Updated: EQT and Range Resources Reach a Deal Worth Over $50 Billions, Joining Forces to Create a US Natural Gas Giant

The full text has been supplemented with details, and the content in the fourth paragraph has been updated.

Reuters, October 26 - EQT Corp (EQT.N) said on Monday it would acquire Range Resources (RRC.N) in an all-stock deal valuing the transaction (including debt) at over $50 billion, creating what the two companies are calling the largest vertically integrated natural gas producer in the United States.

According to calculations by Reuters based on London Stock Exchange Group (LSEG) data, Range Resources has 233.68 million outstanding shares. For each share held, Range Resources shareholders will receive 0.987 shares of EQT Corp stock, and the deal is valued at about $12.83 billion.

The implied offer price of $54.91 per share is about 20.6% higher than Range Resources' closing price last Friday.

In premarket trading, EQT shares fell 4.6%, while Range Resources shares rose 10.1%.

Rising natural gas demand from data centers (link) has improved the outlook of the U.S. natural gas market, prompting producers to pursue greater output, add deep drilling reserves, and strengthen marketing capabilities.

The merged 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. In addition, it will have over 30 years of drilling reserves and about 3,700 miles of midstream infrastructure.

EQT shareholders will own about 73% of the combined company, while Range investors will hold the remaining 27%. The transaction is expected to close in the first quarter of 2027 but is subject to regulatory and shareholder approval.

After the transaction is completed, two Range representatives (including CEO Dennis Degner) will join EQT's board of directors. The two companies stated that EQT’s executive team will lead the merged company, which will remain headquartered in Canonsburg, Pennsylvania.

EQT said the deal will lower its free cash flow breakeven point to below $2 per million British thermal units, and through improved corporate management, operational, and marketing efficiency, enable about $325 million in annual cost savings within two years.

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