EQT Corp. agreed Monday to acquire Range Resources in an all-stock transaction, creating what the companies called America's largest and only vertically integrated natural gas producer, with a pro forma enterprise value above $50 billion.
Deal terms
- Exchange ratio: Each Range share will be exchanged for 0.987 EQT shares, according to the companies' announcement. Bloomberg Law put the deal's value at about $12.8 billion.
- Ownership: EQT shareholders are expected to own about 73% of the combined company and Range shareholders about 27%.
- Scale: The merged company will produce more than 9 billion cubic feet equivalent per day in Appalachia, with over 30 years of drilling inventory across nearly 3 million net acres, and EQT expects $325 million in annual savings within two years, Bloomberg Law reported.
- Timing: Closing is expected in the first quarter of 2027, pending regulatory and shareholder approvals.
"This transaction brings together two of the highest-quality, longest-duration asset bases in North America," EQT CEO Toby Rice said. Range CEO Dennis Degner, who will join EQT's board along with one other Range representative, said the deal "creates opportunities to build long-term value neither could fully realize independently."
The combined company will stay headquartered in Canonsburg, Pennsylvania. Both companies will still release third-quarter results after the market close on Oct. 27.