Featured Deal

Independence Energy 

Corporate and Investment Banking role

Financial Advisor to Independence Energy, LLC.

Transaction overview

On June 8, 2021, Independence Energy, LLC (“Independence”) and Contango Oil & Gas Company (NYSE American: MCF) (“Contango”) announced that they entered into a definitive agreement to combine in an all-stock transaction.

  • Based on Contango’s closing stock price of $5.62 on June 7, 2021, the combined company will have an initial equity value of ~$4.8 billion and enterprise value of ~$5.7 billion
  • Independence shareholders will own ~76% and Contango shareholders will own ~24% of the combined company
  • Unanimously approved by both companies’ boards and expected to close second half of 2021
  • Will be managed by the KKR Energy Real Assets team and led by David Rockecharlie, Head of KKR Energy Real Assets, who will serve as CEO
  • Contango’s Chairman and largest shareholder, John Goff, will serve as Chairman
  • The combined company is positioned to be a leading consolidator in the U.S. oil and gas industry through increased scale, improved access to capital, low leverage and a successful, proven management team
  • The combined company will be headquartered in Houston and expects to operate under a new name and ticker

Transaction highlights

  • Creates premier, diversified and low leverage U.S. independent oil and gas company focused on consolidation
  • Combined company to deliver attractive risk-adjusted returns through cash flow oriented business model
  • Projected to be substantially accretive to Contango’s cash flow per share beginning in 2021E
  • Meaningful immediate G&A synergies with further savings anticipated

Independence management commentary

- David Rockecharlie, CEO of Independence