Contango Oil & Gas — Merger or Acquisition (June 2021)
17 slides from Contango Oil & Gas's merger presentation, Jun 8, 2021
Slide 1: Transformative Merger with Independence
Exhibit 99.4 j*V © Independence + Energy Contango . IT, J « -A 1 i Transformative Merger with Independence June 2021 +Exhibit 99.4 j*V © Independence + Energy Contango . IT, J « -A 1 i Transformative Merger with Independence June 2021 +
Slide 2: Disclaimer
Disclaimer This presentation relates to a proposed business combination transaction (the “Transaction”) between Independence Energy LLC (the “Company”) and Contango Oil & Gas (“Contango”), and contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 2
Slide 3: Disclaimer (Cont'd)
Disclaimer (Cont’d) Important Additional Information In connection with the proposed Transaction, IE PubCo Inc., a wholly owned subsidiary of the Company (“NewCo”), will file with the U.S. Securities and Exchange Commission (“SEC”) a registration statement on Form S-4, that will include a proxy stat
Slide 4: Transaction Overview
Transaction Overview (1) ► Combined company will have an initial market cap and TEV of ~$4.8 Bn and ~$5.7 Bn ► All stock transaction Transaction Structure (2) ► Pro forma net debt of ~$935 MM ► Pro forma ownership of 76% Legacy Independence and 24% Legacy Contango ► Business positioned to be KKR’s p
Slide 5: Transaction is Accretive to Strategy and Financial Metrics
Transaction is Accretive to Strategy and Financial Metrics Provides significant combined scale with greater access to and lower cost of capital ✓ Positions the company to be a leading consolidator in the US ✓ (1) Substantially accretive to Contango’s cash flow per share with ~15% and ~50% accretion
Slide 6: The Pro-Forma Company at a Glance
The Pro-Forma Company at a Glance Diversified, Well-Capitalized U.S. Independent Oil and Gas Company With Consistent Strategy Since 2011 Key Portfolio Attributes Current Operations Across the L48 Independence Basin Footprint 1. Strong and predictable PDP base Contango Basin Footprint ✓ Substantial c
Slide 7: Creating a Differentiated E&P Company
Creating a Differentiated E&P Company Accretive Transaction for Contango Shareholders Creates Company Uniquely Positioned in Market + 1 Aligned Management with Investor Mindset P 2 Sustainable Free Cash Flow P 3 Significant Scale Across Proven Basins P 4 Well Positioned to be a Leading Oil & Gas Con
Slide 8: Aligned Management with Investor Mindset
Aligned Management with Investor Mindset Uniquely aligned management team with high insider ownership and innovative performance-based incentive structure Independence Management Team Continued Partnership with Like-Minded Leadership David Brandi Todd John Wilkie Farley Rockecharlie Kendall Falk Gof
Slide 9: Significant and Sustainable Generation
Significant and Sustainable Free Cash Flow Generation Preliminary 2022E Estimates Low Decline Disciplined Diversified production Daily Production 108– 114 MBoe/d Capital Spend with 18% base Historical reinvestment 2022E Base Decline ~15% PDP decline forecast rates averaging ~45% (1) (2) for 2021E %
Slide 10: Operational Excellence at Scale
Operational Excellence at Scale Balanced portfolio of cash flowing assets and attractive, low-risk reinvestment opportunities in key proven basins across the Lower 48 Current Operations Q1 2021 Production YE 2020 SEC Reserves (1) By Basin (%) By Commodity (%) Rockies Other 10% Oil Permian Eagle Ford
Slide 11: Well Positioned to Be a Leading Oil & Gas Consolidator
Well Positioned to Be a Leading Oil & Gas Consolidator Competitive Advantages Divestiture Programs Subscale Companies of Majors and Large- With Market Cap of ✓ Differentiated business model Cap Independents <$1.0 Billion ✓ Focused and proven strategy Large and ✓ Significant access to capital Attract
Slide 12: ESG Commitment
ESG Commitment Shared commitment to developing industry-leading Environmental, Social, and Governance (“ESG”) programs and continually improving ESG performance Commitment to ESG Leadership Work to reduce greenhouse gas emissions Enable a zero incident workplace + Proactive and focused Manage and re
Slide 13: Disciplined Financial and Risk Management Approach
Disciplined Financial and Risk Management Approach • Target investment grade credit metrics Commitment to • Long-term target leverage at or below 1.0x Low Leverage • Disciplined reinvestment of a portion of cash flow Returns Focused • Deliver full-cycle cash-on-cash returns Reinvestment Decisions •
Slide 14: Well-Capitalized Balance Sheet
Well-Capitalized Balance Sheet Preliminary Net Debt / • Investment grade credit EBITDA metrics and increased scale ~1.0x Long-Term of proved reserves, 1.4x Leverage Target production, EBITDA and free ~1.3x cash flow • No near-term maturities (1) • Pro forma capital structure ~0.6x includes: – ~$465
Slide 15: Pro Forma Company Compares Favorably to Peers
Pro Forma Company Compares Favorably to Peers (1) 2021E Base Decline Estimates 2021E – 2022E Cumulative Reinvestment Rate Peer-leading base decline rates provide visibility and …which reduces re-investment requirements and predictability to long-term cash flow… provides optimal operational flexibili
Slide 16: Why Own the Combined Company?
Why Own the Combined Company? + Aligned Management with Investor Mindset Sustainable Free Cash Flow Significant Scale Across Proven Basins Well Positioned to be a Leading Oil & Gas Consolidator Commitment to ESG Excellence Disciplined Financial and Risk Management Approach Well-Capitalized Balance S
Slide 17: Appendix: Pro Forma Management Team Bios
Appendix: Pro Forma Management Team Bios David Rockecharlie (Chief Executive Officer) | David Rockecharlie joined KKR in 2011 and is a Partner and Head of KKR's Energy Real Assets business. Mr. Rockecharlie serves as Chairman of KKR’s Energy Investment Committee and as a member of the Board of Direc
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