Shareholders approve Cabot, Cimarex merger
Monday, October 4, 2021
On Wednesday, Cabot Oil & Gas Corp and Cimarex Energy Co shareholders approved the proposed merger between the two companies, forming one of the largest oil and gas firms in the U.S., according to Reuters.
The merger was announced in May. It brings together Cabot’s gas-rich Marcellus shale positions and Cimarex’s oil-heavy acres in West Texas. The combined entity, which will be called Coterra Energy, has an estimated enterprise value of $17 billion.
The deal is expected to close in the fourth quarter of 2021. Cimarex shareholders will receive 4.0146 shares of Cabot common stock for each share held and own 50.5% of the combined entity and Cabot shareholders the rest.
Learn more: Reuters > Cabot, Cimerax shareholders approve merger to create oil & gas giant
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.