Brookfield Said to Weigh IPO of Methane Producer Ember Next Yearby
Brookfield Asset Management Inc., Canada’s largest alternative asset manager, is weighing an initial public offering of natural-gas producer Ember Resources Inc. next year, people with knowledge of the matter said.
Brookfield will likely seek a valuation of more than C$1 billion ($762 million) for the Calgary-based company in an initial stock sale, said the people, who asked not to be named because the information is private.
A representative for Toronto-based Brookfield declined to comment. A representative for Ember didn’t immediately respond to a request for comment.
The companies are considering the IPO as some signs of life return to the embattled energy sector. Shares of Extraction Oil & Gas Inc. have climbed more than 13 percent since the Denver-based company made its trading debut last week in New York.
Brookfield led a group to acquire Ember in 2011 for about C$106 million, according to data compiled by Bloomberg. Ember, which produces coalbed methane, acquired assets from Apache Corp. in 2013 for about $214 million and from Encana Corp. last year for about C$605 million to build up its production, according to the data.
Ember’s core assets are in Alberta’s Horseshoe Canyon coalbed methane fairway, with 2.2 million net acres of land inventory, according to its website. The company’s production is about 300 million cubic feet per day of natural gas extracted from coal.