The fund has earned more than $1 billion since first backing the producer in 2009
A more than decade-old wager on a Calgary oil and gas producer has returned over $1bn to CPP Investments, which says it is staying in for the next phase of growth, according to the fund's Insights Institute.
The fund first backed Teine Energy in 2009 with a $204m equity investment, then added $150m to fund expansion, the Insights Institute reported.
Teine has since grown to produce roughly 45,000 barrels of oil equivalent per day, up from 1,000 in 2011, making it one of Western Canada's largest private oil and gas producers, with operations across Alberta and Saskatchewan.
CPP Investments, which manages approximately $119.2bn in Canadian assets, attributes that scale to deploying capital when rivals could not.
"Having capital at the right time, countercyclically in our business, has added a tremendous amount of value to the company," said Jason Denney, chief executive of Teine Energy.
The defining move came after crude prices collapsed from 2014, the fund said.
In 2016, backed by CPP Investments' equity, Teine completed a $975m acquisition of Penn West's Saskatchewan assets that expanded its production base and drilling inventory.
Denney said competitors lacked "access to capital" when the Penn West asset became available.
His firm closed "a billion-dollar acquisition in a matter of six weeks," he said.
Teine added Repsol's Chauvin assets in 2022, bringing low-decline enhanced oil production plus midstream and marketing infrastructure, according to the Insights Institute.
"Energy is a cyclical business, but the real advantage comes from being able to invest through the cycle," said Bill Rogers, managing director, head of sustainable energies, real assets at CPP Investments.
Teine is now the largest producer in Saskatchewan's Viking play, which the fund calls one of the lowest-cost oil basins in North America, while its enhanced oil assets add steady cash flow.
Its next leg of growth sits in the Duvernay, a liquids-rich shale play it has built up over nearly a decade through land assembly and staged development, as per the fund.
Teine has invested approximately $5bn and paid about $1bn in royalties over 15 years, the company reported, and has cut emissions nearly 50 percent and spills over 50 percent since 2019.
CPP Investments framed the holding as evidence that patient ownership can become a strategic advantage in cyclical, capital-intensive industries.
