Southwestern Energy Co. agreed to acquire Montage Resources Corp. in an all-stock deal that would create the third largest oil and natural gas producer in the Appalachian Basin, with 3 Bcfe/d of combined production. 

Southwestern and Montage Acreage

The deal is valued at $857 million, including debt, according to Raymond James & Associates Inc. It would give the Houston-based independent another 324,500 acres and entry into Ohio, where Montage assets are to the north of Southwestern properties in West Virginia. Southwestern would also gain a footprint in Tioga County, PA, which is west of other acreage it has in the northeastern part of the state. The combined company would hold more than 786,000 net acres spread across Ohio, Pennsylvania and West Virginia.

“This acquisition is expected to deliver on all...