Cabot Oil & Gas Corp. has agreed to merge with Cimarex Energy Co. in an all-stock transaction valued at roughly $7.4 billion, according to Bloomberg.
The deal will give Cabot shareholders about 49.5% of the combined entity and Cimarex shareholders will control the remainder. The newly merged company will be renamed and based in Houston.
The deal is in line with industry trends as drillers are getting more acquisitive as a sustained recovery in energy prices continues and companies respond to investor pressure to improve financial and operational performance.
Learn more: Pittsburgh Post-Gazette > Shale drillers Cabot, Cimarex to merge in $7.4 billion deal
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