EQT, Range Resources Plan $50B+ Gas Merger

EQT Corp. said it will buy Range Resources in a stock transaction worth more than $50 billion, including debt. The merger of the two companies will create what it describes as the largest vertically integrated natural gas producer in the US.

Shareholders of Range Resources will receive 0.987 EQT shares for every share held. The offer values the company at about $12.83 billion, or $54.91 per share which represents a 20.6% premium over its Friday closing share price.

Following the announcement EQT shares fell 4.6% in pre-market trading whilst Range Resource rose 10.1% in shares. The deal comes as the demand for natural gas continues to increase as data centres require more power to operate. This growing demand is encouraging energy companies to increase production, expand drilling activities and improve their ability to sell gas.

Once combined, the companies will produce more than 9 billion cubic feet of natural gas equivalent per day. They will also control nearly 3 million net acres in the Appalachian Basin and have more than 30 years of drilling inventory. The combined business will own around 3,700 miles of midstream infrastructure.

EQT shareholders will own about 73% of the new company, while Range Resources shareholders will hold the remaining 27%. The deal is expected to close in the first quarter of 2027, pending regulatory and shareholder approvals. Range Resources CEO Dennis Degner and another company representative will join EQT’s board after the deal is completed.

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EQT expects the merger to save around $325 million annually within two years through improvements in operations, marketing and corporate costs. It also expects to lower its natural gas production cost break-even point to below $2 per million British thermal units.