Seven Generations Energy Acquisition, Valuation, Funding & Investors

Seven Generations Energy was acquired by ARC Resources for $6B in February 2021, a 3.0x multiple on $2B of revenue.

Seven Generations Energy acquisition price

$6B

Acquired by ARC Resources · Feb 2021

Seven Generations Energy revenue at acquisition

$2B

Last twelve months · Feb 2021

Seven Generations Energy revenue multiple at acquisition

3.0x

EV/Revenue · Feb 2021

Cumulative funding Seven Generations Energy raised

$236M

across 1 funding round

Seven Generations Energy Overview

About Seven Generations Energy

Seven Generations Energy Ltd. is a Canadian energy company headquartered in Calgary, Alberta, founded in 2008. It developed liquids-rich natural gas and condensate in the Montney formation, mainly at its Kakwa River Project in west central Alberta and northeastern British Columbia, with its operations headquarters in Grande Prairie. The company earned its revenue from sales of natural gas, condensate and natural gas liquids. In its early years it was backed by private equity investors including ARC Financial, KERN Partners and Natural Gas Partners, and it later became a Toronto Stock Exchange listed company. It also took a minority interest in a proposed liquefied natural gas developer as part of efforts to secure export routes for its gas. ARC Resources acquired it in an all-share combination, after which it was amalgamated into ARC.


Founded

2008

HQ

CanadaCalgary

Status

Acquired

Customer focus

B2B

Revenue model

Product sales

Revenue

$106M (Dec 2013)

Valuation

$6B (acquired Feb 2021)

Sectors

Seven Generations Energy Acquisition

Seven Generations Energy was acquired by ARC Resources for $6B on 10 February 2021.

The acquisition price implies a 3.0x revenue multiple on $2B of revenue.

Before the acquisition Seven Generations Energy had raised $236M across 1 funding round.

ARC Resources and Seven Generations Energy announced a strategic all-share combination on February 10, 2021, valued at C$8.1 billion including net debt, creating Canada's largest condensate producer and third-largest natural gas producer. The deal positioned the combined entity as the biggest Montney play producer with expected 2021 production over 340,000 boe/d, including 138,000 bbls/d liquids and 1.2 Bcf/d gas. Seven Generations shareholders received 1.108 ARC shares per Seven Generations share. The transaction closed on April 6, 2021, with ARC issuing 369.4 million shares to acquire all outstanding Seven Generations shares, making it a wholly-owned subsidiary before amalgamation on May 1, 2021. ARC refinanced Seven Generations' senior notes using $1.0 billion in new unsecured notes and credit facility draws, achieving $50 million in annual interest savings and targeting net debt to funds from operations of 1.0-1.5x. Synergies were projected to deliver $110 million in annual cost savings by 2022 through efficiencies in operations, drilling, and market optimization. The combined company maintained ARC's $0.06 quarterly dividend, strong balance sheet with investment-grade rating potential, and focus on Attachie asset growth once deleveraging targets were met by year-end 2021. Grande Prairie became a key field operations hub alongside Dawson Creek and Drayton Valley.

Seven Generations Energy acquisition details
AcquirerDateTypePriceEV/Revenue
10 Feb 2021Strategic M&A$6B3.0x

Sources: newswire.ca

Seven Generations Energy Revenue

Seven Generations Energy's latest recorded revenue is $106M, as of its undisclosed-stage round in December 2013.

Seven Generations Energy revenue by funding round

Seven Generations Energy revenue and valuation multiple by funding round
DateRevenue *Stage
Dec 2013$106MUndisclosed stage

* Revenue (or ARR) figures are the values recorded alongside each funding round. Typically run-rate revenue at the time of the deal, or a reported LTM (last 12 months) revenue.

Seven Generations Energy Funding History

Seven Generations Energy has raised a total of $236M across 1 funding round.

Seven Generations Energy funding rounds

Seven Generations Energy funding rounds
DateStageInvestorsRaisedDeal Summary
Dec 2013Undisclosed stageAzimuth Capital Management$236MSeven Generations Energy raised C$251 million of equity in December 2013 through a brokered private placement to institutional and individual investors together with a smaller private placement to its employees. The placement was brokered by RBC Dominion Securities, Peters & Co., CIBC World Markets, Credit Suisse, TD Securities and Leede Financial Markets, which acted as agents rather than investors. Net proceeds were intended to finance drilling, completion and infrastructure investment to grow the company's Kakwa River Project. The company, backed by private equity firms since 2008, counted ARC Financial, Canada Pension Plan Investment Board, KERN Partners and Natural Gas Partners among its major investors at the time. It also increased the debt capacity of its revolving credit facility from C$60 million to C$150 million. Seven Generations is a Calgary-based developer of liquids-rich natural gas in the Montney formation, with its operations headquarters in Grande Prairie, Alberta, and was founded in 2008.

