This is a company that produces both natural gas and oil and it is located in Calgary, Alberta. Previously it was known as Penn West Exploration Ltd. The current identity, Obsidian energy name was given by the stakeholders of Penn West Exploration Ltd who voted 92% for the sake of resolution. The name was given since Obsidian is a volcanic glass that occurred naturally and also was easy to sharpen and hone it as explained by the CEO of the company Dave French. According to Toronto stock exchange, it ranked top 60 companies in the market.
Obsidian investment report
It paid higher dividends to its shareholders which brought an increase in annual rate ranging from 15% and 16% at the beginning of the year 2008. On that, it gave a relative frequency for equities which were shortlisted in the New York Stock Exchange. Since the collateral security is viewed as a palatable resource, the dividends given to the stakeholders are not taxed at normal dividend rate, but it is handled as return on investment instead of return on capital and this is an added advantage to the United States and it is applied to all loyalty trusts.
Financial Accounting problems
In the year 2014, the company employed a financial officer who in his financial analysis, came up with a report showing how the company’s financial accounts were being mishandled and this lead to a misclassification of almost $300 in expenses. Obsidian Energy had reduced its workforce to almost half from the year 2012 to June 2014. It realized a profit of $143 in the second quarter of the year 2014 which was a representation of 29% per share capital. The company reported that results showed that there were accounting irregularities summing up to $381million in the year 2013 and 2012. After getting support from auditors who they contracted, they revealed that $70million used in operating was reclassified as capital expenditure on stuff like plant and equipment.
From the year 2013, Obsidian Energy started to face a reduction in the number of employees from 2,350 to a minimum number of 1,000 employees. Due to the reduction in the price of oil, the company decided to reduce 400 full-time workers and contractors basically from the main branch which is a representative of 35% of all workers in that company.
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