One-Page Deal Sheet
Coterra Expands Permian Footprint with $3.95 Billion Acquisition of Franklin Mountain and Avant Assets
Calculated Metrics( EV/Category)
Transaction Details:
Coterra Energy announced the acquisition of Permian Basin assets from Franklin Mountain Energy and Avant Natural Resources for $3.95 billion (comprised of $2.95 billion in cash and $1.0 billion in Coterra common stock). Franklin is backed by EnCap Investments, and Avant is backed by KKR, marking another significant private equity-backed upstream transaction.
The acquired assets include approximately 49,000 net highly contiguous acres in Lea County, New Mexico, and are expected to produce 70–80 Mboe/d in 2025, including 40–50 Mbbl/d of oil, representing an oil mix of approximately 50%–71%. The package adds 400–550 net drilling locations, targeting oil-rich formations such as Bone Spring, Avalon, Harkey, and the emerging Lower Wolfcamp/Penn Shale.
Transaction Benefits:
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Accretive Financial Impact: The deal is estimated to be >15% accretive to 2025–2027 per share Discretionary Cash Flow and Free Cash Flow, and accretive to Net Asset Value.
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Enhanced Scale & Inventory: Expands Coterra’s Permian footprint to an ~83,000 net acre focus area and increases Permian net locations by ~25%, with 15+ years of inventory
- Acquisition valued at 3.8x estimated 4Q24 annualized EBITDAX and approximately 13% estimated 2025 Free Cash Flow yield at $70/bbl WTI and $3.00/MMBtu Henry Hub price assumptions
- Coring up position in the northern Delaware Basin with approximately 49,000 net highly contiguous acres concentrated in Lea County, New Mexico, creating a new approximately 83,000 net acre focus area within the Coterra portfolio
| Announced Date | Buyer | Seller | Deal Value($mm) | Location | Category |
|---|---|---|---|---|---|
| Mar-10-2026 |
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Click here | Texas | E&P |
| Sep-02-2025 |
- |
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Click here | Texas | E&P |
| May-07-2025 |
- |
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Click here | New Mexico | E&P |
| May-03-2025 |
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Click here | New Mexico | E&P |
| Jul-30-2024 |
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Click here | Texas | E&P |
| Date | Deal Headline | Price | $/acre |
|---|---|---|---|
| Feb-02-2026 | Devon Acquires Coterra Energy; Bulk Up on Permian, Adds Gas Bank | - |
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| Nov-03-2025 | SM Energy, Civitas Strike $12.8B All-Stock Merger | - |
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| Sep-02-2025 | Crescent Energy Acquires Vital | - |
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