The stock of Obsidian Energy Ltd (NYSE:OBE) closed at $1.04 maintaining the same position in yesterday’s trading session. Obsidian has moved ahead to unleash details regarding a series of strategic actions it wishes to undertake all targeted at the unlocking of its shareholder value.
An official working with the company has disclosed that they will do all they can, including the sale of Company’s Alberta Viking and Peace River assets to ensure that they pay their debt in good time. The other thing will be the returning of capital to the significant number of shareholders, which it plans to do achieve through the implementation of a Normal Course Issuer Bid.
Much has been going on lately and that is including the company’s move to pronounce the deferral of the proposed share consolidation as well as the alignment of pay. The company wants to streamline matters in such a way that it will be paying the director a sensible amount that will come out as fair when brought in close relation to that of shareholders.
The President and CEO of Obsidian Energy David French opined, “Today’s announcement is the natural next step in our ongoing strategy to unlock shareholder value and establish Obsidian Energy as a growth company focused on optimizing our industry-leading position in the Cardium.”
He delved deeper into the matter to disclose that over an elongated period of time they had been undertaking an active review of the industry consolidation opportunities with a huge deal of focus and synergies on the creation of a company characterized with the best-in-class operating performance, industry-leading growth prospects and financial discipline.
The last three years have witnessed the business guru make divestments of approximately $2.3 billion of assets which eventually led to significant improvements of the company’s operating and financial performance. The other thing that was achieved was the elimination of a series of legacy challenges which over quite some time constrained the business guru’s performance in a significant way.
An executive working with the company has said that by the second quarter of 2018 they hope to have concluded on the sale of the Alberta Viking assets.