Cabot Oil & Gas Corp. and Cimarex Energy Co. announced plans on May 24 to combine in an all-stock “merger of equals” with the two U.S. shale producers banking on a diversified oil and gas portfolio to generate sustainable returns across a wide range of commodity price scenarios.

With Cabot’s approximately 173,000 net acres in the Marcellus Shale and Cimarex’s approximately 560,000 net acres in the Permian and Anadarko basins, the combined business will have a multi-decade inventory of high-return development locations in the premier oil and natural gas basins in the U.S., the companies said in a joint release.

“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 Houston-based Cabot, said in a statement.

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