Big merger is a plus for Cimarex

Article Excerpt

CIMAREX ENERGY, $69.76 (New York symbol XEC; TSINetwork Rating: Extra Risk) (Shares o/s: 102.8 million; Market cap: $7.3 billion; Divd yield: 1.6%) is now merging with Cabot Oil & Gas (symbol COG on New York). The companies have yet to come up with a new name for the combined entity, which will be 50.5% owned by Cimarex. Cabot and Cimarex believe that having a broader mix of assets in oil, natural gas and natural-gas liquids should protect the new company against price swings for individual commodities. We’ll continue to update our advice as the merger unfolds. But for now we still like Cimarex’s outlook—and the merger should enhance its prospect. Cimarex Energy is a buy. buy…

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