EQT and Range Resources agreed on Monday to combine in an all-stock transaction that will create the largest natural gas producer in the US. The companies said the deal carries a combined enterprise value of more than $50 billion.
The announcement drove a sharp divergence in the two firms' shares. EQT stock fell 1.9%, while Range Resources jumped past 17%.
Energy stocks were mixed in the broader market Monday afternoon. The NYSE Energy Sector Index decreased 0.2%, while the State Street Energy Select Sector SPDR ETF (XLE) added 0.5%. The Philadelphia Oil Service Sector Index rose 1.2%, and the Dow Jones US Utilities Index was fractionally lower.
Commodity prices also moved in different directions. West Texas Intermediate crude oil dropped 1.1% to settle at $102.18 a barrel, while Brent crude declined 0.5% to $116.10 a barrel. Henry Hub natural gas futures fell 0.5% to $2.63 per 1 million BTU.
In other corporate news, ConocoPhillips said it will implement a planned reduction to its Canadian workforce on Tuesday. A company spokesperson confirmed to MT Newswires in an email that the cuts will affect both employees and contractors, though the number of jobs was not disclosed. ConocoPhillips shares were up 0.3%.
Ovintiv signed a definitive deal to acquire Logan Energy for 1.40 Canadian dollars ($1.00) per share in cash. The companies said the total value is about CA$1.26 billion, including assumed debt. Ovintiv shares rose 0.8%.