Insights

TPG Rise Climate Acquires Aurora Energy Research from CGE Partners

DETAILS

- TPG has announced the acquisition of a majority stake in Aurora Energy Research from CGE Partners. - Aurora specializes in providing critical intelligence to energy market participants through its proprietary data and software platform. - The company was founded in 2013 and has expanded to serve over 1,000 institutions in more than 40 markets with 17 offices globally. - CGE will reinvest significantly in Aurora, demonstrating confidence in its growth trajectory. - Aurora's CEO, John Feddersen, will also invest alongside 22C Capital. - Feddersen stated that the transaction marks an exciting chapter for Aurora, combining its momentum with TPG's climate investing leadership. - CGE's support has been instrumental in Aurora's evolution into a global software and data analytics platform. - Nick Heslop, Managing Partner at CGE, praised Aurora's leadership and the success of their partnership. - TPG Rise Climate expects strong growth prospects for Aurora, particularly in the US and Asia. - The firm believes that increased data visibility will be a strategic advantage within the energy value chain. - Kevin Black from 22C expressed excitement about investing in Aurora's next growth phase. - Arma Partners advised on the transaction, which is subject to customary conditions and regulatory approvals.

COMPANIES

TPG, CGE Partners, Aurora Energy Research, 22C Capital

TAGS

Power

Strathcona Resources Ltd. Announces Intention to Commence Take-Over Bid to Acquire MEG Energy Corp.

DETAILS

- Strathcona Resources Ltd. intends to commence a take-over bid for MEG Energy Corp. offering 0.62 of a Strathcona share and $4.10 in cash for each MEG share not already owned by Strathcona or its affiliates. - The total consideration represents $23.27 per MEG share, reflecting a 9.3% premium based on MEG's closing price on May 15, 2025. - The offer will not be subject to any financing condition and is expected to be funded through a bridge financing commitment from lenders. - Waterous Energy Fund, which holds 79.6% of Strathcona shares, plans to increase its investment in Strathcona by subscribing to 21.4 million additional shares. - Upon completion, Strathcona would have approximately 379 million shares outstanding and around $1.5 billion in net debt. - The combined business would be owned approximately 56.5% by Strathcona shareholders, 37.8% by MEG shareholders, and 5.6% by Waterous Energy Fund III. - Strathcona identifies $175 million in potential annual synergies from the merger. - Strathcona acquired around 9.2% of MEG shares through open market purchases before proposing the combination to MEG's board. - The MEG board indicated no interest in pursuing the merger with Strathcona as of May 13, 2025. - Strathcona plans to file the formal offer and bid circular within two weeks. - The offer is expected to be open for at least 105 days unless extended or withdrawn. - Certain conditions must be satisfied for the offer, including regulatory approvals and the successful deposit of MEG shares. - Strathcona seeks to acquire any remaining MEG shares through compulsory acquisition if conditions are met. - The completion of the additional investment from Waterous will be subject to certain customary conditions and is expected within 45 days from the offer commencement. - Scotiabank and TD Securities are advising Strathcona on the offer while Blake, Cassels & Graydon LLP and Skadden, Arps, Slate, Meagher & Flom LLP provide legal counsel. - Strathcona focuses on thermal oil and enhanced oil recovery, aiming for significant growth in the Canadian market. - This announcement does not constitute a formal offer but provides critical details regarding the potential merger and its financial implications. - Readers are encouraged to review the formal offer documents when available, which will contain important information about the offer and the companies involved.

COMPANIES

Strathcona Resources Ltd., MEG Energy Corp., Waterous Energy Fund, Waterous Energy Fund III, Scotiabank, TD Securities, Blake, Cassels & Graydon LLP, Skadden, Arps, Slate, Meagher & Flom LLP, Torys LLP, Laurel Hill Advisory Group

TAGS

oil and gas

Doral Renewables Secures $1.5 Billion of Debt and Tax Equity Financing for the Completion of Mammoth Solar

