NEW YORK (TheStreet) -- Shares of Eagle Rock Energy Partners (EROC) were gaining 13.5% to $2.78 on heavy trading volume following the announcement that Vanguard Natural Resources (VNR) will acquire the rival Houston-based oil company.
Shares of Vanguard were gaining 1.9% to $16.79.
Vanguard will pay $474 million in stock to acquire Eagle Rock and assume its $140 million of debt. Eagle Rock will become a subsidiary of Vanguard following the acquisition.
"The assets being acquired are attractive bolt-ons to our Mid-Continent, Permian and Gulf Coast basin operations," Vanguard President and CEO Scott W. Smith said in a statement. "Eagle Rock has a meaningful position in the SCOOP and STACK plays which will provide attractive drilling opportunities for the next several years."
The deal is expected to close in the third quarter of 2015.
About 2.2 million shares of Eagle Rock were traded by 10:52 a.m. Friday, above the company's average trading volume of about 359,000 shares a day.