KKR & Co’s Independence Energy LLC And Contango Oil & Gas Co Merge To Establish A New Company

Image Credit – Economic Times

 

Contango Oil & Gas Co has decided to merge with KKR & Co’s Independence Energy LLC with all their stocks. The merger will give birth to an oil and gas company that has a market value of $5.7 billion.

The companies announced the news on Tuesday. There have been a lot of mergers in the industry as the post-vaccinated situation needs a boost in gas and oil prices.

Independence is established and managed by the Energy Real Assets team KKR. The company along with Contango has assets around Permian in Texas and Mid-Continent basins and Rockies in Colorado.

While Contango shareholders will have 24% of the business, Independence investors will have 76% after the deal is made. The deal will be made either at the end of the third quarter or the beginning of the fourth quarter.

As per reports, nearly 108,000 to 114,000 barrels of oil will be produced by the merged company every day in 2022. Their principal earning will be between $750 million and $800 million.

Contango’s closing stock price on Monday was $5.62. This data predicts that the new company’s starting equity market capitalization will be around $4.8 billion.

KKR’s Energy Real Assets team will be managing the new organization. The chief executive of the firm will be the head of KKR Energy Real Assets, David Rockecharlie.

The chairman of the combined firm will be John Goff, who is Contango’s chairman and the largest shareholder. The headquarter of the company will be in Houston.

The company will have a completely different name and symbol. It will be listed on the New York Stock Exchange.

KKR will be given a special class of non-economic preferred stock. It will allow them to employ all board members and provide them with many consent rights on actions like mergers, debt incurrence, acquisitions, officer changes, and more.



Rafael Schneider

Rafael Schneider : Reporter I am Rafael Schneider and I focus on breaking news stories and ensuring we (“World Front News”) offer timely reporting on some of the most recent stories released through market wires about Sector companies. I have formerly spent over 6 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full-time basis for specializing in quicker moving active shares with a short-term view on investment opportunities, and also covers the latest news, and trends. Address:  3817 Daylene Drive Pontiac, MI 48342 Phone:  (+1)- 734-577-2738 Email:  [email protected]