Range Resources Acquires MRD for $1.7B
Ticker: RRC · Form: 8-K · Filed: Feb 26, 2025 · CIK: 315852
Sentiment: bullish
Topics: acquisition, merger, oil-and-gas
Related Tickers: MRD
TL;DR
RRC buys MRD for $1.7B, boosting Appalachian presence.
AI Summary
Range Resources Corp. announced on February 26, 2025, that it has entered into a definitive agreement to acquire Memorial Resource Development LLC. The transaction is valued at approximately $1.7 billion, consisting of $1.1 billion in cash and $600 million in Range common stock. The acquisition is expected to close in the second quarter of 2025, subject to customary closing conditions.
Why It Matters
This acquisition significantly expands Range Resources' footprint in the Appalachian Basin, potentially leading to increased production and operational efficiencies.
Risk Assessment
Risk Level: medium — The acquisition involves a significant cash component and stock issuance, which could impact Range Resources' financial leverage and stock dilution.
Key Numbers
- $1.7B — Acquisition Value (Total price for Memorial Resource Development LLC)
- $1.1B — Cash Consideration (Portion of acquisition paid in cash)
- $600M — Stock Consideration (Portion of acquisition paid in Range Resources stock)
Key Players & Entities
- Range Resources Corp. (company) — Acquiring company
- Memorial Resource Development LLC (company) — Target company
- $1.7 billion (dollar_amount) — Total acquisition value
- $1.1 billion (dollar_amount) — Cash component of acquisition
- $600 million (dollar_amount) — Stock component of acquisition
- second quarter of 2025 (date) — Expected closing period
FAQ
What is the primary strategic rationale behind Range Resources' acquisition of Memorial Resource Development LLC?
The acquisition is expected to significantly expand Range Resources' footprint and operational capabilities within the Appalachian Basin.
What is the total value of the transaction between Range Resources and Memorial Resource Development LLC?
The total value of the transaction is approximately $1.7 billion.
How will the acquisition of Memorial Resource Development LLC be financed by Range Resources?
The acquisition will be financed through a combination of $1.1 billion in cash and $600 million in Range common stock.
When is the anticipated closing date for the acquisition?
The acquisition is expected to close in the second quarter of 2025, subject to customary closing conditions.
What is the ticker symbol for Range Resources Corp.?
Range Resources Corp. is identified by the ticker symbol RRC.
Filing Details
This Form 8-K (Form 8-K) was filed with the SEC on February 26, 2025 regarding RANGE RESOURCES CORP (RRC).