Warburg Pincus-Backed Canbriam Energy Said to Weigh IPO in 2017

  • Discussions come amid some signs of life in energy IPOs
  • Calgary-based E&P company said to be valued at $1 billion

Warburg Pincus-backed Canbriam Energy Inc. is weighing an initial public offering as early as next year, people with knowledge of the matter said, as signs of life return to the embattled energy market.

The Calgary-based producer had weighed going public in 2014 before volatility in energy and equity markets delayed the plans. Canbriam has renewed discussions at the board level about the possible IPO, said the people, who asked not to be identified because the information is private. The company is valued at more than $1 billion, they said.

A decision hasn’t been made and the company has yet to hire advisers, the people said.

A representative for New York-based Warburg Pincus declined to comment. Representatives for Canbriam and private equity firm ARC Financial Corp., which participated in the investment that Warburg Pincus led in 2008, didn’t immediately respond to requests for comment.

The companies are considering the IPO as other energy producers pursue offerings. Shares of Extraction Oil & Gas Inc. have climbed 15 percent since the Denver-based company made its trading debut last week in New York. Brookfield Asset Management Inc., Canada’s largest alternative asset manager, is weighing an IPO of methane producer Ember Resources Inc. next year, people familiar with the matter said this week.

The last Canadian energy IPO was Seven Generations Energy Ltd.’s offering in October 2014, according to data compiled by Bloomberg.

Canbriam, formed in 2007, is an exploration and production company focused on unconventional oil and gas plays, primarily in Western Canada. The company’s operations currently produce roughly the equivalent of 27,000 barrels of oil per day.

Warburg Pincus has made several follow-on investments in Canbriam since the 2008 deal, according to the private equity firm’s website.

Canbriam’s other backers include Ontario Teachers’ Pension Plan, GE Asset Management Inc. and BlackRock Inc., according to its website.