Waterous Energy Fund (WEF), a Calgary-based energy investment firm, has held a final close of its first fund, Waterous Energy Fund, exceeding its original target of $1 billion and hitting the fund’s hard cap of approximately $1.4 billion.
The firm is, “partners with a select group of institutional investors with extensive experience in oil and gas, including several of the world’s leading value investors,” said Adam Waterous, CEO. “We believe the North American oil and gas sector presents an opportunity-rich environment for our value-based approach to oil and gas investing, taking advantage of ‘special situations’ to generate attractive risk-adjusted returns for our partners.”
WEF is making later-stage control equity investments in established North American oil and gas companies with liquids-weighted, top-quality assets, but whose corporate entities have run into challenges. These special situations typically require recapitalizing, restructuring, and repositioning to unlock the assets’ underlying values. WEF is targeting investments requiring between $300 million and $500 million of equity capital and has already invested more than 60 percent of the Waterous Energy Fund’s capital in its first two investments, Strath Resources and Cona Resources.
Stikeman Elliott and Dechert served as fund formation counsel. Atlantic Pacific Capital served as the global placement agent and adviser to WEF.
WEF’s current portfolio includes Strath Resources, a high-growth Kakwa Montney condensate producer in Alberta, and Cona Resources, a long-life, low-decline, high–free cash flow, heavy oil producer in Saskatchewan.
