Investing - Brookfield Asset Management

Case Study: Ember Resources
• Investment Type
– $50 million initial equity investment
• Business Overview
– Financially distressed natural gas producer focused
on coal bed methane and shallow gas in central Alberta
– Extensive land holdings include 435 net producing
wells and long-life gas reserves
– Low production costs permit positive cash flow at
highly depressed natural gas prices
• Investment Thesis
– Financial i distress enabled Brookfield to partner with principal i shareholder h to take the company
private at a 50% discount to NAV
– Targeting 25% returns; significant additional upside in reserves and production should gas
prices improve
– Identified operational improvements, reserve enhancements and G&A savings
– Limited risk due to low financial leverage and exceptionally low entry price
• Target Return: 25%
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| Brookfield Asset Management Inc.