Cabot and Cimarex merge to form Conterra Energy
By Daniel Tyson
13:00, 4 October 2021
Shares of Coterra Energy are higher in their first day of trading. The new company was formed by the merger of Cabot Oil and Gas and Cimarex Energy. The combination closed Friday.
Coterra Energy started trading Monday on the New York Stock Exchange at $22.68 per share under the ticker CTRA. Within minutes the stock jumped to $23.18. It's market capitalisation is $9.24bn.
Denver, Colorado-based Cimarex stockholders were paid slightly more than four Cabot shares for each Cimarex stock, according to the new company. After the US markets closed Friday, Cimarex shareholders owned about 50.5% of Coterra Energy, while Houston, Texas-based Cabot shareholders were the minor holders at 49.5%, the companies previously said.
Merger
The merger was announced in May. Cimarex is a shale oil and gas company, while Cabot is mainly an Appalachian Marcellus natural gas producer.
The new company is expected to save roughly $100m via operational and cost efficiencies beginning within 18 months to two years, while working more than 700,000 acres in the Anadarko, Marcellus and Permian basins.
What is your sentiment on Natural Gas?
New company
Coterra Energy will continue to build on the "strengths" of its Cabot and Cimarex.
New executive chair Dan Dinges, Cabot’s former chair and CEO, said: “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.”
This is the latest merger in the energy industry which suffered greatly when the coronavirus pandemic depressed petroleum prices. To weather the famine market, energy companies are pooling resources and cutting operational costs.
Read more: Cimarex and Cabot to merge in bn deal
Related topics