Coterra Floats $1.5 Billion in New Debt to Help Buy Permian Assets

Three weeks ago, MDN told you that Coterra Energy, formed in 2021 by the merger of the Marcellus-focused Cabot Oil & Gas and the Permian/Anadarko-focused Cimarex Energy, has succumbed to the siren song of more oil drilling (see Siren Song: Coterra Energy Buys Permian Assets for $4 Billion). Coterra is buying “certain assets of Franklin Mountain Energy and Avant Natural Resources” located in the Permian for $3.95 billion. Yesterday, Coterra unveiled a plan to issue unsecured notes (we call them IOUs) of $1.5 billion to help finance the purchase.

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