Cabot Oil & Gas – Cimarex Energy – All-Stock Merger of Equals

Cabot Oil & Gas – Cimarex Energy – All-Stock Merger of Equals

Creating a Premier, Diversified Energy Company with a Strong Free Cash Flow Profile; Positioned to Deliver Superior and Sustainable Returns

HOUSTON, TX and DENVER, CO (STL.News), 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 $17 billion.  Upon completing the transaction, Cabot shareholders will own approximately 49.5%, and Cimarex shareholders will own approximately 50.5% on a fully diluted basis.

“The combination of Cabot and Cimarex will create a free cash flow focused, a diversified energy company with the scale, inventory, and financial strength to thrive across commodity price cycles,” Dan O.

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Author: Marty Smith