Cabot Oil & Gas Corp. and Cimarex Energy Co. have agreed to combine in an all-stock merger.
Under the agreement, Cimarex shareholders will receive 4.0146 shares of Cabot common stock for each share of Cimarex common stock owned. Following the deal, Cabot shareholders will own 49.5 percent and Cimarex shareholders will own 50.5 percent on a fully diluted basis.
The exchange ratio, along with closing prices for the companies, reflects a $17 billion enterprise value for the combined companies.
“This transformational merger will combine our top-tier assets and advance our shared focus on delivering superior returns for investors,” said Thomas Jorden, chairman, president and CEO of Cimarex. “We’re building an even more resilient platform with greater financial strength in order to deliver sustainable, through-cycle returns on and of capital.”
He added: “We view commodity, geography and asset diversification as strategic advantages that will dri
