Investors Continue to Climb into Canadian Energy Space
March 06, 2014
Private equity firms made more investments in Canadian energy companies in 2013 than in any year going back to the beginning of 2007, according to the PitchBook Platform. The lion's share of activity (65%) has been focused in Alberta, which is home to several shale formations that could be comparable in size to some of the largest U.S. deposits. 2013 activity (30 deals) effectively doubled the activity in 2009 (14), the low-point in the timeframe, and leapfrogged two relatively strong years in 2011 (28) and 2008 (27).
Investors have been more keen in recent years to making control investments in Canadian energy companies. Growth deals, which were popular in 2010 (comprising 41% of all deal activity), have decreased incrementally every year since, to only 16% of all deals in 2013. Also noteworthy was a significant upswing in activity in the energy services industry last year. After comprising only 4% of activity in 2012 and 7% in 2011, energy services investments surged to 27% in 2013, taking away a significant chunk of exploration, production and refining deal activity, which decreased from 68% in 2012 to only 40% last year.
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