EQT agrees to acquire Range Resources in all-stock natural gas deal

EQT agreed to acquire fellow natural gas producer Range Resources in an all-stock deal that would create a combined company with a pro forma enterprise value of more than $50 billion, the companies said Monday.

Range shareholders will receive 0.987 EQT share for each Range share they own, according to the merger agreement described in EQT's 8-K. After closing, EQT's existing shareholders would own about 73% of the combined company and Range's about 27%.

Both boards approved the agreement unanimously. The companies expect the deal to close in the first quarter of 2027, subject to regulatory approvals, votes by both sets of shareholders and other customary conditions.

What EQT says it is getting

The combined company would have more than 9 Bcfe a day of net production, more than 30 years of drilling inventory across nearly 3 million net acres, and more than 3,700 miles of midstream infrastructure, according to the joint release.

EQT expects $325 million of base annual synergies within two years, with a path to more than $600 million over the long term. It projects about $20 billion of cumulative free cash flow over the next five years at recent strip pricing, and says the deal should leave it with BBB-quality credit metrics at closing.

"This transaction brings together two of the highest-quality, longest-duration asset bases in North America," EQT President and CEO Toby Z. Rice said in the release.

Range CEO Dennis L. Degner said his board determined the deal "will enhance Range shareholders' ability to participate in a constructive long-term natural gas and NGL macro outlook."

Board seats and breakup fees

Degner and one other Range designee will join an expanded 12-member EQT board at closing. EQT's executive team will lead the combined company, which will stay headquartered in Canonsburg, Pennsylvania.

If the agreement is terminated in certain circumstances, Range would owe EQT a $423 million fee, while EQT would owe Range $1.148 billion, according to the 8-K.

Both companies canceled their Oct. 28 earnings calls but still plan to report third-quarter results after the market close on Oct. 27.

By the numbers

• 0.987: EQT shares per Range share
• 73% / 27%: pro forma ownership for EQT and Range holders
• More than $50 billion: pro forma enterprise value
• $325 million: base annual synergies targeted within two years
• First quarter of 2027: expected close

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

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