Canada Pension Plan Investment Board (CPPIB) and Encino Energy have joined forces to form Encino Acquisition Partners (EAP) to focus on the acquisition of oil and gas assets in the US.
CPPIB will provide up to $1bn and Encino has committed $25m for the new company to acquire assets.
EAP will use the funding to purchase large and quality assets with an established base of production in mature basins across the lower 48 states of the US.
Under the deal, Encino will initiate, assess and execute acquisition opportunities, as well as operate the assets owned by EAP.
CPPIB Natural Resources head and managing director 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.
“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 US.”
Encino CEO Hardy 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.”
Encino, which has more operations in the Anadarko Basin, holds leasehold and mineral interests in multiple US basins.
Based in Toronto, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments.