Published: November 23, 2022 |

[Click image to enlarge]

KKR, a private equity firm and the majority owner of the Canadian oil and gas producer Westbrick Energy, is reportedly planning to sell Westbrick in a potential transaction valued at between C$1.5 billion ($1.13 billion) and C$2 billion ($1.5 billion).

The private equity firm aims to finalize an agreement with a potential buyer by the end of the year, or may retain the company if it does not receive suitable offers, reported Reuters.

KKR has been a majority owner of Westbrick for a decade and has invested around C$250 million in Westbrick when it was a smaller producer in 2012.

The increase in oil and gas prices has led private equity firms to sell out their energy investments after many were left stranded for longer than the usual three to five years.

The proposed sale of Westbrick marks KKR’s exit from the Canadian oil and gas business.

Apart from Westbrick, KKR also invested in other businesses in Canada, including gas processing assets and a stake in the Coastal GasLink pipeline under construction.

“Anyone who knows me knows that Westbrick has been for sale every day since our existence. It is not surprising to see interest in acquiring the company, and did not respond to further questions,” Westbrick Chief Executive officer Ken McCagherty told Reuters via email.

Westbrick has produced 36,000 barrels of oil equivalent per day (boepd) last year, with an aim to reach 50,000boepd by June 2022.

According to Sayer Energy Advisors, KKR’s plans to sell Westbrick builds on a 53 percent decline in merger and acquisition activity among Canadian oil and gas companies in the first half of this year.

Source: NS Energy

About KKR
KKR is a leading global investment firm that offers alternative asset management and capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of The Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries.

To stop by KKR’s website, CLICK HERE

Be in-the-know when you’re on-the-go!