US based oil and gas firm Range Resources has agreed to acquire energy company Memorial Resource Development (MRD) in a deal worth $4.4bn including its debt.
Under the terms of the deal, shareholders of MRD will get 0.375 shares of Range common stock for each share of MRD common stock held.
Range expects the Memorial’s assets in Louisiana to complement its prime natural gas resources in Appalachia and existing wells across Pennsylvania, Texas and Oklahoma.
Range Resources CEO Jeff Ventura said: "This is an exciting announcement that brings together two high-quality unconventional producers with large de-risked, high-return projects into one portfolio.
"The transaction is also accretive to our cash flow, bolsters our credit profile and enhances the overall portfolio.
"We look forward to adding their talents and capabilities to our company, strengthening one of the top overall technical teams in the industry."
The acquisition is expected to strengthen Range’s position in the Appalachian and Gulf Coast regions while providing more marketing capabilities.
Memorial Resource Development CEO Jay Graham said: "This transaction combines two complementary companies with a deep, stacked pay portfolio of assets in two leading unconventional resource basins.
"I am confident the combined team, strong balance sheet and premier assets are well-positioned for further success and shareholder value creation."
Upon completion of the deal, MRD shareholders are expected to own approximately 31% of the Range’s outstanding shares.
Subject to the approval of the respective companies’ shareholders, certain regulatory approvals and customary closing conditions, the transaction is planned to be completed in the second half of 2016.
Image: Range expects the acquisition of Memorial’s assets in Louisiana to complement its prime natural gas resources in Appalachia. Photo: courtesy of suwatpo/ FreeDigitalPhotos.net.