Coterra Energy Inc. announced definitive agreements to acquire assets from Franklin Mountain Energy and Avant Natural Resources for a total of US$3.95 billion.

The acquisitions are independent of each other and aim to bolster Coterra's position in the Permian Basin. The acquisition will expand Coterra's holdings in the northern Delaware Basin by approximately 49,000 net acres in Lea County, New Mexico. This creates a new 83,000 net acre focus area within Coterra's portfolio and the assets include 400–550 net Permian locations, targeting multiple formations.

Coterra will finance the cash portion with a mix of cash reserves and new borrowings, with JPMorgan Chase Bank, PNC Capital Markets and TD Securities providing committed financing.

Legal and advisory support includes Gibson, Dunn & Crutcher as Coterra's legal advisor, with Veriten as an independent advisor.

Jefferies serves as Franklin Mountain Energy's financial advisor, with Kirkland & Ellis as legal advisor.

TPH&Co and Petrie Partners are financial advisors to Avant Natural Resources, with Kirkland & Ellis as legal advisor.

The deal is expected to be completed in the first quarter of 2025, subject to customary closing conditions.