EQT to buy Range in $50bn-plus gas merger

EQT Corp has agreed to acquire Range Resources in an all-stock transaction that values the combined company at more than $50 billion, including debt. Range Resources shareholders will receive 0.987 EQT shares for each share held, valuing the equity component of the deal at about $12.83 billion based on 233.68 million Range shares outstanding. The implied offer price of $54.91 per Range share represents a premium of about 20.6% to Range’s last closing price on the preceding Friday. Both companies’ boards of directors have unanimously approved the merger agreement.

Following completion of the transaction, existing EQT shareholders are expected to own approximately 73% of the combined company, while Range shareholders are expected to own about 27%. The deal is structured as a 100% stock transaction and is expected to provide BBB-quality credit metrics at closing. The merger is targeted to close in the first quarter of 2027, subject to regulatory approvals, clearances, shareholder approvals at both companies, and other customary closing conditions.

The combination will create what the companies describe as the largest vertically integrated natural gas producer in the United States. The merged business is expected to produce more than 9 billion cubic feet of natural gas equivalent per day. It will control nearly 3 million net acres in the Appalachian Basin and hold more than 30 years of drilling inventory, underscoring the long-duration nature of its resource base.

In addition to upstream assets, the combined company will own about 3,700 miles of midstream infrastructure. Company leaders highlight that the transaction brings together two large, long-duration asset bases in North America, positioning the new entity for what they describe as the next era of natural gas. Headquarters for the combined company will remain in Canonsburg, Pennsylvania, with EQT’s executive management team leading the business.

EQT expects the acquisition to generate approximately $325 million in annual savings within two years, driven by corporate, operational and marketing efficiencies. There is also a stated pathway to more than $600 million in long-term synergies. The company projects cumulative free cash flow of around $20 billion over the next five years at recent strip pricing, reflecting the enlarged scale and cost base of the combined portfolio.

EQT anticipates that the transaction will improve its unlevered free cash flow breakeven to below $2 per million British thermal units. The company notes that this measure reflects the average Henry Hub natural gas price required to generate positive unlevered free cash flow. Management expects that the enlarged footprint, asset quality and integration of midstream assets will underpin resilience through commodity cycles.

Upon closing, two representatives from Range, including President and CEO Dennis Degner, will join EQT’s board of directors. Citi and RBC Capital Markets are acting as financial advisors to EQT, while Evercore and J.P. Morgan Securities are advising Range. Both companies plan to cancel their previously scheduled third-quarter 2026 earnings conference calls on October 28, 2026, though they intend to release their results after the market close on October 27, 2026.

The deal announcement came against a backdrop of growing demand for US natural gas from data centers, which has improved the sector’s outlook and encouraged producers to pursue larger scale, deeper drilling inventories and stronger marketing capabilities. On the day the transaction was announced, EQT shares were down 4.6% in premarket trading, while Range Resources shares were up 10.1%. EQT shares were 4.73% below the previous close at $53.00 on October 26.