Cabot Oil & Gas and Cimarex Energy agree merger deal
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US-based Cabot Oil & Gas has agreed to merge with Cimarex Energy to create a combined business valued at almost $17bn.
As per the terms of the all-stock ‘merger of equals’, Cimarex Energy shareholders will be entitled to 4.0146 shares of Cabot Oil & Gas stock for each share held.
Cabot Oil & Gas’ shareholders will hold a stake of around 49.5% in the combined company, while Cimarex Energy’s shareholders will have a holding of roughly 50.5%.
(PRNewsfoto/Cimarex Energy Co.,Cabot Oil & Gas Corporation)
HOUSTON and DENVER, May 24, 2021 /PRNewswire/
Cabot Oil & Gas Corporation ( Cabot ) (NYSE: COG) and Cimarex Energy Co. ( Cimarex ) (NYSE: XEC) today announced that they have entered into a definitive agreement whereby the companies will combine in an all-stock merger of equals. The combination will bring together two industry-leading operators with top-tier oil and natural gas assets to create a diversified energy leader that is positioned to drive enhanced free cash flow generation and returns for investors through market cycles.
Under the terms of the agreement, which has been unanimously approved by the Boards of Directors of both companies, Cimarex shareholders will receive 4.0146 shares of Cabot common stock for each share of Cimarex common stock owned. The exchange ratio, together with closing prices for Cabot and Cimarex on May 21, 2021, reflects an enterprise value for the combined companies of approximately
Cabot Oil & Gas, Cimarex Energy to merge to create $17 bln producer
05/24/2021 | 06:49am EDT
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May 24 (Reuters) - Cabot Oil & Gas Corp and Cimarex
Energy Co on Monday agreed to merge to form a U.S. oil
and gas producer with an enterprise value of about $17 billion,
the latest deal in a sector rebounding from one of its worst
downturns.
The deal frenzy reflects hopes to ride a recovery in oil and
gas prices as fuel demand picks up from pandemic lows, while
also allowing for savings by eliminating cost duplication.
The companies expect to save $100 million in annual general