Market Chatter: Waterous Energy Banks Nearly US$1 Billion to Aggregate Small Canadian Oil Producers
Waterous Energy Fund has raised nearly US$1 billion to invest in Canada's oil-and-gas sector, aiming to replicate its consolidation strategy with Strathcona Resources. The Calgary-based firm completed its Waterous Energy Fund III with C$1.4 billion (about $978 million), similar to its debut fund in 2018. The fund's first investment was a majority stake in Greenfire Resources, accounting for 30% of its capital. Adam Waterous has taken on the role of executive chairman at Greenfire, alongside his position at Strathcona.
Waterous Energy Fund has raised nearly US$1 billion to invest in Canada's oil-and-gas sector, as the private-equity firm plans to repeat with another producer a consolidation strategy it followed with Strathcona Resources in its previous fund, The Wall Street Journal reported Monday.
The WSJ said the Calgary, Alberta-based firm has wrapped up its Waterous Energy Fund III with 1.4 billion Canadian dollars, equivalent to about $978 million, virtually the same amount it collected for its debut fund that closed in 2018 and was invested entirely in Strathcona. It noted Waterous raised an additional C$700 million to fund Strathcona's acquisitions.
Waterous, The WSJ noted, last year acquired a majority stake through two separate stock purchases in publicly-traded Greenfire Resources , an oil-sands operator in Alberta's Athabasca region. The investment was the firm's first from the new fund and accounted for roughly 30% of the fund's capital, said Adam Waterous, the private-equity firm's managing partner and chief executive.
Waterous Energy has appointed six new members to Greenfire's board and a new president, while Adam Waterous became the company's executive chairman, a position he also holds at Strathcona.
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