EQT to Acquire Range Resources for $13 Billion, Creating Top US Gas Producer

EQT Corp. announced on Monday it will acquire rival Range Resources in an all-stock transaction valued at $13 billion. The deal will create the largest natural gas producer in the United States, underscoring a strategic race to consolidate ahead of anticipated demand growth from liquefied natural gas (LNG) exports and the power sector.

Strategic Rationale

The merger positions EQT, currently the second-largest U.S. natural gas producer, to become the dominant player in the market. The company aims to leverage the increased scale to secure supply contracts for what it sees as key growth areas.

"The Range transaction increases our market access to what we believe are the two premium markets in this world - domestically in Appalachia and on the international front with LNG," EQT CEO Toby Rice told Reuters. He said the combined entity would be "the natural choice for gas supply domestically and around the world."

Betting on a Demand Surge

The acquisition comes as top U.S. gas producers maneuver to capitalize on what they expect to be a significant increase in demand. This is despite a near-term supply glut that has depressed prices. Key drivers for the optimistic long-term outlook include:

• A new wave of LNG export terminals scheduled to come online.
• A buildout of gas-fired power plants to meet the electricity needs of data centers.

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Reflecting this outlook, EQT has increased its demand growth estimates for the Appalachian region to over 25 billion cubic feet per day (bcfd), up from a previous forecast of around 20 bcfd, according to Rice. The company is targeting 15% of its gas sales for exposure to international markets, where prices in Europe and Asia have recently traded over $30 per million British thermal units (mmBtu) compared to below $4 in the U.S.

Industry Consolidation Continues

This transaction is the latest in a series of major consolidations within the U.S. natural gas industry. It follows several other landmark deals aimed at building scale and improving capital discipline.

• October 2024: Chesapeake Energy merged with Southwestern Energy to create Expand Energy, the current top producer.
• May 2026: Devon Energy merged with Coterra Energy, creating the third-largest producer.

Analysts told Reuters they expect the trend to continue, particularly in the Marcellus and Utica shale basins. "There’s a number of logical ... combinations there that would likely occur over the next couple of years up in the Northeast," said Matthew Bernstein, a vice president at Rystad Energy. Analysts at Mizuho noted that concentrating assets in fewer hands "bodes well for capital discipline" as the industry prepares for the expected demand inflection.