Shareholders of Cabot Oil & Gas Corp. and Cimarex Energy Co. on Sept. 29 approved the proposed merger between the two companies to form one of the largest U.S. oil and gas firms.
The merger, which was announced in May, brings together Cabot’s gas-rich Marcellus shale positions in the U.S. northeast and Cimarex’s oil-heavy acres in the Permian Basin of West Texas, unlike most recent oil and gas deals that have been between companies with overlapping footprints. In May, the companies pegged the enterprise value of the combined entity at about $17 billion.
Cimarex shareholders will receive 4.0146 shares of Cabot common stock for each share held.
The deal is expected to close in the fourth quarter of 2021, after which Cimarex shareholders would own 50.5% of the combined entity and Cabot shareholders the rest.
The companies said more than 99% of Cabot common shareholders and more than 90% of Cimarex shareholders voted in favor of the merger.
Influential proxy advisory firm Glass Lewis had recommended that shareholders of both Cabot and Cimarex vote to support the proposed merger, while Institutional Shareholder Services had cautiously recommended that shareholders of Cimarex vote for the deal.
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