Donovan Schafer • 18 Comments
Fri, Sep. 16, 12:35 PM
- Range Resources (RRC -5.7%) is sharply lower after announcing the completion of the merger agreement in which RRC will acquire all of MRD's outstanding shares in an all-stock deal valued at ~$4.2B, including debt.
- RRC says the deal enhances its position as an independent producer of natural gas, oil and natural gas liquids with strong core acreage positions in the Appalachian Basin and northern Louisiana.
Fri, May 20, 1:21 PM
- Range Resources (RRC +0.3%) is maintained with a Buy rating at Nomura, which raises its stock price target to $45 from $29, noting that shares have recouped most of their initial losses following Monday's news of the $4.4B acquisition of Memorial Resource Development (MRD +0.1%).
- The deal surprised investors because "RRC didn't need incremental natural gas inventory," Nomura says. "In fact, its existing inventory is perhaps the deepest in the entire natural gas peer group, with operational efficiency in the early stages of deepening this position."
- RRC CEO Jeff Ventura said on Monday that the deal offers geographic diversification and cash flow growth.
- Nomura says it increasingly believes in the attributes of scale going forward in the industry, which it sees "in early stages of driving down sustainable marginal cost with scale being an important go forward component."
Mon, May 16, 7:05 AM
- Range Resources (NYSE:RRC) agrees to acquire Memorial Resource Development (NASDAQ:MRD) in a deal valued at $4.4B including $1.1B of debt.
- The all-stock deal is valued at $15.75/share, a 17% premium to MRD's Friday closing price.
- RRC says the acquisition will strengthen its position in the Appalachian and Gulf Coast regions, providing greater marketing capabilities and opportunities, with added beneficial exposure to growing natural gas demand; gas accounted for 71% of the RRC’s production last year, while oil and other liquids accounted for 29%.
- MRD shareholders will own 31% of the combined company, and MRD will have the right to nominate one of its independent directors to RRC’s board.
- MRD +8.9% premarket.
Nov. 3, 2015, 7:18 PM
- Range Resources (NYSE:RRC) says it has agreed to sell its Nora assets in southwest Virginia to an unnamed buyer for $876M, a move it says will cut its debt by 24%.
- RRC says the assets, which consist of ~3,500 operated wells on ~460K net acres, produced 109M cfe/day of natural gas during Q3, representing 7.5% of the company's net production.
Jul. 16, 2015, 2:57 PM
- Global oil majors have $150B of firepower than can be used for M&A and have the ability to defer another $325B in capex on marginal projects; with so much cash available for potential deals and up to 15M bbl/day of production potentially available for purchase, Goldman Sachs analyst Ruth Brooker sees a pickup in M&A activity in the oil and gas space coming soon.
- The firm thinks shale production has the potential to double by 2025, and Brooker argues majors likely will take the current opportunity to increase their exposure to U.S. shale at historically low prices.
- Goldman sees seven companies as most likely to draw buyout attention from the majors: EOG, PXD, CLR, COG, NBL, APC, RRC.
Sep. 30, 2014, 10:34 AM
- The positive market reaction following Encana's deal for Athlon Energy and other recent transactions may put pressure on inventory short majors and other large-cap companies to pursue M&A activity to increase their quality inventory in the U.S. onshore market, according to a UBS report.
- UBS lists six top potential targets, some of which already are swirling in the rumor mill, including Pioneer Natural Resources (NYSE:PXD), with its own fracking fleet and huge Midland Basin play making it a very attractive but expensive target.
- The firm's other five top M&A candidates: COG, CXO, OAS, RRC, WLL.
Sep. 21, 2011, 11:17 AM
Jul. 15, 2011, 10:39 AM
BHP's (BHP -1.5%) willingness to pay a 65% premium for Petrohawk (HK +62.7%) shows that mining companies will pay top dollar for natural gas plays (UNG +2.5%), despite the stubbornly low price of the commodity itself. JPMorgan's Mark Lear says acquisition targets could include: RRC +6.6%, BEXP +6.1%, KOG +5.7%. Also surging: COG +7%, CHK +6.7%.| Jul. 15, 2011, 10:39 AM | 3 Comments
May 6, 2011, 9:48 AM
Morningstar sees plenty of debt capital capacity available at attractive terms to fund leveraged buyouts, which should lead to resurgence in M&A activity among private equity groups. Its latest list of top takeover candidate investment ideas: ATLN, AKAM, AEO, CLWR, CLD, LEAP, MYGN, HK, RRC, SNV.| May 6, 2011, 9:48 AM