Crestone Peak Resources LLC, an investment vehicle formed by Canada Pension Plan Investment Board (CPPIB) and The Broe Group, has closed its previously announced acquisition of Encana Corp‘s Denver Julesberg Basin oil and gas assets in Colorado. With the deal, announced last October at US$900 million, CPPIB has taken a 95 percent stake in the acquired property. The natural resources group of CPPIB, which holds nine investments valued at $1.4 million, has been engaged in four deals so far this year, including the Crestone acquisition and Wolf Midstream Inc‘s proposed buy of a 50 percent interest in Alberta’s Access Pipeline.
Canada Pension Plan Investment Board and The Broe Group Complete Acquisition of DJ Basin Oil & Gas Assets
Acquisition Completed Through Jointly Formed Entity, Crestone Peak Resources
TORONTO, ONTARIO and DENVER, COLORADO–(Marketwired – July 29, 2016) – Crestone Peak Resources LLC (Crestone), a Canada Pension Plan Investment Board (CPPIB) and The Broe Group jointly formed entity, closed the acquisition of the previously announced Denver Julesberg (DJ) Basin oil and gas assets in Colorado from Encana Oil & Gas (USA) Inc., a wholly owned subsidiary of Encana Corporation (Encana). Crestone is 95% owned by CPPIB and 5% by an affiliate of The Broe Group. The effective date of the transaction is April 1, 2015.
CPPIB’s Natural Resources group invests directly in companies, strategic partnerships and direct resource interests in energy, merchant power generation, metals and mining, and renewable energy. At the end of Fiscal 2016, the Natural Resources Portfolio consisted of nine direct investments, valued at C$1.4 billion. To date in Fiscal 2017, the Natural Resources group has announced C$4.1 billion of transactions in: Crestone Peak Resources LLC, Wolf Infrastructure Inc., Teine Energy Ltd., and LongPoint Minerals, LLC.
About Canada Pension Plan Investment Board
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 19 million contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City and São Paulo, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At March 31, 2016, the CPP Fund totalled C$278.9 billion. For more information about CPPIB, please visit www.cppib.com or follow us on LinkedIn or Twitter.
About The Broe Group
The Broe Group, with headquarters in Denver, Colorado, is a privately-owned diversified enterprise with a multi-billion dollar asset base. The organization owns and/or manage commercial real estate and other businesses across North America. Its transportation affiliate, OmniTRAX, Inc., is a leading transportation services firm with railroad, port and terminal operations, and is the 2nd largest operator of short-line railroads in the U.S. OmniTRAX and Broe manage industrial hubs adjacent to affiliate rail operations including the Great Western Industrial Park in Northern Colorado and sites in Brownsville, Texas; Sand Springs, Oklahoma; Decatur, Illinois and Savannah, Georgia. Its energy affiliate, Great Western Oil & Gas Company, is a top 10 driller in Colorado and among the top 100 drillers in the U.S. The Broe Group has several other investment affiliates, including Three Leaf Ventures, which is focused on innovative healthcare technology start-ups. For more information, see www.broe.com.
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Photo courtesy of Encana Corp