Cimarex Energy, Cabot Oil & Gas to Merge

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All-Stock Move Will Create Company With $17 Billion Enterprise Value

In a move that will create a company with an enterprise value of $17 billion, Cimarex Energy Co. and Cabot Oil & Gas Corp. will merge in the fourth quarter of 2021. The all-stock merger of equals will result in Cimarex shareholders owning 50.5% of the new company and Cabot Oil shareholders having 49.5% on a fully diluted basis.

“The combination of Cabot and Cimarex will create a free cash flow focused, diversified energy company with the scale, inventory and financial strength to thrive across commodity price cycles,” Dan O. Dinges, Chairman, President, and CEO of Cabot said. “The combined business will be overseen by an experienced board and a management team that is committed to a prudent strategy built on disciplined capital investment, strong free cash flow generation and increasing returns to shareholders. With its premier assets, increased resource diversity and a strong financial foundation, the company will be well positioned to deliver long-term value creation for its shareholders and other stakeholders.”

Houston-based Cabot brings 173,000 net acres in the Marcellus Shale basin to combine with Dever-based Cimarex’s 560,000 net acres in the Permian and Andarko basins, and the deal should generate about $4.7 billion in free cash flow from 2022-24.

“This transformational merger will combine our top-tier assets and advance our shared focus on delivering superior returns for investors,” said Thomas E. 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. We view commodity, geography and asset diversification as strategic advantages that will drive more resilient free cash flow and long-term value creation. We are aligned on our commitment to ESG and sustainability and look forward to bringing our talented teams together to unlock the tremendous potential of this compelling combination.”

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