DETAILS

- Doral Renewables has secured $1.5 billion in debt and tax equity financing for the Mammoth Solar projects in Indiana. - The financing supports the Mammoth South, Central I, and Central II solar projects, each with a capacity of 300 MWac. - The projects are part of the larger 1.3 GW Mammoth Solar facility, capable of powering around 275,000 households per year. - The solar systems will utilize 20,000 tons of Indiana steel and over 1 million US-made solar modules. - Doral plans to implement agrivoltaics practices, allowing farmers to engage in traditional farming activities alongside solar energy generation. - Each project has long-term Power Purchase Agreements with utilities and aims to begin commercial operations in Q4 2026. - KeyBanc Capital Markets, Banco Santander, and HSBC acted as Coordinated Lead Arrangers for the construction debt financing. - The financing includes $412 million in construction-to-term loan facilities, $614 million in tax equity bridge loans, and a $259 million letter of credit facility. - The financing was completed concurrently with a $200 million tax equity commitment from Truist Bank for the Mammoth South project. - Doral's CFO, Evan Speece, expressed excitement about closing these financings and continuing partnerships with the banks involved. - Nadav Hazan from KeyBanc Capital Markets highlighted the trust built with Doral's management team over time. - Nuno Andrade from Santander acknowledged their strong relationship with Doral and the significance of this achievement. - Paul Snow from HSBC emphasized their ongoing commitment to supporting Doral and renewable energy projects in the U.S. - Chris Nygren from Truist expressed enthusiasm for their tax equity commitment with Doral and future collaboration opportunities. - Marathon Capital Markets served as the tax equity advisor, while McDermott Will & Emery acted as legal counsel for Doral on financing matters. - Doral Renewables is a renewable energy developer based in Philadelphia with a focus on integrating agrivoltaics in its projects. - The company has a development portfolio of nearly 18 GW, including 400 MW in operation and 950 MW under construction. - Doral operates in 22 states and has secured over $2.5 billion in long-term power purchase agreements.

COMPANIES

Doral Renewables LLC, KeyBanc Capital Markets, Inc., Banco Santander, S.A., HSBC Bank USA, N.A, Truist Bank, Marathon Capital Markets, McDermott Will & Emery, CCA Group, Milbank LLP, Norton Rose Fulbright

TAGS

Solar

Keyera Announces 2025 First Quarter Results and Sanctions KFS Frac III Expansion

DETAILS

- Keyera Corp. announced its first quarter financial results for 2025, highlighting a total adjusted EBITDA of $298 million. - Distributable cash flow for the quarter was reported at $190 million, or $0.83 per share. - Net earnings increased significantly to $130 million compared to $71 million in the first quarter of 2024. - The fee-for-service realized margin rose to $262 million, reflecting continued growth from the Gathering and Processing segment and near-record contributions from the Liquids Infrastructure segment. - The Gathering and Processing segment realized a margin of $109 million, benefiting from strong performance in the North region gas plants. - The Liquids Infrastructure segment achieved a near-record realized margin of $152 million, driven by long-term contracted volumes and high utilization of fractionation services. - The Marketing segment reported a realized margin of $78 million, which was lower than the previous year's $114 million due to reduced sales volumes and an outage at Alberta EnviroFuels. - Keyera completed a seven-week outage at Alberta EnviroFuels, increasing the expected impact on annual Marketing segment realized margin to approximately $50 million. - The company's financial position remained strong with a net debt to adjusted EBITDA ratio of 2.0, below the targeted range of 2.5 to 3.0. - The guidance for 2025 remains unchanged, with expectations for Marketing segment realized margin between $310 and $350 million. - Growth capital expenditures are projected to be between $300 million and $330 million, aimed at advancing various infrastructure projects including KFS Frac III and KAPS Zone 4. - Keyera has sanctioned the KFS Frac III project to expand fractionation capacity by 47,000 barrels per day at an estimated cost of $500 million. - The KFS Frac II Debottleneck project has also been sanctioned, adding 8,000 barrels per day of capacity for $85 million. - Keyera's fractionation capacity is expected to increase by approximately 60% once these projects are completed, positioning the company to meet growing basin needs. - The Wapiti gas plant is projected to achieve utilization of effective capacity in 2026, driven by strong customer demand. - Keyera continues to evaluate opportunities to expand rail and logistics capabilities and further liquids extraction projects. - The company's CEO expressed confidence in the progress toward achieving a 7-8% annual growth in fee-based adjusted EBITDA through 2027.

