AI powers up $13 bln natural gas deal
RRC•EQT agreed to acquire Range Resources in an all-stock deal valued at nearly $13 billion, creating the largest US natural gas producer. EQT estimates $325 million in annual cost savings and says Appalachian gas demand could rise by 25 billion cubic feet over the next decade.
1. Deal and projected savings
EQT agreed to acquire Range Resources in an all-stock deal valued at nearly $13 billion, creating the largest US natural gas producer. EQT estimates the merger will generate $325 million in annual cost savings. Range investors will receive 0.987 EQT shares for each share held, a 21% premium to Range’s October 23 closing price; EQT investors will own 73% of the combined company.
2. Demand and deal rationale
EQT expects Appalachian natural gas demand to increase by 25 billion cubic feet over the next decade, largely because of data centers. The region produced nearly a third of US natural gas in 2025 but used only a portion, while limited pipeline capacity has contributed to a persistent discount. EQT also sees more than $300 million in potential strategic upside, including selling Range gas for overseas LNG exports.
3. Investor response
EQT shares fell 4% on Monday morning after the deal was announced. The combined company is expected to produce 9 billion cubic feet equivalent of natural gas per day and have more than 30 years of inventory.
