Updated: 5-EQT to Acquire Range Resources for $13 Billion, Creating a Leading U.S. Natural Gas Producer

Updated the share price data in paragraph 11 and added analyst comments in paragraph 14.

Sumit Saha

Reuters, October 26 - EQT Corporation (EQT.N) announced on Monday that it will acquire Range Resources (RRC.N) in an all-stock deal valued at $13 billion, creating the largest natural gas producer in the United States. This move aims to bet on the growing demand in liquefied natural gas (LNG) exports and power generation sectors.

This transaction merges two major producers in the Appalachian Basin, giving EQT greater scale and infrastructure to better serve utility companies, LNG exporters, and industrial clients.

After factoring in debt, the merged company's enterprise value will exceed $50 billion.

Driven by LNG exports and the surging power demand from artificial intelligence data centers, U.S. natural gas consumption is expected to hit a record high.

The U.S. Energy Information Administration forecasts that domestic natural gas consumption will rise from 91.9 billion cubic feet per day (bcfd) in 2025 to 94.3 billion cubic feet per day in 2027.

EQT CEO Toby Rice said on a conference call that the company now expects potential natural gas demand in the Appalachian region to rise to 25 bcfd, up from the previous expectation of 20 bcfd.

The merged company will have a daily net production exceeding 9 bcfed, nearly 3 million net acres of land, more than 30 years of drillable reserves, and over 3,700 miles of midstream infrastructure.

Rival Expand Energy EXE.O has an estimated daily production of about 7.2 bcfed for 2025, with projections of 7.4-7.6 bcfed for 2026.

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According to Reuters’ calculations, Range Resources shareholders will receive 0.987 shares of EQT stock for each share they hold. The deal is valued at $12.83 billion, or $54.91 per share—a 20.6% premium over Friday's closing price.

EQT shares fell 3.7%, while Range Resources surged 15.1% to $52.43.

In the merged company, EQT shareholders will own approximately 73% of the shares, with Range investors holding the remaining 27%. The transaction is expected to close in the first quarter of 2027.

Based on recent market prices, the merged company is expected to generate about $20 billion in cumulative free cash flow over five years.

William Blair analyst Bert Donnes commented that this transaction cements EQT’s position as a leading supplier in the growing natural gas and power markets and allows the company to benefit when natural gas prices eventually rebound.

The deal is also expected to lower EQT’s unlevered free cash flow breakeven to below $2 per million British thermal units (MMBtu), helping it remain profitable amid gas price fluctuations.

Toby Rice said future production growth will be driven by customer demand rather than production targets, adding that achieving mid-single-digit growth is feasible.

The EQT management team will lead the combined company, which will remain headquartered in Canonsburg, Pennsylvania.

Two Range representatives, including CEO Dennis Degner, will join EQT’s board of directors.

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