Warburg Pincus has recapitalized Endurance Energy Ltd., an early-stage exploration and production company. The buyout shop now holds a majority stake in the company, and may invest up to C$155 million to support growth efforts. Specific terms of the recap were not released. Endurance is focused on shallow natural gas assets in the Western Canadian Sedimentary Basin.
Endurance Energy Ltd. (“Endurance” or “the Company”), an early-stage exploration and production company focused on the acquisition and development of shallow natural gas assets in the Western Canadian Sedimentary Basin (“WCSB”), today announced that it has recapitalized the company with an investment from Warburg Pincus, a leading global private equity firm focused on growth investing.
Warburg Pincus, which now owns a majority stake in the Company, has agreed to the terms under which it would make additional investments of up to C$155 million to support its growth. Several of the existing shareholders of Endurance, including management and select board members, have agreed to make additional investments into the recapitalized Company in addition to rolling over their existing shares.
Founded in 2008, Calgary-based Endurance operates in southern Alberta. Endurance’s management team, led by Chairman Derek Evans and Chief Executive Officer (CEO) Dennis Lawrence, has extensive experience and success in this part of the basin at several other exploration and production companies including Focus Energy Trust and Renaissance Energy Ltd.
“The recapitalization of Endurance marks the next step in the development and growth of the Company,” said Dennis Lawrence, Endurance’s CEO. “Partnering with an investor the caliber of Warburg Pincus, with its deep industry experience and financial resources, gives us an even greater ability to execute our business plan and grow through the acquisition and development of shallow natural gas assets in the WCSB.”
“We are pleased to be partnering with Dennis and the rest of the Endurance team and look forward to working closely with them to support the Company’s growth plans,” said David Krieger, a Warburg Pincus Managing Director and Director of Endurance. “We believe the Company is well-positioned to economically acquire and develop shallow gas assets in the Western Canadian Sedimentary Basin over the coming years.”
Warburg Pincus’ investment in Endurance brings to six the total number of Canadian energy companies currently in its portfolio, which also includes Black Swan Energy, Canbriam Energy, MEG Energy, Osum Oil Sands and Velvet Energy.
About Endurance Energy
Founded in 2008, Calgary-based Endurance Energy is an early-stage exploration and production company focused on the acquisition and development of natural gas assets in the Western Canadian Sedimentary Basin (“WCSB”). Specifically, Endurance’s area of focus is southern Alberta and Saskatchewan where the Company’s use of horizontal drilling and completion techniques and strong operational discipline are expected to deliver an attractive risk/reward profile.
About Warburg Pincus
Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $35 billion in assets under management. Its active portfolio of more than 130 companies is highly diversified by stage, sector and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 13 private equity funds which have invested more than $40 billion in over 650 companies in more than 30 countries.
For more than two decades, the firm’s energy group has provided over $6 billion of equity for companies around the world involved in oil and gas exploration and production, midstream, power generation, oilfield technology and related-services, and alternative energy development. Warburg Pincus has been the lead investor in several dozen energy companies including Antero Resources, Bill Barrett Corporation, Encore Acquisition Company, ElectroMagnetic GeoServices, Fairfield Energy, Kosmos Energy, Laredo Petroleum, Newfield Exploration, Spinnaker Exploration and Targa Resources.
The firm is headquartered in New York with offices in Amsterdam, Beijing, Frankfurt, Hong Kong, London, Luxembourg, Mauritius, Mumbai, San Francisco, Sao Paulo and Shanghai.