Independence Energy, Contango Oil & Gas to combine

KKR & Co. businesses Independence Energy LLC and Contango Oil & Gas Co. have entered into a definitive agreement to combine in an all-stock transaction. The combined company expects to have 2022 production of 108,000-114,000 boe/d.

Upon completion of the transaction, Independence shareholders will own about 76% and Contango shareholders roughly 24% of the combined company, which will have an initial equity market capitalization of $4.8 billion and enterprise value of $5.7 billion.

The companies expect the deal to close late third-quarter or early fourth-quarter 2021, subject to shareholder and regulatory approvals.