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Range Acquires Memorial Resource Development in $4.2B Deal

Announced Date
May 16,2016
Deal Value $
4,200,000,000
Net Acres
220,000
Transaction Type
Corporate
Buyer
Seller
Source Documents:
   Source Link
   Source Link
Location
Region
Ark-La-Tex

Country
United States

State
Louisiana

County
Lincoln

Play


Production & Reserves
Production
420 Mmcfe/d

Reserves
5 Tcfe (1P)


Multiples
Production ($/Mcfe/d)
10,000

$Price/Net Acre
19,091

$Price/Adj. Net Acre
15,273

Adj. $/acre is based on production @2,000 Mcfe/d

Transaction Details: 

Closing Announcement - September 16, 2016

Range Resources and Memorial Resource Development announced the completion of the merger agreement under which Range will acquire all of the outstanding shares of common stock of MRD in an all-stock transaction valued at approximately $4.2 billion, including the assumption of MRD's net debt. 

The transaction, which was approved by Range and Memorial shareholders at special meetings held on September 15, 2016, enhances Range's position as a premier independent natural gas, oil and NGL producer in the United States with exceptional core acreage positions in both the Appalachian Basin and Northern Louisiana.   


Initial Announcement - May 16, 2016

Range Resources Corp. and Memorial Resource Development Corp. have announced a definitive merger agreement under which Range will acquire all of the outstanding shares of common stock of MRD in an all-stock transaction valued at $4.4 billion. This valuation includes the assumption of MRD's net debt, which was $1.1 billion as of March 31, 2016.

 

Jeff Ventura, Range's CEO, said, "This is an exciting announcement that brings together two high-quality unconventional producers with large de-risked, high-return projects into one portfolio. This acquisition will give Range strategic positioning in both the Appalachian and Gulf Coast regions, providing greater marketing capabilities and opportunities, with added beneficial exposure to growing natural gas demand. The transaction is also accretive to our cash flow, bolsters our credit profile and enhances the overall portfolio. Like Range, the MRD team has a strong culture and track record of safe and efficient operations. We look forward to adding their talents and capabilities to our company, strengthening one of the top overall technical teams in the industry. We believe this combination will create significant value for our existing and new shareholders."

Jay Graham, MRD's CEO, stated, "This transaction combines two complementary companies with a deep, stacked pay portfolio of assets in two leading unconventional resource basins. The cash flow from our strong asset base and the all-stock nature of the transaction will allow our shareholders to benefit from the combined assets. I am confident the combined team, strong balance sheet and premier assets are well-positioned for further success and shareholder value creation."

Under the definitive agreement, MRD shareholders will receive 0.375 shares of Range common stock for each share of MRD common stock held. Based on the Range closing price on May 13, 2016, the transaction has an implied value to MRD shareholders of $15.75 per share, representing a 17% premium to the closing price of MRD stock. Following the transaction, shareholders of MRD are expected to own approximately 31% of the outstanding shares of Range. MRD will have the right to nominate an independent director from MRD to a seat on Range's Board.

The Boards of Directors of both companies have unanimously approved the terms of the agreement, and have recommended that both shareholder groups approve the transaction. Completion of the transaction is subject to the approval of the respective companies' shareholders, certain regulatory approvals and customary closing conditions. The transaction is expected to close in the second half of 2016.

Credit Suisse Securities (USA) LLC acted as exclusive financial advisor and Sidley Austin LLP acted as legal advisor to Range for the transaction. Morgan Stanley & Co LLC and Barclays Capital Inc. acted as financial advisors and Vinson & Elkins LLP and Akin Gump Strauss Hauer & Feld LLP acted as legal advisor to MRD and Natural Gas Partners, respectively.

Ark-La-Tex Deal Activity In Last 12 Months



Other Ark-La-Tex Region's Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategory
Jan-11-2024 - - Click here West Virginia  E&P
Dec-15-2023 - - Click here Texas  E&P
Jul-13-2022 - - Click here Louisiana  E&P
Jul-11-2022 - - Click here Texas  E&P
Jun-21-2022 - - Click here   E&P

Price History



Date Deal Headline Price$/acre
Aug-04-2020 Range Resources Exits Ark-La-Tex; Sells Lousiana Asset for $245MM - -
Nov-19-2018 PE-back Aethon Acquires QEP's Haynesville Asset For $735 Million - -
Jun-29-2018 Osaka Gas Acquires Haynesville Shale Property - -

Other Memorial Resource Development Corp. Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategory
Sep-21-2015 - - Click here Louisiana  E&P
Feb-24-2015 - - Click here Louisiana  E&P
Mar-05-2014 - - Click here Texas  E&P
Jul-15-2013 - - Click here New Mexico  E&P
Mar-28-2013 - - Click here Texas  E&P

Other Range Resources Corp Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategory
Aug-04-2020 - - Click here Louisiana  E&P
Oct-21-2019 - - Click here Pennsylvania  E&P
Jul-19-2019 - - Click here Pennsylvania  E&P
Jul-19-2019 - - Click here Pennsylvania  E&P
Oct-15-2018 - - Click here Pennsylvania  E&P