HOUSTON – (COMMERCIAL THREAD) – Crescent Energy Company (“Crescent” or the “Company”) (NYSE: CRGY) today announced the successful combination of Independence Energy LLC (“Independence”) and Contango Oil & Gas Company (“Contango “), create a leading, diversified and well-capitalized US energy company with a focus on consolidation. The Class A common shares of Crescent will trade on the New York Stock Exchange under the ticker symbol “CRGY” at the opening of markets on December 8, 2021, and as previously announced, each eligible common share of Contango issued and immediately outstanding. Prior to the effective date of the transaction will be exchanged for 0.2000 Class A common shares of Crescent.
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 cash flows. predictable cash flow through cycles. Crescent produced production of approximately 119 MBoe / d on a pro forma basis in the second quarter of 2021 from a diverse set of attractive assets in the lower 48 states, providing a stable platform from which to develop the business. ‘business.
John Goff, President of Crescent, said: “We appreciate the strong support given to this transaction by Contango shareholders, which we see as further affirmation of the significant benefits it will bring. The combined expertise of the Contango and KKR teams as well as a larger scale allows us to continue to benefit from the consolidation of the industry. ”
David Rockecharlie, CEO of Crescent, said: “We believe the current market environment provides an opportunity to grow Crescent significantly and create meaningful shareholder value by executing our differentiated strategy focused on cash flow, management risks and returns on investment.
With the transaction now closed, Crescent is able to pursue its proven strategy of:
Employing a differentiated business model that combines an investor mindset and deep operational expertise
Invest capital with discipline and with a focus on cash flow
Acquisition and development of a portfolio of low-risk assets
Commit to key environmental, social and governance (“ESG”) principles with a commitment to continuous improvement
Provide downside protection through strong risk management
Crescent Management Team and Board of Directors
As previously announced, 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 Managing Director and Board member.
John Goff will be chairman of the board, which is made up of nine members, five from the legacy of Independence, three from the legacy of Contango and one uninherited representative.
New corporate website and investor presentation
As part of Crescent’s formation, the company launched a new corporate website. Additional details about the company are now available at www.crescentenergyco.com, along with updated presentation materials released today.
Further details regarding the transactions can be found in the report on Form 8-K that Crescent will file with the Securities and Exchange Commission.
Share the exchange
Pursuant to the terms of the merger agreement, each eligible share of the issued and outstanding Contango common shares immediately prior to the effective time of the transaction will be exchanged for 0.2000 Class A common shares of Crescent.
Additional information regarding the exchange of Contango common shares for merger has been mailed to registered holders of Contango common shares.
With the closing of the transaction, effective today, the common shares of Contango will no longer be listed on the stock exchange.
Crescent Energy is a diversified, well-capitalized, independent US energy company with a portfolio of assets in proven key basins in the lower 48 states. Our core management team is a group of experienced investment, finance and industry professionals who continue to execute the strategy we have employed since 2011. The Company’s mission is to invest in assets. energy sources and offer better performance, operations and stewardship. For more information, please visit Crescent Energy’s website at www.crescentenergyco.com.
Caution regarding forward-looking information
This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on current expectations. The words and expressions “should”, “could”, “could”, “will”, “believe”, “plan”, “intend”, “expect”, “potential”, “possible” , “Anticipate”, “estimate”, “forecast”, “view”, “effort”, “goal” and similar expressions identify forward-looking statements and express Crescent’s expectations regarding future events. All statements, other than statements of historical fact, included in this communication that deal with activities, events or developments that Crescent expects, believes or anticipates will occur or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond Crescent’s control. Accordingly, actual future results could differ materially from Crescent’s expectations due to a number of factors including, but not limited to, the risk that the operations of the Combined Company will not be successfully integrated; the risk that cost savings, synergies and growth are not fully realized or take longer than expected to be realized; the effect of future regulatory or legislative actions on Crescent or the industry in which it operates; volatility and significant declines in the prices of petroleum, natural gas and natural gas liquids, including regional differentials; the impact of the COVID-19 pandemic, including reduced demand for oil and natural gas, the economic downturn, government and societal actions taken in response to the COVID-19 pandemic, stay orders in home and business interruptions; the impact of the climate change initiative of President Biden’s administration and Congress; Crescent’s financial condition; the potential impact of derivative instruments; Crescent’s business strategy, including its ability to successfully execute its consolidation strategy or make desired changes to its strategy from time to time; meeting forecasts and budgets; expectations regarding the US oil and natural gas markets and realized prices; the ability of members of the Organization of the Petroleum Exporting Countries and other Petroleum Exporting Countries to accept, adhere to and maintain oil price and production controls; epidemics and pandemics, even outside of Crescent’s areas of operation, including COVID-19; operational constraints, start-up delays and production shutdowns on operated and non-operated production platforms, pipelines and natural gas processing facilities; Crescent’s ability to successfully expand its undeveloped acreage and realize the associated benefits; risks associated with exploration, including cost overruns and the drilling of unprofitable wells or dry holes; Crescent’s ability to generate sufficient cash flow from operations, borrowings or other sources to enable it to finance its operations, meet its obligations, finance its drilling program and support its acquisition efforts ; the cost and availability of platforms and other materials, services and operating equipment; capital market conditions and Crescent’s ability to access debt and equity capital markets or other sources of non-bank funding; volatility of interest rates; Crescent’s ability to make strategic disposals or acquisitions of assets or businesses and to realize the benefits of such disposals or acquisitions; uncertainties in estimating proven reserves and in projecting future production rates and the timing of development spending; the need to take write-downs on properties due to falling commodity prices or other changes in asset values; actions or inactions of third party operators of pipelines or processing facilities; the ability to retain key senior management and key technical employees and to find and retain qualified personnel; and the limited trading volume of Crescent Class A common shares and general market volatility.
Many of these risks, uncertainties and assumptions are beyond Crescent’s ability to control or predict. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Crescent makes no assurances (1) that it will meet its expectations, or (2) regarding any outcome or the timing thereof, in any case, with respect to any regulatory action, administrative proceeding, government investigation, litigation, warning letters, decree of consent, cost reductions, business strategies, profit or income trends or future financial results. All subsequent written and oral forward-looking statements regarding Crescent or other matters and attributable to Crescent or any person acting on its respective behalf are expressly qualified in their entirety by the cautionary statements above. Crescent assumes no obligation to update or revise their respective forward-looking statements on the basis of new information, future events or otherwise.