Coterra Energy Inc. (CTRA, Financial) has announced a significant update to its acquisition strategy through the First Amendment to the Membership Interest Purchase Agreement. Originally reported in a Form 8-K filing on November 15, 2024, the company had entered into a Membership Interest Purchase Agreement with Franklin Mountain Energy Holdings, LP, and other associated entities. This agreement has now been amended as of December 28, 2024, to incorporate additional assets and adjust the financial terms.
The amendment includes approximately 1,650 net royalty acres owned by Sandia Minerals, LLC, which were previously categorized as Excluded Assets. This strategic inclusion is set to enhance the value proposition of the acquisition. In line with this expansion, Coterra Energy has agreed to increase the cash consideration by $43 million, reflecting the added value of the newly included assets.
This development underscores Coterra Energy's commitment to optimizing its asset portfolio and enhancing shareholder value through strategic acquisitions. The full details of the Membership Interest Purchase Agreement and its amendment are available in the company's latest Form 8-K filing.
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