Who has invested in Seven Generations Energy?

1 investor has backed Seven Generations Energy across its funding rounds, including Azimuth Capital Management.


Seven Generations Energy Investors

Investors in Seven Generations Energy by funding rounds participated
InvestorHQRoundsRoleFirst check

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Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples

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Acquisitions by Seven Generations Energy

Seven Generations Energy has acquired 1 company to date.

Last acquisition by Seven Generations Energy was on September 19th 2016. Seven Generations Energy acquired Steelhead LNG for undisclosed valuation.


Latest Acquisitions by Seven Generations Energy

Steelhead LNG
Description
Steelhead LNG is a Vancouver-based developer and licensor of a floating liquefied natural gas facility design. Founded in 2013, it began by developing its own LNG export project on the coast of British Columbia and now concentrates on its proprietary, patented ASLNG design, which rearranges parts of a conventional onshore LNG plant to lower cost and environmental impact. Liquefaction trains sit on a hull similar to a standard LNG carrier with integrated storage, are built in shipyards, and are towed to site near or at shore. Customers and partners are natural gas producers, midstream companies and LNG project sponsors, and it earns revenue by licensing its technology. In September 2016 Seven Generations Energy acquired a minority interest in the company.
HQ CountryCanada
HQ City
Vancouver
Deal Date19 Sep 2016
Valuationundisclosed
EV/Revenue
EV/EBITDA

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Seven Generations Energy Competitors

Seven Generations Energy competitors include listed companies like SBM Offshore, NewMed Energy, Ampol and INA-Industrija Nafte, and private ones like Hyundai Oilbank and TANAP.

Public and private companies comparable to Seven Generations Energy
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
SBM OffshoreNetherlandsNetherlandsPublicly listed$5.9B$1.9B$6B2.0x
NewMed EnergyIsraelIsraelPublicly listed$1B$724M$6B-
AmpolAustraliaAustraliaPublicly listed$20B$366M$6B0.4x
INA-Industrija NafteCroatiaCroatiaPublicly listed$4.3B$489M$5.9B-
Hyundai OilbankSouth KoreaCheongjuPrivate$18B-$8.8B0.5x
TANAPTurkeyAnkaraPrivate--$4B-

Seven Generations Energy Public Comps

Seven Generations Energy is no longer listed, but its public comps include SBM Offshore, NewMed Energy, Ampol, INA-Industrija Nafte, Weatherford, Transocean, Grupo Ultra, PrairieSky Royalty, Matador Resources and CNOOC Energy Technology.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
SBM Offshore$5.9B$1.9B2.4x2.0x7.3x7.3x
NewMed Energy$1B$724M7.2x-10.1x-
Ampol$20B$366M0.5x0.4x26.9x5.5x
INA-Industrija Nafte$4.3B$489M1.5x-13.2x-
Weatherford$4.9B$912M1.3x1.4x7.3x6.7x
Transocean$4B($1.8B)2.6x2.6x(5.8x)7.5x
Grupo Ultra$26B$1.1B0.3x0.3x7.0x4.2x
PrairieSky Royalty$341M$309M17.1x12.9x18.9x14.7x

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Common questions about Seven Generations Energy

When was Seven Generations Energy founded?Seven Generations Energy was founded in 2008.
Where is Seven Generations Energy headquartered?Seven Generations Energy is headquartered in Calgary, Canada.
Is Seven Generations Energy publicly listed?No, Seven Generations Energy was acquired by ARC Resources in February 2021.
Who acquired Seven Generations Energy?Seven Generations Energy was acquired by ARC Resources in February 2021.
How much was Seven Generations Energy acquired for?Seven Generations Energy was acquired for $6B in February 2021, a 3.0x revenue multiple.
How much funding has Seven Generations Energy raised?Seven Generations Energy has raised $236M across 1 funding round.
What was Seven Generations Energy's last funding round?Seven Generations Energy's last funding round was a $236M undisclosed-stage round in December 2013.
Who are Seven Generations Energy's investors?Seven Generations Energy's investors include Azimuth Capital Management.
What is Seven Generations Energy's revenue?Seven Generations Energy's latest recorded revenue is $106M (December 2013).
Which companies are comparable to Seven Generations Energy?Companies comparable to Seven Generations Energy include SBM Offshore, NewMed Energy, Ampol, INA-Industrija Nafte, Hyundai Oilbank and TANAP.
How many companies has Seven Generations Energy acquired?Seven Generations Energy has acquired 1 company, including Steelhead LNG.

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