EQT to Buy Range Resources in All-Stock Deal Valued at More Than $50 Billion
EQT said Monday it will acquire Range Resources in an all-stock deal, creating what the companies called the largest vertically integrated natural gas producer in the United States, with closing expected in the first quarter of 2027.
EQT Corp. said Monday it will acquire Range Resources in an all-stock transaction, creating what the companies called the largest vertically integrated natural gas producer in the United States. The combined company will have a pro forma enterprise value of more than $50 billion, according to the companies.
Under the terms, Range Resources shareholders will receive 0.987 shares of EQT stock for each Range share held. That implied a price of $54.91 per Range share, about 20.6 percent above Range’s closing price on Friday, according to a Reuters calculation. EQT shareholders will own about 73 percent of the combined company, and Range investors will hold about 27 percent. The deal is expected to close in the first quarter of 2027, subject to regulatory and shareholder approvals.
Scale in the Appalachian Basin
The combined company will produce more than 9 billion cubic feet of natural gas equivalent per day and control nearly 3 million net acres in the Appalachian Basin, the companies said. It will also hold more than 30 years of drilling inventory and about 3,700 miles of midstream infrastructure.
EQT’s executive management team will lead the combined company, with headquarters remaining in Canonsburg, Pennsylvania. Two representatives from Range, including Chief Executive Dennis Degner, will join EQT’s board when the deal closes, the companies said.
What the companies expect to save
EQT said it expects $325 million in base annual synergies within two years, across corporate costs, operations and commodities marketing, with a path to more than $600 million over time. The company also projected about $20 billion in cumulative free cash flow over the next five years at recent strip pricing.
Reuters reported that shares of EQT were down 4.6 percent in premarket trading on Monday, while shares of Range Resources were up 10.1 percent. Reuters also reported that growing demand for natural gas from data centers has improved the outlook for United States natural gas, prompting producers to seek larger output and deeper drilling inventories.
Reporting based on coverage by Reuters, The Wall Street Journal and EQT’s announcement.
