Cabot and Cimarex finalize merger and unveil new name


Cabot Oil & Gas Corp. and Cimarex Energy have completed their $ 17 billion merger, forming a new company called Coterra Energy.

The Houston oil and gas company announced Friday that it will begin trading on the New York Stock Exchange on Monday under the ticker symbol CTRA, which will replace COG’s Cabot ticker. Cimarex XEC share ceased trading after the merger closed on Friday.

“We are proud to complete our transaction and launch Coterra, which will build on the impressive heritage and many strengths of Cabot and Cimarex,” said Executive Chairman Dan Dinges, former CEO of Cabot.

Coterra is the latest in a wave of consolidation that has swept through the energy industry in the wake of the oil crisis caused by the pandemic. Companies are joining forces to pool their resources and reduce their costs in order to better cope with market slowdowns and uncertainties linked to the energy transition.

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Coterra said it expects the merger to save the combined company around $ 100 million per year through operational efficiency and lower costs. The company will operate on more than 700,000 acres in the Marcellus, Permian and Anadarko basins, which produced approximately 605,000 barrels of oil and gas per day in the second quarter of 2021.

Cabot paid Cimarex shareholders just over 4 Cabot shares for each Cimarex share to acquire the Denver company. After closing, Cabot shareholders own approximately 49.5% of the combined company while Cimarex shareholders own the remaining 50.5%.

The new Coterra company will be headed by CEO Thomas Jorden, former CEO of Cimarex. Scott Schroeder, previously CFO of Cabot, will assume the role at Coterra.

Coterra’s board of directors is made up of 10 members with equal representation from Cabot and Cimarex. The board of directors includes Chairman Dinges and CEO Jorden.

The company on Friday pledged to return 50 percent of its free cash flow each quarter to shareholders and will pay a special cash dividend of 50 cents per share after the transaction closes.

“Today marks the start of our journey as a Coterra team,” said Jorden. “We couldn’t be more excited to bring our teams together and form a new exploration and production company that is well positioned to succeed in the next phase of the shale revolution and beyond. ”

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