EQT to buy Range Resources in $13 billion deal to create top US gas producer

Key Points:

• EQT and Range Resources are merging to create a major Appalachian Basin natural gas producer with an enterprise value exceeding $50 billion, enhancing scale and infrastructure to serve utilities, LNG exporters, and industrial customers.
• The combined company will have net production of over 9 billion cubic feet equivalent per day, with more than 30 years of drilling inventory across nearly 3 million net acres and extensive midstream infrastructure.
• Range shareholders will receive 0.987 EQT shares per share, valuing the deal at $12.83 billion, a 20.6% premium, with EQT shareholders owning 73% and Range investors 27% of the combined company; the transaction is expected to close in Q1 2027.
• The merger is projected to generate about $20 billion in cumulative free cash flow over five years and lower EQT's free cash flow breakeven to below $2 per MMBtu, supporting profitability amid natural gas price fluctuations.
• EQT's CEO Toby Rice emphasized that future production growth will be driven by customer demand, with mid-single-digit growth achievable, while EQT's management will lead the combined company headquartered in Canonsburg, Pennsylvania.