Mon, 05/24/2021 - 04:00 PM
Instead of in-basin synergies, however, Dittmar said the Cabot/Cimarex deal is driven by financial-side metrics.
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Marrying together a core oily Delaware Basin asset with a dry gas Marcellus one, the merger of equals between Cabot Oil & Gas Inc. and Cimarex Energy Co. upturns a growing trend in the upstream E&P space.
“While public company consolidation including mergers of equals have been a key theme of the post-COVID M&A market, this deal comes as a bit of a surprise and may have a less clear story to tell investors,” Andrew Dittmar, senior M&A analyst with Enverus, said in an emailed statement on May 24.