The Canada Pension Plan Investment Board has partnered with Encino Energy to form Encino Acquisition Partners, which will focus on oil and gas acquisition opportunities in the United States.
CPPIB has committed up to US$1 billion while Encino has committed US$25 million. As part of the agreement, Encino will originate, evaluate and executive acquisition opportunities, as well as operate the assets owned by Encino Acquisition Partners.
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“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 and head of natural resource at CPPIB, in a news release.
“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,” said Hardy Murchison, chief executive officer of Encino. “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.”
Michael Hill, CPPIB’s managing director of natural resources will act as lead director on behalf of the pension fund.
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