WPX Downtown HQ

[Oil Capital]

Probably not. This is the opposite of the DVN-WPX merger because there's no operational overlap between Cabot and Cimarex. Don't forget that Cimarex in Tulsa is the spin-off E&P division of Helmerich Payne. Cabot likely has no ability to take over management of these assets. Current Cimarex CEO will also be the new entity's CEO going forward. The only folks concerned at this moment should be the Cabot/Cimarex execs who just became redundant.

Weird merger though.

FIFY.  It's very likely a combination Cabot and Cimarex execs who will become redundant.  From an article about the merger:  "Dinges [CEO of Cabot] will serve as executive chair of the board of the newly combined business, while Cimarex CEO Thomas Jorden will lead the company as CEO. The remainder of the company's leadership team will include executives from both Cabot and Cimarex."  And the HQ is going to be in Houston (home of Cabot), not Denver (home of Cimarex).

[TulsaBeMore]

Probably not. This is the opposite of the DVN-WPX merger because there's no operational overlap between Cabot and Cimarex. Don't forget that Cimarex in Tulsa is the spin-off E&P division of Helmerich Payne. Cabot likely has no ability to take over management of these assets. Current Cimarex CEO will also be the new entity's CEO going forward. The only folks concerned at this moment should be the Cabot execs who just became redundant.

Weird merger though.

Lord knows I don't want Cimarex to go, but if they do I hope they take that hideous building with them.  (just found out there are words they will not let you use here at TulsaNow.  I replaced "ugly-donkey" with hideous)

[Jeff P]

Probably not. This is the opposite of the DVN-WPX merger because there's no operational overlap between Cabot and Cimarex. Don't forget that Cimarex in Tulsa is the spin-off E&P division of Helmerich Payne. Cabot likely has no ability to take over management of these assets. Current Cimarex CEO will also be the new entity's CEO going forward. The only folks concerned at this moment should be the Cabot execs who just became redundant.

Weird merger though.

It's a weird merger for sure. Most of the sell-side analysts were pretty confused about it and there were some pretty pointed questions on the investor call the other day.

And yeah, the "synergies" will be from closing the Cimerex Denver HQ office since the new company HQ will be Houston. They specifically said in the call that they will maintain their regional offices, and Tulsa was actually specifically mentioned on the Cimerex side.

For those who don't know, Cabot is almost completely focused in Appalachia/Marcellus, while Cimerex is almost completely focused on Permian/Mid-Con.  So you don't really get any "operational" synergies at all (hence little-to-not impact to regional offices), which is one of the reasons the analysts were so confused by the deal.

[Tulsan]

FIFY.  It's very likely a combination Cabot and Cimarex execs who will become redundant.  From an article about the merger:  "Dinges [CEO of Cabot] will serve as executive chair of the board of the newly combined business, while Cimarex CEO Thomas Jorden will lead the company as CEO. The remainder of the company's leadership team will include executives from both Cabot and Cimarex."  And the HQ is going to be in Houston (home of Cabot), not Denver (home of Cimarex).

Thanks - had it in my head they were keeping Denver not Houston. Either way seems Tulsa gets to stay. For now.

[LandArchPoke]

It's a weird merger for sure. Most of the sell-side analysts were pretty confused about it and there were some pretty pointed questions on the investor call the other day.

And yeah, the "synergies" will be from closing the Cimerex Denver HQ office since the new company HQ will be Houston. They specifically said in the call that they will maintain their regional offices, and Tulsa was actually specifically mentioned on the Cimerex side.

For those who don't know, Cabot is almost completely focused in Appalachia/Marcellus, while Cimerex is almost completely focused on Permian/Mid-Con.  So you don't really get any "operational" synergies at all (hence little-to-not impact to regional offices), which is one of the reasons the analysts were so confused by the deal.

Thanks for that insight - glad they specifically mentioned Tulsa. It would be baffling if they closed this office, but I think we've all seen some pretty bizarre things happen after mergers.

[SXSW]

Thanks - had it in my head they were keeping Denver not Houston. Either way seems Tulsa gets to stay. For now.

Denver has lost most of its O&G HQ's and large regional offices with the exception of BP Lower 48, Encana (now Ovintiv) and DCP Midstream which is in the process of moving out of downtown to the Tech Center.  

[shavethewhales]

[SXSW]

^ That parking lot and its neighbor to the east are the two biggest holes remaining in the Arts District.  Redeveloping these lots into mixed-use housing would tie together all of the new projects along Archer which has become one of the more pedestrian-friendly streets downtown.  The TDA lot and LA King site at Cameron & Main are up there too. 

[Laramie]

Nice development for Tulsa that will be filled with a reputable tenant.  Just wait and see.

[tulsabug]

It's a weird merger for sure. Most of the sell-side analysts were pretty confused about it and there were some pretty pointed questions on the investor call the other day.

And yeah, the "synergies" will be from closing the Cimerex Denver HQ office since the new company HQ will be Houston. They specifically said in the call that they will maintain their regional offices, and Tulsa was actually specifically mentioned on the Cimerex side.

For those who don't know, Cabot is almost completely focused in Appalachia/Marcellus, while Cimerex is almost completely focused on Permian/Mid-Con.  So you don't really get any "operational" synergies at all (hence little-to-not impact to regional offices), which is one of the reasons the analysts were so confused by the deal.

I don't have any inside insight but it sounds like two relatively small companies merging to help bolster themselves in a shrinking market. I think we're going to be seeing a lot of consolidation in the oil/gas industry over the next 10 years.

[tulsabug]

Nice development for Tulsa that will be filled with a reputable tenant.  Just wait and see.

Hope so but a disreputable tenant would be fine too. I'd be down with Blackbeard Looting & Pillaging Inc coming in there - some Jolly Rogers flying over downtown would be pretty nifty. 

[shavethewhales]

[LandArchPoke]

Thanks for the pics, I like the brick (hopefully it doesn't look different/cheaper in person) but it looks like they're using one's that have a more 'aged' look and should make the building fit in a bit better with the surrounding area.

[SXSW]

I've noticed they have rebranded this project as 222 N Detroit

[shavethewhales]

https://www.commercialoklahoma.com/properties/222-n-detroit-ave/

Not sure how much space is on each floor, but it doesn't appear that much has rented out yet.