EQT to acquire Range Resources in $13 billion deal

A Range Resources facility. EQT to acquire Range Resources in a $13 billion deal. (Image: Range Resources)

EQT Corp. has agreed to acquire Range Resources Corp. in an all-stock transaction valued at approximately $13 billion, combining two major Appalachian Basin producers into what would become the largest natural gas producer in the United States.

The transaction, announced Oct. 26, would create a company with an enterprise value exceeding $50 billion, including debt, and net production of more than 9 billion cubic feet equivalent per day (Bcfe/d).

The combined company would control nearly 3 million net acres of natural gas properties, more than 30 years of drilling inventory and approximately 3,700 miles of midstream infrastructure.

The acquisition represents another major consolidation in the U.S. natural gas industry as producers position themselves to capitalize on anticipated increases in domestic gas consumption, LNG exports and electricity demand from data centers and other large industrial users.

EQT said the combination would create the country’s largest vertically integrated natural gas producer, bringing together extensive upstream resources, gathering and transportation infrastructure and natural gas marketing capabilities.

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Midstream integration and market access

For the midstream sector, the transaction would further consolidate natural gas production and infrastructure in the Appalachian Basin, where pipeline takeaway capacity and access to growing markets remain important considerations for producers.

EQT said the combined asset base would provide opportunities to optimize infrastructure utilization, coordinate production development and improve access to domestic and international natural gas markets.

The company expects to generate $325 million in annual cost savings within two years of closing, primarily through corporate efficiencies, operating improvements and commodities marketing.

Longer term, EQT identified a potential pathway to more than $600 million in annual savings and other financial benefits through development and infrastructure optimization, improved natural gas and natural gas liquids (NGL) marketing margins and the coordination of production growth with long-term supply agreements.

The company also expects the acquisition to strengthen its ability to enter into long-term gas supply arrangements with utilities, LNG developers and other major consumers.

The expanded resource base and integrated infrastructure network could allow EQT to more closely coordinate upstream production with gathering, processing and transportation requirements as demand develops.

Positioning for growing gas demand

The proposed acquisition comes as the U.S. natural gas industry prepares for additional demand from LNG export facilities, gas-fired power generation and data center development.

EQT said the combination would give it greater flexibility to respond to that demand while maintaining a low production cost structure.

The company expects the transaction to reduce its unlevered free cash flow breakeven price to less than $2 per million British thermal units, based on the Henry Hub benchmark.

EQT also projects approximately $20 billion in cumulative free cash flow over the next five years at recent natural gas futures prices.

“This transaction brings together two of the highest-quality, longest-duration asset bases in North America and creates a company uniquely positioned for the next era of natural gas,” said Toby Rice, EQT president and CEO.

Rice said the expanded resource base would strengthen EQT’s ability to negotiate long-term supply arrangements and provide opportunities for production growth supported by contractual demand.

Dennis Degner, president and CEO of Range Resources, said the combination would position the companies to benefit from increasing demand for natural gas and NGLs in domestic and international markets.

“This combination of two highly successful operators with decades of inventory creates opportunities to build long-term value neither could fully realize independently,” Degner said.

Transaction expected to close in 2027

Under the merger agreement, Range Resources shareholders will receive 0.987 EQT shares for each Range share held.

Existing EQT shareholders are expected to own approximately 73% of the combined company, with Range shareholders holding the remaining 27%.

The boards of directors of both companies have unanimously approved the agreement.

The transaction is expected to close in the first quarter of 2027, subject to regulatory approvals, shareholder votes and customary closing conditions.

Following completion, EQT’s existing executive management team will lead the combined company, which will remain headquartered in Canonsburg, Pennsylvania.

Two Range Resources representatives, including Degner, will join EQT’s board of directors.