger focus on taking advantage of new innovations, as well as seeking other ways to inspire company growth.
- Establishing greater transparency and accountability to Obsidian Energy’s shareholders, affiliations, and to the community at large.
Mr. French added that Obsidian Energy has started out in a good position. He said the company’s assets and a strong balance sheet contribute to its ability to compete in any market, even where energy prices are lower. Additionally, the CEO said Obsidian Energy’s hedging strategy gives it strength in the markets, where he felt confident that the company would continue to outperform.
Following these changes, a new auditor was appointed, and eight directors were elected to the board, proving the changes were more than superficial. As Obsidian Energy heads into the rest of 2018 with a new face, it seems poised to generate impressive gains for shareholders. A new mission dedicated to progress may be just what the energy company needed.