Activist investor Kimmeridge on Tuesday called on Coterra Energy to overhaul its leadership and strategy, saying the 2021 merger of Cabot Oil & Gas and Cimarex Energy has failed to deliver value and left it trading at a discount to its peers.
In an open letter, the private investment firm urged the board to appoint an independent, non-executive chair and to refocus operations on its oil-rich Delaware Basin assets, saying the company’s current mix of oil and gas properties has created inefficiency and eroded returns.
“Coterra’s history has been tainted by a boardroom unwilling to acknowledge its own missteps,” said Mark Viviano, Managing Partner at Kimmeridge in the letter.
Kimmeridge said it holds a significant stake in Coterra. Coterra did not immediately respond to a request for comment.
(Reporting by Pooja Menon in Bengaluru; Editing by Arun Koyyur)