Independence Energy LLC has successfully merged with Contango Oil & Gas Company on Dec. 7 to create Crescent Energy Co., a premier, diversified and well-capitalized U.S. energy company focused on consolidation.

Crescent's Class A common stock will trade on the New York Stock Exchange under the ticker symbol "CRGY" at the open of trading on December 8, 2021, and as previously announced, each eligible share of Contango common stock issued and outstanding immediately prior to the effective time of the transaction will be exchanged for 0.2000 shares of Crescent Class A common stock.

Crescent’s investment approach will build on a long track record of prioritizing cash flow through financial discipline and risk management, focused on delivering attractive risk-adjusted investment returns and predictable cash flows across cycles.

Crescent had production of approximately 119,000 barrels of oil equivalent per day (boe/d) on a pro forma basis in the second quarter of 2021 from a diverse set of attractive assets across the lower 48 states, providing a stable platform from which to grow the business.

Independence is an upstream oil and gas business built and managed by KKR’s Energy Real Assets team with a scaled portfolio of low-decline, producing assets across the Eagle Ford, Rockies, Permian and Midcontinent regions. Meanwhile, Contango, a Fort Worth, Texas-based independent oil and gas company, has positioned itself as a consolidator completing four significant acquisitions in the last 18 months.

RELATED: Contango Oil & Gas to Combine with KKR-backed Firm in All-stock Merger

"We appreciate the strong support for this transaction from the Contango shareholders, which we view as further affirmation of the significant benefits it will deliver,” John Goff, chairman of Crescent, said. “The combined expertise of the Contango and KKR teams along with a much greater scale affords us the ability to continue to take advantage of industry consolidation."

With the transaction now closed, Crescent is positioned to continue its demonstrated strategy of employing a differentiated business model that combines an investor mindset and deep operational expertise; investing capital with discipline and a focus on cash flow; acquiring and developing a portfolio of low-risk assets; engaging on key ESG principles with a commitment to continuous improvement; and providing downside protection through strong risk management.

The combined business will be managed by KKR’s Energy Real Assets team and led by David Rockecharlie, head of KKR Energy Real Assets, who will serve as CEO and as a member of the board of directors.

John Goff will be chairman of the board of directors, which is composed of nine members, five from legacy Independence, three from legacy Contango and one non-legacy representative.

Share Exchange

In accordance with the terms of the merger agreement, each eligible share of Contango common stock issued and outstanding immediately prior to the effective time of the transaction will be exchanged for 0.2000 shares of Crescent Class A Common Stock.

Additional information regarding the exchange of Contango common stock for merger consideration was mailed to registered holders of Contango common stock.

With the completion of the transaction, as of Dec. 7, Contango common stock will no longer be listed for trading.

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