November 06, 2015
The turbulence of oil and gas prices in recent years has left its mark on Calgary’s energy industry while attracting diverse investment strategies from stakeholders. In a piece exploring the plays of the private equity industry in this fluctuating environment, Lexpert turned to Torys’ Oil and Gas Practice partners Derek Flaman and Neville Jugnauth for their perspectives. Below is an excerpt of the article.
Derek Flaman of Torys LLP says deal making was slowed in the first half of 2015 by a significant gap between bid and ask prices for energy assets. But prolonged price weakness has softened asking prices in recent weeks. He adds that private equities are particularly suited to tough times in the oil patch because of their ability to conduct intensive analysis before taking controlling positions in carefully chosen companies.
“Since June, the dial has really been turned up,” says Neville Jugnauth, Flaman’s partner at Torys in Calgary. “Private equity fits the Calgary model and currently it’s driving the model.”
To read the full article, click here.