CPPIB and Encino Energy to invest $1.25bn to buy US oil and gas assets

Canada Pension Plan Investment Board (CPPIB) and Encino Energy have reached an agreement to collectively invest up to $1.25bn in their newly announced collaboration Encino Acquisition Partners (EAP) to acquire oil and gas assets in the US.

Investment management company CPPIB has committed up to $1bn to EAP, while Encino is expected to invest $25m under the newly announced arrangement.

EAP is mandated to acquire assets with an established base of production in mature basins across the lower 48 states of the US.

CPPIB Natural Resources managing director and head Avik Dey said: “Our commitment to EAP allows us to efficiently expand our natural resources portfolio in our target US energy markets, further contributing to the diversification of the CPP Fund.”

Encino is responsible for handling EAP-owned acquisitions and the operation of assets.

Encino Energy CEO Hardy Murchison said: “As the oil and gas industry continues to rationalise, we see the opportunity to build a world-class oil and gas company with a diverse portfolio of high-margin assets. 

“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.”

Encino Energy is a US-based oil and gas company with leasehold and mineral interests in multiple basins across the country, with operations currently in the Anadarko Basin.

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Image: Encino Energy will initiate, assess and implement the acquisitions undertaken by EAP. Photo: courtesy of rsvstks / freeimages.com.