$RRC to Acquire $MRD for $15.75

This is a unicorn. A merger in the energy sector, something that might very well light a fire under midsized companies, especially with oil spiking this morning.

Range Resources is buying Memorial Resource Devlopment for $15.75.

The combination — one of few U.S. energy mergers during the market rout — will give Fort Worth-based Range access to gas and oil properties in north Louisiana, adding to its operations in Oklahoma, Pennsylvania and Texas. Both companies have seen their shares drop during the commodities slump, which dragged down U.S. gas prices to a 17-year low in March amid a supply glut.

The transaction is “accretive to our cash flow, bolsters our credit profile and enhances the overall portfolio,” Jeff Ventura, Range’s chief executive officer, said in a statement.

Considering the debt load of some of these companies, getting bigger is better from a credit point of view.

RRC is down 2% on the news.