Enercapita is pleased to announce that it has reached the milestone of $110 million in subscribed capital. Enercapita continues to have success raising capital in the current difficult market and has been steadily increasing its institutional and UHNW investor base as it has proven out its low decline, hedged, unlevered, opportunistic acquisition strategy. Enercapita’s business model has put it in a position of strength during this period of low commodity prices. With a strong balance sheet, disciplined hedging strategy, and a stable, low decline asset base, Enercapita is well positioned to grow. In addition, Enercapita’s financial hedges protect its cash flow and reduce earnings volatility. Finally, the low decline production base requires minimal maintenance capital and generates significant free cash flow.
Enercapita believes that a significant portion of the oil and gas industry will remain in financial distress in the second half of 2016 and into 2017, which will continue to provide opportunities for Enercapita to acquire high quality assets that meet its investment criteria on a counter cyclical basis.
About Enercapita: Enercapita is an energy fund focused on low risk exploitation and optimization of existing production. The fund is an RRSP eligible investment vehicle that streams the cash flow from its production directly to its investors on a priority basis. Enercapita is part a group of funds that began in late 2007 that has grown into a series of alternative vehicles with over $400M in assets in farmland, SME private equity, energy (production & midstream infrastructure) and private debt. As managers, the group’s principals seek to deliver superior investment returns with lower volatility than public markets. In practice this means investments with both compelling macro drivers (favourable underlying supply/demand situations) and micro drivers (margin of safety in the form of discounted asset prices, ability to acquire cash flow cheaply).
For more information, please contact:
Greg Tooth, Co-Founder
Stephen Johnston, Co-Founder
Forward Looking Information; This news release may contain certain information that is forward looking and, by its nature, such forward-looking information is subject to important risks and uncertainties. The words “anticipate,” “expect,” “may” “should” “estimate,” “project,” “outlook,” “forecast” or other similar words are used to identify such forward looking information. Those forward-looking statements herein made by Enercapita, if any, reflect Enercapita’s beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those anticipated or predicted in these forward-looking statements, and the differences may be material. Factors which could cause actual results or events to differ materially from current expectations include, among other things: risks associated with the ownership and operation of businesses, including fluctuations in interest rates; general economic conditions; supply and demand for businesses; competition for available businesses; changes in legislation and the regulatory environment; and international trade and global political conditions. Readers are cautioned not to place undue reliance on any forward-looking information contained in this news release (if any), which is given as of the date it is expressed herein. Enercapita undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise.