Waterous Energy Fund: What’s Next After MEG?
January 31, 2026
Oil Pumpjack | Image courtesy of Jan Zakelj
The Battle for MEG Energy
After months of a high-stakes tug-of-war between Alberta energy heavyweights Cenovus and private-equity-backed Strathcona Resources, the battle for MEG Energy finally came to a close. On November 13, 2025, Cenovus Energy announced the completion of its acquisition of MEG Energy in a cash and stock deal valued at $8.6 billion.
Strathcona began buying shares of MEG in the first and second quarters of 2025, snapping up 10% of the company. On May 15th, Strathcona announced its intention to acquire the company in a cash and stock bid, citing the following as its three reasons for the bid: complementary, high-quality assets of scale, significant accretion for both MEG and Strathcona shareholders and meaningful and achievable synergies. Prior to its May 15th press release, Strathcona reached out privately to see if MEG was interested in an acquisition. MEG rebuffed the approach. On the defensive, MEG’s board sought alternative buyers, with Cenovus ultimately emerging as the successful bidder.
Both Strathcona’s and Cenovus’s MEG acquisitions were structured using a combination of cash and shares. Shown below is Cenovus’s deal structure.
Source: Cenovus Energy Press Release
Strathcona's Formation Under Waterous
Ex-Scotiabank investment banker, Adam Waterous founded Waterous Energy Fund (WEF) in 2017 after seeing an opportunity to apply a value-approach to the oil and gas sector. WEF focus is on buying a concentrated portfolio of high-quality assets with a longer time horizon. This strategy contrasts with traditional private equity, where firms often seek to acquire underperforming assets, improve their performance, and exit within 3–10 years. Strathcona Resources was founded in August 2020 when WEF combined Strath Resources and Cona Resources. The combined company was taken public in October of 2023.
What's Next for WEF?
On December 22nd, Strathcona confirmed the issuance of a $10 per share special distribution, returning $2.14 billion to shareholders, primarily benefiting WEF’s LP base. On January 22nd, Strathcona released an investor presentation with information on “Where We Have Been And Where We Are Going”. Strathcona’s plan for the next 5 years is to focus on organic growth, with a target of 200 Mbbls / d by 2031.
With control of both Strathcona Resources and Greenfire Resources, Waterous Energy Fund is well positioned to consolidate additional oil and gas assets.
Strathcona Resources Share Price (1-Year): On December 22, 2025, Strathcona announced a special dividend of $10 per share.
Source: Bloomberg
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