Shale drillers agree to merge in $7.4B deal
Tuesday, June 1, 2021
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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How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
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Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
What are royalties?
Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.