EQT to buy Range Resources in $13 billion deal to create top US gas producer
RRC•EQT agreed to buy Range Resources in an all-stock deal valued at $12.83 billion, or $54.91 per share, creating a company with more than $50 billion in enterprise value and output above 9 billion cubic feet equivalent per day. EQT expects about $20 billion in cumulative free cash flow over five years at recent market prices.
1. Deal terms and scale
EQT said it will buy Range Resources in a $13 billion all-stock deal, combining two Appalachian Basin producers. Range shareholders will receive 0.987 EQT shares for each share held, a 20.6% premium to Friday's close. EQT shareholders will own about 73% of the combined company, with Range investors holding the rest; the deal is expected to close in the first quarter of 2027.
2. Production and cash flow
The combined company is expected to produce more than 9 billion cubic feet equivalent per day, with nearly 3 million net acres, more than 30 years of drilling inventory and over 3,700 miles of midstream infrastructure. EQT expects about $20 billion in cumulative free cash flow over five years at recent market prices and an unlevered free cash flow breakeven below $2 per million British thermal units.
3. Demand outlook
EQT said potential Appalachian gas demand could rise to 25 billion cubic feet per day, up from its previous estimate of 20 billion, CEO Toby Rice said. Rice said production growth would be driven by customer demand and that mid-single-digit growth was achievable. EQT's management will lead the combined company, which will retain its headquarters in Canonsburg, Pennsylvania.
