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Strathcona Resources Ltd T.SCR

Alternate Symbol(s):  STHRF

Strathcona Resources Ltd. is a Canada-based oil and gas producers with operations focused on thermal oil, enhanced oil recovery and liquids-rich natural gas. The Company has three operations, including Lloydminster Heavy Oil, Cold Lake Thermal Oil and Montney. The Lloydminster Heavy Oil segment has multiple large oil-in-place reservoirs with existing and expanding enhanced oil recovery (EOR) opportunities primarily located in southwest Saskatchewan. Its Saskatchewan thermal properties rely on the same steam-assisted gravity drainage (SAGD) processes as its Cold Lake Thermal properties. It is a producer in the Cold Lake region of Alberta. Its operations include thermal oil producing assets at Lindbergh, Orion and Tucker, with production from SAGD oil assets. Its Montney development is positioned in some of the active regions in the Montney basin, the condensate-rich Kakwa, Grande Prairie, and Groundbirch regions, and produces liquids-rich gas.


TSX:SCR - Post by User

Post by wellheeledon Nov 10, 2023 10:22am
184 Views
Post# 35728208

Waterous/WEF confusion?

Waterous/WEF confusion?Adam Waterous is the general partner of the Waterous Energy Fund.  The GP runs the investment portfolio of the WEF while the limited partners put up the capital and effectively own the stock in SCR. Waterous likely has limited exposure to the price moves in SCR other than how it relates to his performance fee. 

In all likelihood, the performance fee for the general partner was crystalized on Strathcona going public.  Typically a private equity performance fee is 20% of the gain (in addition to a 2% annual management fee).  If the performance fee is around 20% of the deal price gain then Waterous' performance fee would be around $1B+ in addition to an annual management fee of about $100M (if it is 2%). These fees would be paid by the limitied partners. He has made his money without risking his own capital - that's private equity - use other people's money to make your own.   Smart? Yes.  Shareholder friendly? That remains to be seen..  

Waterous' recent firing as board chair at the Banff Centre has also clouded his management credibility in running a public company.  The impact of that situation on SCR is unclear.  
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