The Cabot-Cimarex merger was a rare exception
Cabot deal may prove exception rather than rule
Merger showcases optimism in gas prospects but may not signal a wider shift towards multi-basin M&A
The merger between Delaware basin operator Cabot Energy and Marcellus dry gas producer Cimarex was a rare exception of geographical diversity over in-basin consolidation, the latter having been the dominant deal-making trend for US shale this year. The merger of equals will create a diversified company valued at approximately $17bn and leverage $100mn in annual cost synergies. But rather than consolidating a position in one basin—the industry’s prevailing strategy—the pro forma company is looking to broaden its portfolio across oil and gas. “Public E&Ps have been more likely to exit towards single basin status than strike out into new areas, as Oasis Petroleum did with its sale of Permia
Also in this section
24 January 2025
Domestic companies in Nigeria and other African jurisdictions are buying assets from existing majors they view as more likely to deliver production upside under their stewardship
23 January 2025
The end of transit, though widely anticipated, leaves Europe paying a third more for gas than a year ago and greatly exposed to supply shocks
23 January 2025
The country’s government and E&P companies are leaving no stone unturned in their quest to increase domestic crude output as BP–ONGC tie-up leads the way
22 January 2025
The return of Donald Trump gives further evidence of ‘big oil’ as an investable asset, with the only question being whether anyone is really surprised
