Coterra to acquire assets of Franklin Mountain Energy, Avant Natural for $3.95B

Coterra Energy (CTRA) announced it has entered into two separate definitive agreements to acquire certain assets of Franklin Mountain Energy and Avant Natural Resources and its affiliates for aggregate consideration of $3.95B, consisting of $2.95B of cash and $1B of Coterra common stock, issued to one of the sellers, subject to certain purchase price adjustments. The cash portion of the consideration is expected to be funded through a combination of cash on hand and borrowings. The transactions are each subject to satisfaction of customary terms and conditions and are expected to close during the first quarter of 2025, with effective dates as of October 1. Neither acquisition is conditioned on the closing of the other acquisition. Coterra will fund the acquisitions with $2.95B of cash and the issuance of approximately 40.9M shares of Coterra common stock to certain sellers, which is valued at approximately $1B. The company plans to finance the cash portion of the purchase price through a combination of cash on hand and new borrowings.