U.S. Cimarex Energy Co to merge with Resolute Energy in $1.6 bln deal

U.S. oil and gas company Resolute Energy Corp announced that it has agreed to be acquired by Cimarex Energy Co. (XEC), a petroleum and natural gas exploration and production company, in a cash and stock merger valued at $35.00 per share for a total purchase price of about $1.6 billion.

Cimarex said that strategic and financial benefits of the acquisition include an increase in the scale of key Delaware Basin asset, such that net acres in Reeves County, Texas, will increase 34 percent with the addition of 21,100 acres.

The transaction is also expected by Cimarex to be accretive to 2019 key per-share metrics including earnings and non-generally accepted accounting principles cash flow. Further, the company also expects the combined companies to generate free cash flow in 2020.

The deal, expected to close by the end of the first quarter of 2019, is subject to the approval of Resolute shareholders. Upon closing of the move, Cimarex shareholders will own around 94.4 percent of the combined company, while Resolute shareholders will own about 5.6 percent.