Pull to refresh
Logo
EQT to acquire Range Resources, creating largest US natural gas producer

EQT to acquire Range Resources, creating largest US natural gas producer

Money Moves

All-stock merger valued at more than $50 billion, closing expected in first quarter of 2027

Today: EQT announces acquisition of Range Resources

Overview

Updated 1 hour ago

EQT Corporation announced Monday it will acquire Range Resources in an all-stock deal worth about $12.9 billion in equity, creating what the companies call America's largest vertically integrated natural gas producer. Range shareholders receive 0.987 EQT shares for each share they hold — an implied $54.91, about 20.6% above Range's last close.

The combined company carries pro forma enterprise value above $50 billion, produces over 9 billion cubic feet of gas equivalent per day across nearly 3 million net acres in the Appalachian Basin, and holds more than 30 years of drilling inventory. EQT says the merger cuts its free cash flow breakeven below $2 per million Btu and targets $325 million in annual savings within two years, with a path to over $600 million long-term. EQT shareholders will own about 73% of the combined entity; Range holders get about 27%.

Why it matters

If this merger closes, one company controls the largest share of US gas supply as data centers push demand to records.

Questions about this story

Free account needed to ask — your question is kept and asked for you right after sign-up. Answers are public.

No questions yet — be the first to ask.

Key Indicators

$12.9B
Equity value of deal
Reuters calculation based on 233.68 million Range shares at $54.91 each.
$50B+
Pro forma enterprise value
Combined company's enterprise value exceeds $50 billion, including debt.
20.6%
Premium over Range's last close
Implied offer price of $54.91 per share versus Friday's closing price.
9 Bcfe/d
Combined daily net production
Over 9 billion cubic feet of natural gas equivalent per day.
$325M
Base annual synergies
Expected within two years, with a path to over $600 million long-term.

Voices

Curated perspectives — historical figures and your fellow readers.

Ever wondered what historical figures would say about today's headlines?

Sign up to generate historical perspectives on this story.

People Involved

Organizations Involved

Timeline

1980 October 2026

3 events Latest: Today
  1. EQT announces acquisition of Range Resources

    Today Merger

    EQT agrees to buy Range in an all-stock deal creating the largest US natural gas producer.

  2. Range reports year-end production

    Disclosure

    Range produces 2.24 Bcfe per day from 1,579 wells, with 18.1 Tcfe of proved reserves.

  3. Range Resources incorporated

    Founding

    The natural gas producer that EQT would later acquire is founded as a Delaware corporation.

Scenarios

1

EQT-Range merger clears approvals and closes

Likely Resolves by Q1 2027

Discussed by: Reuters; EQT and Range management

Both companies' boards approved the deal unanimously, and the 20.6% premium gives Range shareholders reason to support it. If the Federal Trade Commission raises no antitrust objections and shareholders approve, the merger closes in the first quarter of 2027 as the companies project. EQT's executive team takes over combined operations from Canonsburg.

2

Regulators impose conditions or block the deal

Unlikely Resolves by Q1 2027

Discussed by: Precedent from ExxonMobil-Pioneer and the FTC's review of large shale mergers

The Federal Trade Commission could scrutinize EQT's market share in Appalachian gas or its control of midstream infrastructure. Drawing on the Exxon-Pioneer template, regulators might clear the deal only on condition — for example, barring a Range executive from EQT's board or requiring divestitures. A full block is unlikely given the transparency of the all-stock structure.

3

Shareholders reject the merger

Unlikely Resolves by Q1 2027

Discussed by: EQT holders weighing dilution against the deal's projected synergies

Range shareholders receive a 20.6% premium, giving them little reason to vote no. EQT shareholders face more dilution risk: the all-stock structure shifts roughly 27% of the combined company to Range holders. If EQT investors balk at the price or management's projections, either shareholder vote could fail, killing the deal before regulators weigh in.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

October 2023 – May 2024

ExxonMobil–Pioneer Natural Resources (2023)

ExxonMobil agreed in October 2023 to buy Pioneer Natural Resources for about $60 billion in an all-stock deal, the largest in a wave of US shale consolidation. The merger made Exxon the dominant operator in the Permian Basin of west Texas and New Mexico.

Then

The Federal Trade Commission cleared the deal in May 2024 on condition that Pioneer's founder, Scott Sheffield, not join Exxon's board. The merger closed the same month.

Now

The deal set a template for mega shale mergers: all-stock structure, antitrust review, and a close within about seven months once conditions were met.

Why this matters now

Gives EQT and Range a clear blueprint for regulatory review and closing — and shows conditions can be attached even when a deal clears.

January 2024 – October 2024

Chesapeake–Southwestern merger (2024)

Chesapeake Energy and Southwestern Energy agreed to merge in January 2024, creating what was then the largest US natural gas producer, with operations spanning the Marcellus and Haynesville shales. The all-stock deal was valued at about $7.4 billion.

Then

The combined company, later renamed Expand Energy, closed the deal in October 2024.

Now

It demonstrated that gas-focused consolidation can clear regulatory review, and set the scale benchmark EQT's deal now surpasses by roughly seven times.

Why this matters now

Shows the consolidation pattern EQT is following, and the speed at which such mergers can close when both sides cooperate.

Sources

(5)