Range Resources has signed an agreement to acquire Memorial Resource Development (MRD) in a transaction valued at $4.4bn.
Under the agreement, Range will also assume $1.1bn in debt owed by MRD.
Range Resources CEO Jeff Ventura said: "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."
MRD CEO Jay Graham said: "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."
The shareholders of MRD will receive 0.375 shares of Range common stock for each share of its common stock held.
Range said that the deal has an implied value to MRD shareholders of $15.75 per share and represents a 17% premium to the closing price of MRD stock.
Upon completion of the transaction, MRD shareholders are expected to own about 31% of the outstanding shares of Range.
The transaction is subject to certain regulatory approvals and customary closing conditions, and is expected to close during the second half of 2016.
