XEC - Cabot Oil & Gas Cimarex Energy to merge in all-stock deal

Cabot Oil & Gas (COG) +1.6% pre-market after agreeing to combine with Cimarex Energy (XEC) in an all-stock merger of equals, reflecting an enterprise value of ~$17B.Under the deal terms, Cimarex shareholders will receive 4.0146 shares of Cabot common stock for each Cimarex share owned.Upon completion of the deal, Cabot shareholders will own ~49.5% and Cimarex shareholders will own 50.5% of the combined company.The merged company will combine Cabot's 173K net acres in the Marcellus Shale basin with Cimarex's 560K net acres in the Permian and Anadarko basins.The companies say they expect to generate $4.7B of free cash flow during 2022-24 based on $55/bbl WTI oil and $2.75/MMBtu natural gas prices.Cabot Chairman, President and CEO Dan Dinges will serve as Executive Chair of the newly combined company; Cimarex Chairman, President and CEO Thomas Jorden will become the new CEO and join the board.

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Cabot Oil & Gas, Cimarex Energy to merge in all-stock deal