Cimarex, an independent oil and gas exploration and production company with principal operations in the Permian Basin and Mid-Continent areas of the US, acquired Resolute Energy, an independent oil and gas company focused on the acquisition and development of unconventional oil and gas properties in the Delaware Basin, for $1.6bn. Under the terms of the definitive merger agreement, Resolute shareholders will have the right to receive 0.3943 shares of Cimarex common stock, $35 per share in cash, or a combination of $14 per share in cash and 0.2366 share of common stock. The amount of stock and cash is subject to proration for total stock and cash mix of 60% and 40%, respectively. The consideration represents an approximate 14.8% percent premium to Resolute's closing price of $30.49 on November 16, 2018. "This high-quality, bolt-on asset is tailor-made for Cimarex," said Thomas E. Jorden, Chairman, President and CEO of Cimarex. "It is a perfect fit with our existing Reeves County position and will allow us to leverage our knowledge and deliver superior results over a broader asset base for the benefit of both Cimarex and Resolute shareholders. The Resolute assets are expected to generate free cash flow in 2019, basically funding any additional development capital from the start. I want to compliment Rick Betz and the entire Resolute team on the outstanding job that they have done in building these premier Reeves County assets."