BY Richard Summerfield
EQT Corporation has agreed to acquire rival Appalachian Basin producer Range Resources in a strategic, all-stock merger valued at $13bn. The combined company will have an enterprise value of $50bn, creating what EQT describes as the US’s largest and only vertically integrated natural gas producer.
Under the terms of the deal, which has been unanimously approved by the board of directors of both companies, EQT will acquire Range in an all-stock transaction. Each outstanding share of Range common stock will be exchanged for 0.987 shares of EQT common stock. As a result of the transaction, EQT’s existing shareholders are expected to own approximately 73 percent of the combined company and Range’s shareholders are expected to own approximately 27 percent.
The deal is expected to close during the first quarter of 2027, subject to the receipt of required regulatory approvals and clearances, approval of the transaction by shareholders of both EQT and Range, and the satisfaction of other customary closing conditions.
Upon the closing of the transaction, two representatives from Range, including Dennis Degner, president and chief executive of Range, will join EQT’s board of directors. EQT's executive management team will lead the combined company with headquarters remaining in Canonsburg, Pennsylvania.
Combined, EQT and Range will be able to produce more than 9 billion cubic feet of natural gas equivalent per day, the companies said. The next largest shale gas producer in the US is Expand Energy, which produces about 7.5 billion cubic feet a day.
“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 Toby Z. Rice, president and chief executive of EQT. “As the lowest-cost natural gas producer in the industry, supported by multiple decades of high-quality inventory, the combined company will offer exceptional resilience through commodity cycles while maintaining significant upside to strengthening natural gas fundamentals.
“Additionally, our expanded resource base solidifies EQT as the operator of choice for premium, long-term supply arrangements and provides unique growth optionality underpinned by contractual demand. We believe this combination creates a must-own energy company capable of generating durable, through-cycle free cash flow while compounding value for shareholders for decades to come,” he added.
“This combination of two highly successful operators with decades of inventory creates opportunities to build long-term value neither could fully realize independently,” said Mr Degner. “Our Board of Directors unanimously determined that this transaction will enhance Range shareholders' ability to participate in a constructive long-term natural gas and NGL macro outlook. The combined company will be uniquely positioned to capitalize on increasing demand for natural gas and liquids both domestically and internationally, delivering superior returns for investors.”
Deal: EQT to buy Range Resources in $13 billion deal to create top US gas producer