29 Jun Canada’s largest public pension fund commits $1 billion to US oil and gas acquisitions
Canada Pension Plan Investment Board (CPPIB) plans to invest US$1 billion in the US oil and gas industry through a partnership with Encino Energy.
The Encino Acquisition Partners (EAP) will focus on acquiring large, high quality assets with an established production base in mature basins across the lower 48 states of the US.
The agreement proposes that Encino will evaluate and execute acquisition opportunities as well as operate the assets purchased by EAP.
“Our commitment to EAP allows us to efficiently expand our natural resources portfolio in our target U.S. energy markets, further contributing to the diversification of the CPP Fund,” said Avik Dey, managing director, head of natural resources, CPPIB.
“We are pleased to work with Encino management, who have deep operational experience in the lower 48 states and have a proven track record in the successful development of oil and gas assets across the U.S.”
While Encino CEO Hardy Murchison said the current climate in the US oil and gas sector has raised a number of prime acquisition opportunities.
“As the oil and gas industry continues to rationalize, we see the opportunity to build a world-class oil and gas company with a diverse portfolio of high-margin assets,” Murchison said.
“Encino Acquisition Partners is the logical extension of Encino’s long-term strategy to employ outstanding people focused on driving long-term investor returns through the acquisition and exploitation of high quality assets.”