Obsidian Energy impressed investors after announcing higher than expected third-quarter earnings on November 10th. The third-quarter gains are likely attributable to Obsidian’s continued streamlining of production. Executives, including CEO David French, suggested that this had been Obsidian’s busiest drilling season since the company transformed itself and lost the old Penn West Petroleum name last year.
Under French, a relatively new addition to the former Penn West family, Obsidian has seen more than its name change. The company has instituted a “Community Matters” program that seeks to proactively counter the potentially negative consequences of oil production in rural Canadian communities.
The new initiative is designed to involve community voices in risk mitigation, and to integrate Obsidian’s own environmental protection policies with the desires and perspectives of their local constituents. Obsidian has tasked itself with becoming a good corporate citizen and neighbor, and seeks to be more than an employer in the areas in which it operates.
French and Obsidian Energy have also ushered in a renewed dedication to designing and implementing environmental policies that exceed national standards and expectations. Obsidian’s new emphasis on environmental sustainability is part of an overall plan to continue construction of the company as a model for other mid-sized Canadian oil producers.
These two new efforts are combined with a strong, pragmatic, methodical perspective on growth. While Canada continues to utilize its massive oil reserves (third largest in the world) to supply the United States and other nations with vital petroleum imports, Obsidian hopes to grow in this changing industry by remaining on the cutting edge of technology, and by ensuring the maintenance and expansion of its already exceptionally productive assets.
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Obsidian has benefited tremendously by this shift in its corporate culture, and it largely has Mr. French and his team to thank for what shareholders must be characterizing as a fortuitous turn of events.
See Also: https://www.bloomberg.com/quote/OBE:CN