Cimarex-Cabot merger provides diversity, solid economics if not geographic match

摘要

Oil-weighted Permian Basin producer Cimarex Energy and MarcellusShale natural gas operator Cabot Oil & Gas agreed to merge in an allstockmerger Wall Street initially viewed May 24 as a $17 billion marketcapoddity, but which the company CEOs said would providecompelling economics and important asset diversity.But investors and even analysts gave lackluster marks to thetransaction, as both companies' shares sank 7% to 8% over the tradingday, while analysts' post-conference call investor notes gave it mixedreviews.