A recent Merger has taken place between Independence Energy and Contango Oil and Gas Company. The commercial agreement is expected to influence gains in the future for the U.S. oil and gas industry.The deal has been initiated by combining operations into a new business venture creating a $5.7 billion U.S. shale giant.Independence Energy has been managed so far and built by KKR’s Energy Real Assets team.
KKR is Kohlberg Kravis Roberts & Co. L.P., a corporate financing company established way back in the late 1970s. The Energy Real Assets team deals with assets spread across the Eagle Ford, Rockies, Permian, and mid-continent. Contango Oil and Gas Company, Forth Worth, Texas, has been focused on producing assets in the predominant areas on Independence Energy, which include the Mid-Continent, Permian, and the Rockies.
Companies have come forward declaring the all-stock transaction to create low leverage, and diversified U.S.-based independent oil and gas company primarily focused on consolidation.According to the terms incorporated in the deal, Independence will merge into an operating subsidiary within a new parent company, which will be acknowledged as a publicly-traded company.
Contango will be observed as the wholly-owned entity of the operating subsidiary.The merged company organization will be headquartered in Houston and is expected to start operating under a new name with a new ticker symbol. The deal is anticipated to close later in 2021, liable to specific steps, including approval of Contango shareholders, regulatory approval procedures, and other criteria.