COMPANIES

Keyera Corp., Alberta EnviroFuels, KAPS

TAGS

oil and gas

WHITECAP RESOURCES INC. CLOSES THE VEREN COMBINATION CREATING A LEADING CANADIAN OIL AND NATURAL GAS PRODUCER, AND INCREASES PRODUCTION GUIDANCE

DETAILS

- Whitecap Resources Inc. has successfully closed its combination with Veren Inc., becoming the seventh largest oil and natural gas producer and the fifth largest natural gas producer in Canada. - Whitecap is now the largest Alberta Montney and Duvernay landholder and a significant light oil producer in Saskatchewan. - The company plans to leverage the combined asset base and technical expertise to enhance profitability and returns to shareholders. - The management team from Whitecap will lead the combined company along with an eleven-member Board of Directors. - Whitecap has entered into agreements to dispose of certain non-strategic assets for $270 million, which include medium oil production and a working interest in a natural gas facility. - The asset dispositions are expected to close by June 30, 2025, and proceeds will be directed toward the balance sheet. - The average production forecast for 2025 has been increased to 295,000 to 300,000 boe/d, with capital expenditures of approximately $2.0 billion. - For the second half of 2025, production is expected to average 363,000 to 368,000 boe/d on capital expenditures of approximately $1.1 billion. - About 75% of the second half capital budget will be allocated to Montney and Duvernay assets. - The company plans to drill 67 wells, with the majority expected to come on stream in the second half of the year. - Six unconventional rigs are currently running in areas with established technical understanding and available infrastructure capacity. - Drilling and completion operations on the acquired lands have commenced, aimed at improving capital efficiency and value generation. - In Musreau, a six-well pad is planned for late Q2, with completions in early 2026. - In Kakwa, completions for a four-well pad are scheduled to commence late in Q2 2025, with production expected in Q3. - The Frobisher program in eastern Saskatchewan will focus on drilling 25 wells in the second half of the year. - Whitecap plans to drill 91 conventional wells in Saskatchewan and 10 in Alberta during the second half. - The company has entered into a new $3 billion unsecured credit facility, increasing total credit capacity to $4.6 billion. - Net debt is expected to be approximately $3.4 billion by year-end, resulting in a net debt to annualized funds flow ratio of around 1.0 times. - Whitecap prioritizes balance sheet strength and aims for capital expenditures and dividends to be covered by funds flow. - The integration of Veren's assets is underway, with an expected realization of $200 million in initial synergies over the next six to twelve months.

COMPANIES

Whitecap Resources Inc., Veren Inc., Pembina Gas Infrastructure

TAGS

oil and gas

Tamboran Announces US$55.4 Million PIPE of Common Stock to Fund Ongoing Drilling Activities to Reach Plateau Production From the Proposed SS Pilot Project

DETAILS

- Tamboran Resource Corporation has entered into subscription agreements to issue approximately 3.1 million shares of Common Stock in a Private Investment in Public Equity PIPE to institutional investors at a price of US$17.74 per share. - This price represents a 15% discount to the closing price on May 12, 2025. - Tamboran expects to receive gross proceeds of approximately US$55.4 million, before deducting placement agent fees and other offering expenses. - The initial US$44.4 million of the PIPE is expected to close on May 16, 2025, subject to customary closing conditions. - The remaining US$11.0 million is subject to approval by Tamboran’s shareholders and satisfaction of other customary closing conditions. - Following the completion of the PIPE, Tamboran expects to be fully funded to drill and complete the remaining three wells for the proposed 40 MMcf/d Shenandoah South Pilot Project. - First gas production is planned for mid-2026, depending on weather and regulatory approvals. - Flow testing of the SS-2H sidetrack well has commenced after an extended soaking period. - The IP30 flow test results are expected to be announced in June 2025. - After securing funding, Tamboran plans to drill three additional wells starting in mid-2025 for the SS Pilot Project. - The company aims to stimulate the four wells in a single campaign for operational efficiencies planned for late 2025 or early 2026. - One of the stimulated wells will be flow tested, while the others will be cased and soaked ahead of production. - This PIPE is supported by a US$10 million investment from Formentera Partners and backed by existing shareholders. - Funds from the PIPE will be used for drilling the remaining wells for the Pilot Project, funding the Sturt Plateau Compression Facility, and general working capital. - BofA Securities is the sole placement agent for the PIPE. - The shares issued in the PIPE have not been registered for sale in the United States under the Securities Act of 1933. - Tamboran has committed to filing a registration statement for resale of the shares. - Tamboran commenced soaking of the SS-2H ST1 well in March 2025 to enhance gas production capability. - The soaking process allows water to imbibe into the rock, improving gas permeability. - The completion of the capital raise positions Tamboran to deliver first gas by mid-2026.

COMPANIES

Tamboran Resource Corporation, Formentera Partners, BofA Securities, Bechtel Corporation

TAGS

fundraising

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