US shale players
The transaction has been described as a surprising one, given the lack of overlap between the two companies’ operations. Cabot is a Marcellus shale-focused gas driller, while Cimarex produces predominantly tight oil, with its assets mainly located in the
The deal will give Cabot shareholders about 49.5% of the combined entity, with Cimarex shareholders owning the remaining 50.5% stake, the companies said in a
However, Cabot’s CEO,
The news comes amid a number of other major mergers and acquisitions (M&As) that are currently being finalised in the US oil and gas industry. However, the majority of producers have tended to favour deals that expand their core footprints and allow them to benefit from economies of scale across one main region.
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