Obsidian Energy is a Canadian based energy company. It produces natural gas and oil. This is a mid-sized organization that even produces fuel products for the United States. In March of 2018, Obsidian has recorded exception growth and performance in terms of their stocks. Shareholders are expected to have an excellent gain during the first quarter of this year.
Obsidian’s growth is fueled by the reduction of excess oil that has been weighing down the fuel market for a few years now. With the dwindling surplus, energy sellers can now slightly increase their prices to meet the never-ending demand for petroleum-based products.
Obsidian was founded in 1979 and it was originally called Penn West Exploration Ltd. The company has operations throughout Canada and is headquartered in Calgary. The company is headed in the right direction in terms of its immediate growth in 2018 and in the following few years. Investors can not only expect to get a good return on their portfolio; many of the company’s customers can expect to acquire more fuel at competitive prices. See This Article for more information.
The latest cost per barrel is $65 dollars. This price is slightly up for energy purchasing clients. However, it is necessary because of the dwindling oil reserves. A lot of excess oil was lying dormant within the energy market and had to be slowly siphoned off before Obsidian Energy could increase its prices. Obsidian had extra reserves and a few other energy company had surplus supplies as well.
The company is looking to steadily increase value for its investors. One thing they plan on doing is to sell the company’s non-core natural gas business. They also plan sell their Alberta Viking and Peace Rivers Operations. In other words, Obsidian Energy will streamline its organization to maximize stakeholder profits. This action will immediately begin to increase the profit margins of the operation and allow it grow in a positive direction.
View Source: https://en.wikipedia.org/wiki/Obsidian_Energy