Business Strategy and Outlook| Dave Meats, CFA |
Coterra Energy was formed after the 2021 merger of equals between Cabot Oil & Gas and Cimarex Energy. The combined business produces oil and natural gas in three U.S. regions. Natural gas is the primary target in the Marcellus Shale (Pennsylvania), where Cabot was focused. But the firm's legacy Cimarex assets, in the Permian Basin (Texas and New Mexico), and Anadarko Basin (Oklahoma) are more oil-weighted. Management believes the combined business will be stronger because of geographic diversificaton and overhead synergies.