Ontario Teachers’ Pension Plan, Toronto, on Tuesday announced it has agreed to acquire Heritage Royalty LP from Cenovus Energy for C$3.3 billion ($2.67 billion) in cash.
The agreement was led by Teachers’ Natural Resources Group, the C$154.4 billion pension fund’s commodity management subsidiary.
Heritage holds about 4.8 million gross acres of royalty interest and mineral fee title lands in Alberta, Saskatchewan and Manitoba, and overriding royalties on 500,000 acres at Cenovus’ Pelican Lake and Weyburn properties, two long-life oil projects.
Heritage Royalty had revenues of about C$320 million in 2014 based on average production of about 14,800 barrels of oil equivalent per day, OTPP said in a news release.
OTPP had 8% of its assets in natural resources as of Dec. 31.
Deborah Allan, OTPP spokeswoman, could not be immediately reached for further details.