Coterra Energy will spend $3.95 billion to expand its Permian Basin footprint
Coterra Energy announced on Wednesday that it will buy certain assets from privately-held Avant Natural Resources, and Franklin Mountain Energy. The deal is worth $3.95 billion and includes cash and stock.
The Permian Basin is a popular place for producers to expand their stock. The Permian Basin, located between Texas and New Mexico is a highly productive shale-oil basin with undeveloped reserves, a robust infrastructure, and large production.
Coterra announced its announcement just days after it reported a loss for the third quarter, due to lower oil and gas prices.
According to the company, these deals will increase Coterra’s New Mexico and Permian Net Locations by approximately 75% and 25 %, respectively.
The company stated that the acquired assets would add "significant oil volume in 2025".
Coterra said it expects to finance the purchase with $2.95 Billion in cash, and that the company will sell 40.9 M shares of its common stock, valued at approximately $1 billion.
The transaction is expected to be completed in the first quarter 2025.
Coterra said that the company's production would increase by 60,000-70,000 barrels per day.
(source: Reuters)