(WO) – EQT has agreed to acquire Range Resources in an all-stock transaction that will combine two of the largest natural gas producers in Appalachia. The combined company will have a pro forma enterprise value of more than $50 billion. It will produce more than 9 Bcfed net from nearly 3 million net acres, with more than 30 years of drilling inventory and more than 3,700 mi of midstream infrastructure.
Under the merger agreement, Range shareholders will receive 0.987 EQT shares for each Range share. EQT shareholders are expected to own about 73% of the combined company and Range shareholders about 27%. Both companies’ boards approved the deal unanimously. It is expected to close in the first quarter of 2027, subject to regulatory and shareholder approvals.
“This transaction brings together two of the highest-quality, longest-duration asset bases in North America and creates a company uniquely positioned for the next era of natural gas,” said EQT President and CEO Toby Rice.
EQT expects $325 million in annual synergies within two years from corporate, operations and commodities marketing. It sees a path to more than $600 million over the long term through development and infrastructure optimization and better margins from natural gas, LNG and NGL marketing. The company said the deal will lower its unlevered free cash flow breakeven to less than $2/MMBtu and add more exposure to NGLs. It projects about $20 billion of cumulative free cash flow over five years at recent strip prices.
“This combination of two highly successful operators with decades of inventory creates opportunities to build long-term value neither could fully realize independently,” said Range President and CEO Dennis Degner. Degner and one other Range representative will join EQT’s board. EQT’s management team will lead the combined company from its headquarters in Canonsburg, Pennsylvania.
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