Strong Production in 2017 Makes Obsidian Energy Ltd Attractive to Energy Investors

Based in Calgary, Alberta Obsidian Energy Ltd. has been a leader in western Canada’s oil and gas extraction. Listed on the Toronto Stock Exchange and the New York Stock Exchange, the company reached $9.5 Billion USD market capitalization in 2008.

 

In 2017, Obsidian Energy exceeded their estimated 31,000 barrels of oil extraction per day, averaging 31,700 over the year. The firm noted that issues related to shallow base decline, ongoing waterflood and on target execution of their second half development plan combined to create the exceptional production numbers. These extraction figures hold in spite of unforeseen downtime that resulted from the adverse cold weather interfering with drilling activities in December.

 

The company announced even better output numbers coming into this year, reporting an average of more than 32,000 barrels per day.

 

President and CEO David French stated that 2017 was an outstanding year for Obsidian, with the company meeting challenges in the volatile currency and commodity markets.

 

Obsidian’s fossil fuel production relies on three primary locations in Alberta. The Alberta Viking, the Peace River Oil Sands and The Pembina Cardium. The company recorded outstanding output increases from the Willesden Green Cardium Production at figures higher than 30 percent over the previous reporting period.

 

Investors have benefited greatly from energy sector financial regulations. For instance, Obsidian’s generous annual dividend, paid out monthly, is taxed at the lower rate applicable to capital, rather than the standard dividend rate. Obsidian is considered a trust and its assets are treated as depletable resources, subjecting investors to the lower tax rates. This tax advantage is applicable to all royalty trusts in the United States. See Related Link for additional information.

 

When combined with the company’s high production rates, the trust assets dividend tax advantage comes as a welcome benefit to the firm’s investors.

 

The firm is covered by a number of energy financial analysts and firms including Thomas Matthews of Altacorp, Grant Hofer of Barclays, Jason Frew of Credit Suisse, Darren Engels of GMP FirstEnergy and Brian Milne of the National Bank of Canada.

 

Formerly known as Penn West Petroleum, the company changed its name to Obsidian Energy in June 2017 following the approval of the company’s board of directors and shareholders.

 

With forward looking statements disclosures applying, Obsidian’s management anticipates another year of strong growth in 2018.

 

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Obsidian Energy-A Company With Positive Goals

Obsidian Energy is a Oil and Natural Gas mid-size company based out of Calgary, Alberta, Canada.

 

In 2014 when crude oil prices took a back slide the company ran into some financial and production issues. Over the next two years the company worked tirelessly to recover and were able to pull themselves out of financial debt and restructure their company to one that is now stronger and ready to succeed.

 

Obsidian Energy was formally known as Penn West Petroleum Ltd., but in 2017 the company officially changed its name to Obsidian Energy. With this name change came other significant changes for the company as well. Obsidian Energy set out to improve their sales, production and commitment to its’ workers, customers and local residents.

 

This company is located in one of the largest petroleum reserve areas in the world in Alberta and harvest its products from three specific areas: Pembina Cardium, Peace River Oil Sands, and the Alberta Viking.

 

The company was originally founded in 1979. Now as Obsidian Energy the company employs three hundred employees. David L. French is the President and CEO. He began work with the company in October of 2016.

 

Obsidian has placed a great emphasis on community and the environment including questions and concerns associated with their work. The company is committed to ensuring their work leaves a minimal impact on the environment. Obsidian Energy also strives to always have clear and honest communications with local residents and anyone who is concerned about the company’s practices and production styles.

 

Obsidian Energy had a productive year in 2017 while also successfully handling some issues that arose including fluctuating currency values and severe weather which affected production timelines. With the work, and ultimate success of 2017 behind them, Obsidian Energy is heading into 2018 with their eyes on progress and further success. Go To This Page for more information.

 

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Gregory Aziz In Innovation Leadership

Gregory James Aziz is the C.E.O, Chairperson and President of National Steel Car (NSC), a subsidiary of National Industries Inc., which is one of the global leading railroad freight vehicles for manufacturing and engineering companies and located in Hamilton, Ontario.

 

The NSC gladly agreed to a harmony of the North American regulations for future generations of safer and stronger rail tank cars for transporting flammable liquids. The announcement was made in Washington, D.C, by the Minister of Transport, Lisa Raitt, and Anthony Foxx, the US secretary of Transportation.

 

 

Being one of the largest rail manufacturers of rail in North America, the CEO, Greg Aziz commended the visionary minister Raitt for taking charge of leadership on the issue. The customers of the industry needed to have the issue clarified for them regarding safety precautions and regulations and their developments, and that move explained that situation for them.

 

NSC was excited that the harmony came to fruition and developed the regulations. The occurrence of accidents in the US and Canada stressed the importance of having the rail system of North America as safe as it can be.

 

 

To make the rail industry keep being central and viable to the success of the local economy, such government leadership that conjures new standards as those should serve as an integral part of the success.

 

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According to the C.O.O at NSC, improving technology and upgrading the equipment should increase their safety and productivity as well and bring towards a vision of a better North American footprint. See This Page to learn more.

 

 

For the people of Gregory James Aziz, many discussions open up with several potential North American clients concerning the orders for new tank vehicles that aim for better safety solutions. The company is to manufacture tank cars complying with the new regulations. National Steel Car has an excess of over 100 years excelling in manufacturing, engineering while at the same time adhering to quality, thus earning a reputation of North America’s leader of manufacturing railroad freight vehicles.

 

 

Greg James Aziz was born in London in Ontario in 1949 and studied in Ridley College before majoring in economics at West Ontario University. He would join his family’s food business, Affiliated Foods, a company that would then grow into a worldwide importer of fresh foods from Europe as well as the Central and South America and distributed to wholesale markets in Eastern Canada and the US. As a result of the continuous pursuit of excellence in manufacturing and engineering, National Steel Car sets leadership standards in the innovation of new cars.

 

Source: https://www.bloomberg.com/research/stocks/private/person.asp?personId=39124620&privcapId=35787198