Marrying together a core oily Delaware Basin asset with a dry gas Marcellus one, the merger of equals between Cabot Oil & Gas Inc. and Cimarex Energy Co. upturns a growing trend in the upstream E&P space.

“While public company consolidation including mergers of equals have been a key theme of the post-COVID M&A market, this deal comes as a bit of a surprise and may have a less clear story to tell investors,” Andrew Dittmar, senior M&A analyst with Enverus, said in an emailed statement on May 24.

The all-stock transaction combines Cabot’s approximately 173,000 net acres in the Marcellus Shale with Cimarex’s approximately 560,000 net acres in the Permian and Anadarko basins, though Dittmar said Cimarex’s Anadarko position would seemingly play a minor role in the combined company.

Already have an account? Log In

Thanks for reading Hart Energy.

Subscribe now to get unmatched coverage of the oil and gas industry’s entire landscape.

Get Access