Houston-based Cabot Oil & Gas Corp. and Cimarex Energy Co. have completed their merger to create a newly formed diversified energy company, Coterra Energy Inc.
The $9 billion merger, which was approved by shareholders of both companies, reflects two companies coming together, combining teams and assets to create a stronger platform to deliver sustainably higher returns, the newly formed Coterra said in a news release.
"We are proud to complete our transaction and launch Coterra, which will build upon the impressive legacies and many strengths of both Cabot and Cimarex," said Coterra Executive Chairman Dan O. Dinges. "Driven by a commitment to operating accountably, sustainably and safely, Coterra will be well positioned to increase returns to shareholders and deliver long-term value for all our stakeholders."
Coterra said it is now positioned to facilitate significant capital returns; deliver substantial and sustained cash generation across cycles; leverage a top tier asset base across over 700,000 net acres; ensure a strong financial profile; and strengthen its commitment to socially conscience investing.
"Today marks the beginning of our journey as one Coterra team. We couldn't be more excited to bring together our teams and form a new E&P company that is positioned to succeed in the next phase of the shale revolution and beyond. With tremendous flexibility between premier oil and natural gas assets and a focus on operating efficiently, driving substantial cash flows and generating capital returns through commodity cycles, Coterra is poised to deliver enhanced value to our shareholders," said Thomas E. Jorden, CEO, president and director of Coterra.
J.P. Morgan Securities LLC served as financial adviser to Cabot, and Baker Botts LLP served as Cabot's legal counsel. Tudor, Pickering, Holt & Co. served as financial adviser to Cimarex, and Wachtell, Lipton, Rosen & Katz served as Cimarex's legal counsel.
