Canadian Non-Operated Resources LP (CNOR), a newly founded Calgary oil and gas company, has secured an equity investment totaling $675 million. The deal includes a $300 million investment from U.S. resource-focused private equity firm Riverstone Holdings, with supplementary amounts coming from an unnamed Middle Eastern sovereign wealth fund, Canadian energy investment firm Grafton Asset Management Inc, and CNOR’s management team. Led by Richard Grafton, founder and CEO of Grafton, who has launched multiple Calgary-based energy investments, the company will pursue partnerships with top-tier operators to develop oil and gas assets in the Western Canadian Sedimentary Basin.
Riverstone Holdings and Investor Group to Invest up to approximately C$675 Million in Canadian Non-Operated Resources LP
Calgary, AB, New York, NY and London, UK (August 12, 2014) – Canadian Non-Operated Resources LP (“CNOR” or the “Company”), a newly-formed, Calgary-based oil and gas company today announced an equity commitment of up to approximately C$675 million, including C$300 million from funds managed by energy private equity firm Riverstone Holdings (“Riverstone”) and additional amounts from a Middle Eastern sovereign wealth fund, Grafton Asset Management Inc. (“Grafton”) investors, and the Company’s management team. The Riverstone commitment comprises up to C$200 million from Riverstone Global Energy and Power Fund V (“Fund V”) and up to C$100 million from Riverstone Energy Limited (“REL”).
CNOR will be led by industry veteran Richard Grafton, who has founded, built and led multiple Calgary-based energy investment banking boutiques. Mr. Grafton was the Co-Founder and Managing Director of FirstEnergy Capital, a leading independent energy focused investment bank, and is the Founder and Chief Executive Officer of Grafton Asset Management Inc., a Calgary-based oil and gas investment firm.
The new Company will seek to capitalize on a market environment in which there is an increasing demand for non-operating partner capital due to the vast and growing capital requirements inherent to full-scale development of unconventional resources. CNOR will pursue partnerships with top-tier operators to develop oil and gas assets in the Western Canadian Sedimentary Basin.
Mr. Grafton commented: “Our team is pleased to join with experienced partners like Riverstone, and we appreciate their support as we execute on our strategy to provide non-operated partner capital to top-tier Canadian producers.”
Robert Tichio, Partner at Riverstone, added: “Our significant equity commitment to Canadian Non-Operated Resources reflects the confidence that we have in Mr. Grafton and the entire CNOR team. We believe this new venture is well situated to capitalize on increasing resource development in Western Canada.”
Pierre Lapeyre and David Leuschen, Co‐Founders of Riverstone, said, “This investment builds upon our long-standing experience that there are a wide variety of attractive investment opportunities and strategies within the Canadian upstream sector. Canadian producers are experiencing the same balance sheet pressures that we have seen in the United States as a result of the increased capital intensity that comes with greater unconventional resource development. We believe CNOR’s technical capabilities and deep, local relationships will be very complementary to Riverstone’s and will provide access to proprietary investment opportunities.”
Since its IPO in October 2013, REL has invested in six energy companies spanning conventional and unconventional oil and gas activities in the Gulf of Mexico, the Continental U.S. and Western Canada.
About Riverstone Holdings LLC
Riverstone is an energy and power-focused private investment firm founded in 2000 by David M. Leuschen and Pierre F. Lapeyre, Jr. with approximately $27 billion of equity capital raised. Riverstone conducts buyout and growth capital investments in the exploration & production, midstream, oilfield services, power and renewable sectors of the energy industry. With offices in New York, London and Houston, the firm has committed approximately $26 billion to 109 investments in North America, Latin America, Europe, Africa and Asia.
About Riverstone Energy Limited
REL is a closed-ended investment company that invests exclusively in the global energy industry, with a particular focus on the exploration & production and midstream sectors. The company is uniquely positioned to benefit from the large number of investment opportunities being driven by the North American energy revolution and the continued growth in global energy demand. REL aims to capitalize on the opportunities presented by Riverstone’s energy investment platform. REL is a member of the FTSE 250 and its ordinary shares are listed on the London Stock Exchange, trading under the symbol RSE. To date, REL has invested in six energy companies spanning conventional and unconventional oil and gas activities in the Gulf of Mexico, the Continental U.S. and Western Canada.
For Riverstone Energy Limited:
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