Exiting Position – Kiwetinohk Energy Corp. (TSX: KEC)
Published on 2026-01-16
On October 28, 2025, privately held oil & gas producer Cygnet Energy submitted a bid to acquire Kiwetinohk Energy Corp. (TSX: KEC) in a deal valued over $1 billion CAD. Cygnet’s bid offered cash of $24.75 per share, and as of December 31, 2025, we received our consideration from Cygnet and effectively exited our position in KEC.
We initially published our thesis on KEC in June of 2025, citing the company as an attractive way to play on a merger & acquisitions trend in Alberta’s Montney and Duvernay. We saw global demand growth for LNG, continuing growth in North American LNG export capacity, and falling overnight rates combined with lower premiums on debt in the Canadian O&G space all as broad scale drivers of consolidation activity. Additionally, KEC’s size, geographic position relative to peers, asset quality, share valuation, and other traits such as ownership and management made it an especially attractive target to an acquirer and a quality investment in the absence of such. For more details on our thesis from June 2025, see link here: (link).
Our recommendation for KEC was made at $18.60 per share, and our position closed at $24.75 per share. This represents a total return of ~33%, and an annualized return of ~70%. We are very pleased with how the purchase of the company unfolded and with the returns it provided us. Below is a summary of KEC’s share price performance over the last year, with red markers indicating where we entered and exited our position.
