EQT and Range Resources agreed on Monday to merge in an all-stock transaction that will form the largest natural gas producer in the United States, the companies said. The combined enterprise value is expected to exceed $50 billion. EQT shares fell 1.5% in late afternoon trading, while Range Resources jumped past 17%.
Energy stocks edged higher late Monday afternoon despite mixed signals in the broader market. The NYSE Energy Sector Index was fractionally higher, and the State Street Energy Select Sector SPDR ETF (XLE) rose 0.3%. The Philadelphia Oil Service Sector Index climbed 1%, while the Dow Jones US Utilities Index slipped fractionally lower.
Commodity prices moved in different directions. Front-month West Texas Intermediate crude oil fell 1.3% to $101.98 a barrel, and the global benchmark Brent crude contract dropped 0.6% to $115.98 a barrel. Henry Hub natural gas futures decreased 0.5% to $2.63 per 1 million BTU.
In other corporate news, ConocoPhillips announced it will implement a planned reduction to its Canadian workforce on Tuesday. The company did not disclose the number of jobs to be cut, but a spokesperson confirmed to MT Newswires in an email that the reduction will affect both employees and contractors. ConocoPhillips shares were up 0.4%.
Ovintiv signed a definitive deal to acquire Logan Energy for 1.40 Canadian dollars ($1.00) per share in cash. The total transaction value is about CA$1.26 billion, including assumed debt, the companies said. Ovintiv shares rose 0.3%.
Alliance Resource Partners shares gained 1.4% after the company reported third-quarter earnings of $1.08 per diluted unit on Monday, up from $0.73 a year earlier. Two analysts polled by FactSet had expected earnings of $0.96 per unit.