Coterra Energy Inc., a Houston-based exploration and production company, has announced the acquisition of assets from Franklin Mountain Energy and Avant Natural Resources for a total of $3.95 billion. The transactions involve two separate deals.
According to a news release, Coterra operates in key regions including the Permian Basin, Marcellus Shale, and Anadarko Basin. The newly acquired assets will provide the company with an oil-weighted focus area in New Mexico adjacent to its existing operations.
"We are thrilled to announce the pending acquisition of two high-quality Permian Basin asset packages," said CEO Tom Jorden. He added that these acquisitions create an expanded core area in New Mexico that aligns with Coterra's organizational strengths. Jorden further said that, "In addition to adding significant oil volumes in 2025, the acquired assets provide inventory upside to established and emerging oil-weighted formations."
The financial structure of the deal includes $2.95 billion in cash and 40.9 million shares of Coterra stock valued at $1 billion. The company anticipates that by 2025, oil production from these assets will reach between 40,000 to 50,000 barrels per day, with total equivalent production ranging from 60,000 to 70,000 barrels per day.