The Crescent Energy Company now plans to purchase a portfolio of low-risk assets. Image representative. Credit: Jeff W on Unsplash.

Independence Energy and Contango Oil and Gas have completed their previously announced merger, creating a new and diversified US-based energy business.

The combined business will be called Crescent Energy and will be listed on the New York stock exchange.

The new company’s portfolio will include a diverse set of assets across key proven basins in the lower 48 states. In the second quarter of 2021, these assets produced around 119,000 barrels of oil equivalent per day (boe/d) on a pro forma basis.

As agreed, each Contango common stock share that is issued or outstanding will be exchanged for 0.2000 shares of Crescent class A common stock.

Crescent chairman John Goff said: “We appreciate the strong support for this transaction from the Contango shareholders, which we view as a further affirmation of the significant benefits it will deliver.

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“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.”

In June, the two companies agreed to merge their operations in an all-stock deal. At that time, the prospective combined firm had an initial equity market capitalisation of approximately $4.8bn and an enterprise value of $5.7bn.

Crescent CEO David Rockecharlie said: “We believe the current market environment provides an opportunity to significantly grow Crescent and create meaningful shareholder value by executing our differentiated strategy focused on cash flow, risk management and investment returns.”

The company now plans to purchase low-risk assets, maintain strong cash flow, and focus on key environmental, social and governance (ESG) principles.