Cimarex Energy Merging With Cabot Oil & Gas In $17B Deal

Cabot Oil & Gas Corp. and Cimarex Energy Co. will merge in a $17 billion deal announced on Monday.

Cimarex, which has a location in Tulsa, is based out of Denver while Cabot is out of Houston and the new headquarters for the new business will be located in Houston.

Once the deal closes, Cabot's shareholders will own about 49.5% of the combined company while Cimarex's shareholders will own the remaining 50.5%.

Cimarex President and CEO Tom Jorden, who will now become CEO of the new company, said on their investor call this morning that now is the right time for this merger.

"After a year in which we've all experienced roller coaster change and volatility we're building an even more resilient platform with the greater financial strength to deliver sustainable through cycle returns on enough capital," said Jorden.

The new company plans to keep its regional office in Tulsa, but it’s unclear how the reorganization could impact certain roles.

“There is no city in the U.S. that is more inextricably tied to the history of Cimarex and the companies that formed it than Tulsa. We are incredibly proud of the ways in which our Company and our employees have contributed to our local communities, including Tulsa, and look forward to maintaining a presence here moving forward when we join with Cabot," Cimarex said in a statement.

The two companies expect the deal to generate cost synergies of $100 million within two years of closing.

The deal is expected to close later this year.