S&P rates Coterra Energy, notes BBB

S&P said it gave Coterra Energy Inc. and its unsecured notes BBB ratings.

Cabot Oil & Gas and Cimarex Energy Co. completed their merger and became Coterra.

“We expect the company to generate significant free cash flow for both debt reduction and dividends to shareholders. Our rating reflects reserves and expected production that are in line with BBB category peers, good geographic diversity in the onshore U.S. segment, the high concentration of natural gas in the company's reserves and production base, and its low cost structure. Our ratings also reflect Coterra's low leverage and FFO to debt of well over 60%,” S&P said in a press release.

The outlook is stable.

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