Shareholders of Cabot Oil & Gas Corp. and Cimarex Energy Co. on Sept. 29 approved the proposed merger between the two companies to form one of the largest U.S. oil and gas firms.
The merger, which was announced in May, brings together Cabot’s gas-rich Marcellus shale positions in the U.S. northeast and Cimarex’s oil-heavy acres in the Permian Basin of West Texas, unlike most recent oil and gas deals that have been between companies with overlapping footprints. In May, the companies pegged the enterprise value of the combined entity at about $17 billion.
Cimarex shareholders will receive 4.0146 shares of Cabot common stock for each share held.
The deal is expected to close in the fourth quarter of 2021, after which Cimarex shareholders would own 50.5% of the combined entity and Cabot shareholders the rest.
The companies said more than 99% of Cabot common shareholders and more than 90% of Cimarex shareholders voted in favor of the merger.
Influential proxy advisory firm Glass Lewis had recommended that shareholders of both Cabot and Cimarex vote to support the proposed merger, while Institutional Shareholder Services had cautiously recommended that shareholders of Cimarex vote for the deal.
Recommended Reading
Stockholder Groups to Sell 48.5MM of Permian Resources’ Stock
2024-03-06 - A number of private equity firms will sell about 48.5 million shares of Permian Resources Corp.’s Class A common stock valued at about $764 million.
Green Swan Seeks US Financing for Global Decarbonization Projects
2024-02-21 - Green Swan, an investment platform seeking to provide capital to countries signed on to the Paris Agreement, is courting U.S. investors to fund decarbonization projects in countries including Iran and Venezuela, its executives told Hart Energy.
Utility, Clean Energy Company Allete to Go Private in $6.2B Deal
2024-05-06 - The Minnesota-based utility said on May 6 it agreed to be acquired by a partnership led by Canada Pension Plan Investment Board and Global Infrastructure Partners.
First Solar’s 14 GW of Operational Capacity to Support 30,000 Jobs by 2026
2024-02-26 - First Solar commissioned a study to analyze the economic impact of its vertically integrated solar manufacturing value chain.
SunPower Begins Search for New CEO
2024-02-27 - Former CEO Peter Faricy departed SunPower Corp. on Feb. 26, according to the company.