Seeking Alpha

KKR eyeing Canadian energy sector investment up to several billion dollars

  • KKR says it will open its first Canadian office next month in Calgary, the capital of Canada's oil patch, as it seeks to tap into growing demand for private-equity financing in the region and expand its presence in the global energy industry.
  • KKR Director Brandon Freiman, who will relocate from the NYC headquarters to start up the new office, is eyeing investment of $500M to "several billion dollars" over the next five years in upstream oil and gas production, midstream pipelines and related infrastructure as well as energy services businesses.
  • The planned investments will include providing financing instead of outright takeovers, KKR says.
  • Canadian energy names on the radar: SU, IMO, BTE, SOQ, ERF, CVE, COSWF, AAV, BXE, CNQ.
Comments (8)
  • jack20
    , contributor
    Comments (319) | Send Message
     
    Why not? The sector is extremely undervalued and will remain that way until one or more of the export pipelines is approved. First was Buffet, then Pickens, then Icahn, and now KKR. These guys have a nose a mile long when it comes to sniffing out value, and they also have patience!
    9 Jan 2014, 05:17 PM Reply Like
  • tyzo
    , contributor
    Comments (36) | Send Message
     
    BXE already has a couple of joint ventures on the go, with two Korean companies.
    Bring it on KKR.
    9 Jan 2014, 07:05 PM Reply Like
  • jack20
    , contributor
    Comments (319) | Send Message
     
    tyzo: Amen. Both Statoil and Repsol have a lot of $$ and are looking. It should be an interesting year to see what companies/markets they go after. Canada has to be #1.
    9 Jan 2014, 09:35 PM Reply Like
  • River18
    , contributor
    Comments (1941) | Send Message
     
    jack20:

     

    Good to hear that KKR is going to Calgary to stir the pot and light a fire under my Canadian energy names. Maybe they will buy very cheap assets to bring value for their shareholders. Many companies just need new funding to grow to the next level.
    9 Jan 2014, 10:49 PM Reply Like
  • River18
    , contributor
    Comments (1941) | Send Message
     
    jack20:

     

    I just by coincidence stumbled into where KKR is hard at work investing their money. Way to go.

     

    >In December, Calgary-based Torq secured a $250-million investment from private equity behemoth Kohlberg Kravis Roberts to fund an investment program that may include the development of additional terminals in Alberta.<

     

    http://bit.ly/1iopTBP

     

    I'm long: Canexus (OTC:CXUSF), Meg Energy (OTCPK:MEGEF),
    9 Jan 2014, 11:51 PM Reply Like
  • murjames
    , contributor
    Comments (128) | Send Message
     
    This could bode well for Legacy Oil and Lightstream Oil as Lightstream has property for sale that is top notch. I wonder if Brett Wilson has had a few beers with these guys? Would not be surprised. This could be the shot in the arm needed to set fire under the oil industry. Legacy and Lightstream are so undervalued that it stinks.
    10 Jan 2014, 10:32 AM Reply Like
  • jack20
    , contributor
    Comments (319) | Send Message
     
    murjames: Totally agree re Lightstream&Legacy but still feel there won't be much action until at least one export oil pipe is approved. Once that happens M&A activity will take off. Meanwhile we wait knowing full well we are holding value.
    10 Jan 2014, 02:30 PM Reply Like
  • River18
    , contributor
    Comments (1941) | Send Message
     
    jack20:

     

    I've been all day trading away in front of my computer because due to lack of work, I got to stay home. I had 10 sells and 7 buys at Vanguard, and 2 sells and 2 buys at my taxable account at Scottrade. I did buy 102 KMR shares today. So now they can get busy putting in more pipelines and finishing the Trans Mountain pipe to Vancouver, BC.
    10 Jan 2014, 03:48 PM Reply Like
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