Kiwetinohk Energy (OTCPK:KWTE.F) M&A Announcement Transcript

Kiwetinohk Energy Conference Call Summary Company Overview - Company: Kiwetinohk Energy (OTCPK: KWTE.F) - Industry: Energy, specifically focused on oil and gas production Key Points and Arguments 1. M&A Announcement: Kiwetinohk Energy has entered into an agreement with Cygnet Energy for the acquisition of all issued and outstanding shares at a cash consideration of $24.75 per share, marking a significant milestone in the company's business strategy review [5][7][9] 2. Premium on Share Price: The acquisition price represents a 63% premium over Kiwetinohk's share price on the day the business strategy review was announced [5] 3. Asset Quality: Since its formation in 2018, Kiwetinohk has developed a high-quality, liquids-rich asset base in the Dubernay and Montney regions, achieving peer-leading netbacks supported by owned infrastructure [5][10] 4. Transaction Metrics: The total enterprise value of the transaction is $1.4 billion, with a 3.5 times multiple of estimated 2025 adjusted funds flow from operations and approximately $41,500 of value per flowing barrel of production [8] 5. Shareholder Support: 79% of Kiwetinohk shareholders have agreed to vote in favor of the transaction, including 38% of minority shareholders, indicating strong support for the deal [9] 6. Strategic Review Process: The company undertook a comprehensive review process, including the formation of a special committee of independent directors and an independent valuation, leading to the unanimous recommendation of the Cygnet transaction [7][8] 7. Future Outlook: The transaction is expected to deliver a strong and certain return to shareholders more quickly than continuing as a standalone business, marking a pivotal moment for Kiwetinohk and its stakeholders [10] Additional Important Information - Indigenous Land Acknowledgement: The conference call began with an acknowledgment of the traditional territories of Indigenous peoples in Calgary, where Kiwetinohk operates [3] - Management Team: Key executives present during the call included the CEO, CFO, COO, and other senior management, highlighting the leadership's commitment to the company's strategic direction [4] - Market Context: The announcement comes amid a declining commodity price environment, showcasing the resilience and strategic positioning of Kiwetinohk [8]