Range Resources Corp said on Monday it would buy fellow oil and gas producer Memorial Resource Development Corp for $3.3 billion plus assumption of $1.1 billion in debt to expand in the Appalachian and U.S. Gulf Coast regions.
Memorial Resource Development’s shareholders will receive 0.375 of a Range Resources share for each share they hold, the companies said.
The all-stock deal is valued at $15.75 per share, a 17 percent premium to Memorial Resource Development’s Friday close.
About 95 percent of Range Resources’ production comes from its Appalachian operations.
Memorial Resource Development’s shareholders are expected to own about 31 percent of Range Resources after the close of the deal, expected in the second half of the year.
Memorial Resource Development will also have the right to nominate an independent director to Range Resources’ board.
Credit Suisse Securities (USA) LLC was financial adviser to Range Resources, while Sidley Austin LLP was its legal adviser.
Morgan Stanley & Co LLC and Barclays Capital Inc were Memorial Resource Development’s financial advisers and Vinson & Elkins LLP and Akin Gump Strauss Hauer & Feld LLP were its legal advisers.