Shareholders have bestowed their blessings on the merger of equals between Denver-based Cimarex Energy and Houston’s Cabot Oil & Gas. Now, it’s time to determine a new name and ticker symbol that combines the two companies following tomorrow’s close. The $17 billion deal announced May 24 will create one of the nation’s largest independent E&Ps to be headquartered in Houston. Reese Energy Consulting today is studying this surprise merger that couples a predominantly oil-weighted producer with a pure-play gas producer, both of which operate in different basins. Unlike the Chesapeakes of the industry that focus primarily on shale gas or the Pioneers that drill for oil exclusively in the Permian, Cimarex CEO Thomas Jordan says the C+C combination will take the newly created company “off the commodity rollercoaster.” He also expects to generate $4.7 billion in free cash flow over the next two years. With Midcontinent assets in West Texas, N.M., and Okla., and in the Permian’s Delaware sub-basin, Cimarex produces 219 MBPD of crude along with gas and NGLs. Cabot operates solely in the Marcellus, producing 2.35 BCFPD of natural gas.
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Cimarex Energy Co. is an American company engaged in hydrocarbon exploration, particularly shale oil and gas drilling. It is organized in Delaware and headquartered in Denver, Colorado, with operations primarily in Texas, Oklahoma, and New Mexico.