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penn west auditors

We aim to create a safe and valuable space for discussion and debate. Unauthorized distribution, transmission or republication strictly prohibited. This site and its content are maintained by Honeywell. 365 Bloor Street East, Toronto, Ontario, M4W 3L4. Almost four tumultuous months have passed since that “oh, here is something else” moment, one of many Mr. Roberts has faced since joining the fallen market darling. Penn West has informed the United States Securities and Exchange Commission and the Alberta Securities Commission about the review. "Some of that is possibly a matter of documentation. It said talks with lenders were under way that could put the company offside its debt agreements. Grab is co-operating with the SEC and has agreed to a settlement. Penn West is cooperating with regulators to get to the bottom of the accounting scandal, will defend itself vigorously in lawsuits as they play out, and the company remains held by a number of hedge funds, he said. 351 King Street East, Suite 1600, Toronto, ON Canada, M5A 0N1, Oil producers plan spending hikes as hope returns to patch, Restructured Penn West proposes name change to Obsidian Energy, Unchecking box will stop auto data updates, Due to technical reasons, we have temporarily removed commenting from our articles. Unaudited results in 2014 and 2013 will also be rewritten. Please try again. The two men "have reimbursed the company for cash bonuses and certain stock awards they received during the period when the company allegedly committed accounting violations.". She declined further comment. The company has also sold assets and shrunk dramatically to reduce debt and survive the oil price downturn. Wednesday's action from the U.S. agency comes the same week Obsidian formally changed its name from Penn West Petroleum Ltd. – a move meant to mark the restructuring of the company, and an attempt to make a break from its past poor performance. In a report to clients Nov. 18, Peters & Co. said the company has taken several steps to improve efficiencies and reduce debt, but overall sustainability remains a challenge. He started at Penn West in June, 2013, replacing Murray Nunns, a long-time board member who had occupied the CEO’s chair for two years. The company has decided to restate its audited financial statements and other documents for 2012 and 2013. © Copyright 2020 The Globe and Mail Inc. All rights reserved. The headquarters building of the U.S. Securities and Exchange Commission (SEC) stands in Washington, D.C. "This is not the old Penn West," Paul Surmanowicz, capital markets lead at Obsidian Energy, said in an interview Wednesday. This is a space where subscribers can engage with each other and Globe staff. If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. The brokerage recommended the company reduce the dividend and capital spending because of the low commodity price environment. One of Canada's largest energy companies, Penn West Petroleum Ltd., has unveiled details of accounting irregularities and launched a review of its financial statements dating back 4 1/2 years. Click here to subscribe. Class action lawsuits were filed in both Canada and the United States. However, its conclusions are not shared by the Calgary-based regulator. “It was almost a source of embarrassment … We challenged our people to be better and we said we are going to hold you accountable.”. Mr. Comments may take up to an hour for moderation before appearing on the site. Non-subscribers can read and sort comments but will not be able to engage with them in any way. The commission complaint charges Penn West, Mr. Takeyasu, Mr. Curran, and Mr. FirstEnergy's Pennsylvania utilities have contracted with Honeywell to administer this program. In 2014, Penn West made public details of accounting irregularities and launched a review of its financial statements. Like other oil producers, the company has also been battered by nearly three years of low crude prices. We ask you to keep your comments relevant and respectful. “It wasn’t very long before he was in my office and said: ‘We need to fix this. "He looks forward to defending the case vigorously and prevailing in court," Mr. Albert said. The next issue of Top Stories Newsletter will soon be in your inbox. Four months after it was rocked by an accounting scandal, Calgary producer Penn West has turned the corner, CEO David Roberts says. Capital expenses are directed toward assets and development projects, and these types of expenses do not immediately affect a company's income statement. Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. This, in turn, would reduce the amount of money the company expects to take in. Lawyers for the former employees also say the charges are without merit. Welcome to The Globe and Mail’s comment community. The company added that its historical financial documents for the period under review are not reliable. The SEC said it is seeking permanent injunctions and monetary relief against all the defendants, officer-and-director bars from Mr. Takeyasu and Mr. Curran and a clawback of incentive-based compensation awarded to Mr. Takeyasu. “We are now going to start focusing the company on growth going forward, which we think is an important marker for the market.”