Like a phoenix rising from the ashes, Houston-based Contango Oil and Gas appears to be quickly transforming to a viable energy company.
Following the 2013 death of founder Kenneth Peak, the latest energy bust incarnation, financial difficulties and the prospect of new ownership, it seemed that Contango was on the ropes.
Enter Fort Worth real estate billionaire John Goff.
In 2018, Goff purchased a large stake in Contango as an investment opportunity. He installed new leadership and funded the company with his own money to turn the company around. Last week, Contango acquired the assets and operations of Oklahoma City’s White Star Petroleum in a $132.5 million deal.
Although White Star was founded by the late Aubrey McClendon, it fell on hard times and filed for Chapter 11 bankruptcy protection. Contango plucked the distressed assets of White Star and other properties throughout Oklahoma, Texas and Louisiana. Suddenly, Contango is no longer worried about catastrophic failure.
Goff worked out new bank lending deals for additional capital and extended repayment timelines with JPMorgan Chase, the Royal Bank of Canada and Cadence Bank.