Contango Oil & Gas Acquires Mid-Con Energy in All-Stock Deal

Updated 7 months 3 weeks ago

Contango and Mid-Con Energy entered into an agreement in October 2020 for an all-stock merger in which Mid-Con unit holders will receive 1.75 shares of Contango common stock for each common unit, a 5% premium based on a 15-day volume-weight average price. Contango shareholders will own 87% of the combined company. The transaction has been approved unanimously by the directors of both companies with voting agreement signed by over 50% of holders on both sides of the deal, including Goff Capital. Contango's management with continue to lead the company with headquarters in Fort Worth, Texas.

Contango's revolving credit facility has been expanded from $75 million to $130 million, and the company executed a $39.7 million private placement. Intrepid Partners advised Contango, and Petrie Partners advised Mid-Con.

Wilkie Colyer, Contango CEO

We of course have great familiarity with the Mid-Con assets having a Management Services Agreement with them and having brought on many of their employees, which has meaningfully enhanced Contango’s expertise. This transaction is simply the next step, and certainly not our last, in our stated goal of consolidating a sector that is in dire need of it.