Updated: 3-EQT to acquire Range Resources for $13 billion to create a top U.S. natural gas producer

The full article has been rewritten and updated.

Reuters, October 26 - EQT (EQT.N) announced on Monday that it will acquire Range Resources (RRC.N) through an all-stock deal worth $13 billion, aiming to create America’s largest natural gas producer and bet on the rising demand for liquefied natural gas (LNG) exports and power generation.

The deal merges two of the top natural gas producers in the Appalachian Basin, giving EQT a larger drilling reserve and improved infrastructure to serve utility companies, LNG exporters, and industrial customers.

Including debt, the merged company’s valuation will exceed $50 billion.

The merger comes at a time when U.S. natural gas demand is expected to hit a record high, mainly due to growth in LNG exports and increased power needs from artificial intelligence data centers. The U.S. Energy Information Administration forecasts domestic consumption to rise from 91.9 billion cubic feet per day (bcfd) in 2025 to 94.3 billion cubic feet per day in 2027.

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The merged company’s net daily production will exceed 9 billion cubic feet equivalent per day (bcfepd), with nearly 3 million net acres of land, over 30 years of drilling reserves, and more than 3,700 miles of midstream infrastructure.

For each share held, Range shareholders will receive 0.987 EQT shares. According to Reuters’ calculations, this gives the equity value of the deal at $12.83 billion, or $54.91 per share—a premium of about 20.6% over Range’s closing price last Friday.

EQT’s shares fell 3.3% in pre-market trading, while Range Resources shares rose 10.8% to $50.42.

Once the deal is completed, EQT shareholders will own about 73% of the merged company, and Range investors the remaining 27%. The transaction is expected to close in the first quarter of 2027.

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

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

The merged company will be led by EQT’s management team, with its headquarters remaining in Canonsburg, Pennsylvania.

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

(To assist non-native English speakers, Reuters has automated the translation of its report into several languages. Because automated translation may be inaccurate or lack necessary context, Reuters does not guarantee the accuracy of the automated translation. It is provided solely for reader convenience. Reuters is not responsible for any damage or loss caused by the use of the automated translation feature.)