Cabot Oil merges with Climarex Energy

Cabot and Climarex are teaming up to build an enterprise that might be the next big thing in the American oil and gas industry.

A photo of Cabot Oil & Gas and Climarex Energy containers on a rig
Cabot Oil & Gas and Cimarex

American oil and energy companies, Cabot Oil & Gas and Climarex Energy, have announced a merger that is to birth a new oil and gas enterprise worth $17 billion.

Following the announcement of the merger, both companies witnessed a sharp decline in their respective stock market performance with Climarex dropping by 7.2% to $66.07 while Cabot came down by 6.9% to $16.59.

The ownership division of the new organization to be birthed by Cabot Oil and Climarex’s merger is 50:50 with Climarex shareholders getting 4.0146 shares from Cabot’s stocks.