EQT Range Resources Deal: EQT Buys Range in $12.8 Billion Stock Swap

EQT Corporation has agreed to acquire Range Resources in an all-stock transaction valued at about $12.8 billion, bringing together two major producers in the Appalachian natural gas basin.

The EQT Range Resources deal, announced on Monday, 26 October, gives the combined company a pro forma enterprise value of more than $50 billion, the companies said in a joint statement.

Under the terms, Range shareholders will receive 0.987 EQT shares for each Range share they own. EQT shareholders are expected to hold about 73% of the enlarged company and Range shareholders about 27%.

The $12.8 billion equity value and a premium of nearly 21% for Range shareholders were reported by Fortune. The companies’ statement did not specify either figure.

Inside the EQT Range Resources deal: scale and synergies

The combined business will produce more than 9 billion cubic feet equivalent per day (Bcfe/d) of net output from nearly 3 million net acres, according to the announcement filed with the US Securities and Exchange Commission. It will hold more than 30 years of inventory and more than 3,700 miles of midstream infrastructure.

EQT expects $325 million in base annual synergies within two years, with a path to more than $600 million over the long term. The companies estimate about $20 billion of cumulative free cash flow over five years at recent strip prices.

The combined company’s unlevered free cash flow breakeven is expected to be below $2 per MMBtu at Henry Hub prices. EQT also expects to have BBB-quality credit metrics when the deal closes.

Headquarters will remain in Canonsburg, Pennsylvania, and EQT’s executive team will lead the combined company. Two Range representatives, including Range President and CEO Dennis Degner, will join the EQT board at closing.

EQT President and CEO Toby Rice said the deal combines “two of the highest-quality, longest-duration asset bases in North America”. Degner said Range had been happy to take a “go-it-alone approach”, but described EQT as the “leading combination”, partly because of a “compelling premium”, according to Fortune.

Why the merger matters for gas markets and India

The merger comes as US gas demand is expected to rise with new liquefied natural gas (LNG) export terminals under construction along the Gulf Coast and with electricity needs from AI data centres, Fortune reported. The war involving Iran, which began in late February, has also strained gas supplies across Europe and Asia, according to the report.

Analysts quoted by Fortune were largely positive. Andrew Dittmar of Enverus called the enlarged EQT an “Appalachian juggernaut”, while Patrick Harris of Infralogic questioned what would happen if expected data-centre demand fell sharply.

Kevin MacCurdy of Pickering Energy Partners said the deal makes EQT “a must own for investors wanting natural gas exposure”. Brett Donnes of William Blair described the combination as a “long-term, low-cost behemoth” for gas and power.

Range’s shares had gained 23% over the previous 12 months, Fortune noted, well behind many oil companies over the same period. Because the deal is paid entirely in EQT stock, Range investors will stay exposed to gas prices through the combined company.

For Indian business leaders, the deal is relevant because India is a major LNG importer and buys cargoes from the US among other suppliers. A larger, lower-cost Appalachian producer could strengthen the US supply base behind LNG exports over time, although neither company has announced any India-specific plans.

What happens next

The EQT Range Resources deal is expected to close in the first quarter of 2027. It requires regulatory approvals and clearances, approval from the shareholders of both EQT and Range, and other customary closing conditions.

Both companies will release third-quarter 2026 results after the market closes on 27 October. They have cancelled earnings calls that had been scheduled for 28 October, the statement said.

Citi and RBC Capital Markets are financial advisers to EQT, with Kirkland & Ellis as legal counsel. Evercore is the lead financial adviser to Range, with J.P. Morgan Securities also advising and Gibson, Dunn & Crutcher as legal counsel. For more on large US corporate deals, see our latest business news.