Cimarex Energy Co., Denver, agreed to acquire Resolute Energy Corp. in a cash-stock transaction worth a total of $1.6 billion, including $710 million of Resolute’s long-term debt.
Thomas E. Jorden, Cimarex chairman, president, and chief executive officer, said the acquisition fits the company’s existing Reeves County, Tex., position in the Permian basin.
Cimarex expects the combined companies will generate free cash flow in 2020. The acquisition will increase Cimarex’s Delaware basin assets by 21,100 acres.
Upon closing, Cimarex shareholders will own 94.4% of the combined company with Resolute shareholders owning the rest.
The transaction, expected to be completed early next year, remains subject to Resolute shareholders’ approval and regulatory approvals.