. Rocked by accounting scandal, Penn West has now turned the corner, CEO says, tap here to see other videos from our team. Within the company, this practice was referred to as 're-class to capital.'". Learn more about Obsidian Energy’s compelling offer for Bonterra. The company’s board was looking for a big shakeup, around the same time as competitors Encana Corp. and Talisman Energy Inc. were also re-inventing themselves to survive in a new environment of oil and gas abundance resulting from the deployment of horizontal drilling and hydraulic fracturing technologies. It produces about 30,000 barrels of oil equivalent a day, compared with about 133,000 in 2013. I am a make-it-happen kind of guy.”. Read our, I'm a print subscriber, link to my account, Avoid the use of toxic and offensive language. Its fortunes had declined steadily since it turned itself into an income trust in 2005, a result of pressure from investors looking for a fast buck from the conversion. “You have to operate to the thinnest margin, and you have to think about secondary recovery, and in their case tertiary, and what can you do to continue to add energy to the reservoir.”. The U.S. SEC alleges the accounting fraud was orchestrated by three former senior executives: Penn West's former chief financial officer Todd Takeyasu, former vice-president of accounting and reporting Jeffrey Curran, and former operations controller Waldemar Grab. Penn West did not say which employees are "believed responsible" for these accounting practices, but noted they are no longer working for the company. © Copyright 2020 The Globe and Mail Inc. All rights reserved. Penn West "will not be available to provide further comment" on the statement detailing the review, according to representative of Longview Communications Inc., a public relations firm often involved in crises. They were expressing concerns about accounting practices going back several years. Rick George, Penn West's chairman, said in the press release the company acted "quickly and effectively" to review its accounting methods. "The object of the scheme was to deceive the investing public by understating Penn West's publicly reported operating expenses and related financial metrics and making the company appear to be managing costs more efficiently than it actually was," said a court document filed by the SEC. His Penn West adventure started four months later with a coffee break with Mr. George, who happened to be in Houston for a meeting. We aim to create a safe and valuable space for discussion and debate. Some information in it may no longer be current. But we do feel that this is an issue from 2014 and there's no new information here.". As a result of the former accounting practice, this category appears to be overstated on the company's balance sheet. 351 King Street East, Suite 1600, Toronto, ON Canada, M5A 0N1, In Penn West turnaround, it's one step forward, many steps back, Options expert tackles the Penn West case, Penn West board faces allegations of stock option manipulation, Debt-heavy Penn West posts $728-million loss, Unchecking box will stop auto data updates, Due to technical reasons, we have temporarily removed commenting from our articles. Some information in it may no longer be current. Election of Directors. Mr. Roberts conveyed the concerns to his board, led by chairman Rick George, the former Suncor Energy Inc. chief and oil sands pioneer who had recruited him. The commission complaint filed in New York Wednesday demands a jury trial and alleges Obsidian "fraudulently moved hundreds of millions of dollars in expenses from operating expense accounts to capital expenditure accounts," according to a news release. This is a space where subscribers can engage with each other and Globe staff. Grab with violating the anti-fraud, reporting, books and records and internal-controls provisions of U.S. federal securities laws between 2012 and the beginning of 2014 – a time when Penn West was one of Canada's largest energy companies. Bill Andrew was in charge before Mr. Nunns's appointment in 2011. If you are looking to give feedback on our new site, please send it along to, To view this site properly, enable cookies in your browser. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Penn West re-stated its results on Sept. 18 after discovering $300-million in expenses were misclassified. In the past decade, Penn West shares have lost 93% of their value, while Canadian Natural has gained 250% during same period. The review is ongoing and Penn West said the numbers may change. Where it once had operations in four provinces, it now operates only in Alberta. Calgary-based Obsidian Energy Ltd. and three former employees are facing U.S. Securities and Exchange Commission charges for their roles in an alleged accounting fraud – issues the company says it flagged three years ago and has fixed. They had a lot in common: Both grew up in small-town America (Mr. Roberts hails from Monahans, a town of 6,000 in west Texas), both spent their youths working in oil fields, both started their careers at Texaco, which created “a fraternity of sorts … and gives you a certain imprint,” Mr. Roberts said. "The audit committee and its independent advisers are examining certain entries which appear to have been made to reduce operating costs and increase the company's reported capital expenditures and royalty expense, and that appear to have been made without adequate supporting documentation," the company said in a statement. By continuing to use our site, you agree to our Terms of Service and Privacy Policy. There was an error, please provide a valid email address. Activist investors demanded a change in management. The Calgary-based company has also hired a forensic accounting firm.

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