EQT to Acquire Range Resources in All-Stock Deal Valued at Over $50 Billion

EQT Corp. on Monday announced a definitive agreement to acquire Range Resources in an all-stock transaction valued at more than $50 billion, including the assumption of debt. The deal will create what the companies described as the "largest vertically integrated natural gas producer" in the U.S., combining two major players in the Appalachian Basin.

Deal Structure and Valuation

Under the terms of the agreement, Range Resources shareholders will receive 0.987 shares of EQT Corp. for each share of Range they own. This exchange ratio implies an offer price of $54.91 per share, representing a 20.6% premium to Range Resources' closing price on Friday, according to a Reuters calculation.

• The equity portion of the deal is valued at approximately $12.83 billion, based on LSEG data.
• Upon completion, current EQT shareholders will own approximately 73% of the combined company, with Range Resources shareholders holding the remaining 27%.

In premarket trading following the announcement, shares of EQT were down 4.6%, while Range Resources shares rose 10.1%.

Strategic Rationale and Synergies

The merger is a response to the growing outlook for U.S. natural gas, partly driven by increasing demand from power-hungry data centers. The combination aims to create a more resilient and efficient producer with an extensive operational footprint.

Ad

The new entity will have a substantial asset base, including:

• Pro forma production of more than 9 billion cubic feet of natural gas equivalent per day.
• Nearly 3 million net acres in the Appalachian Basin.
• Over 30 years of high-quality drilling inventory.
• Approximately 3,700 miles of midstream pipeline infrastructure.

EQT said it expects the transaction to generate about $325 million in annual savings within two years through operational and corporate efficiencies. The company also projects the deal will lower its free cash flow breakeven point to below $2 per million British thermal units (MMBtu).

Leadership and Path to Closing

EQT's current executive management team will lead the combined company, which will maintain its headquarters in Canonsburg, Pennsylvania. Following the transaction's close, two representatives from Range, including CEO Dennis Degner, will be appointed to EQT’s board of directors.

The transaction is expected to close in the first quarter of 2027, pending customary closing conditions, including approvals from regulators and shareholders of both companies.