EQT's acquisition of Range underscores race to dominate US natgas market
RRC•EQT agreed to buy Range Resources in a $13 billion all-stock deal that would make it the nation's biggest gas producer. CEO Toby Rice said EQT raised its Appalachian demand-growth estimate to more than 25 billion cubic feet per day and could increase LNG exposure while maintaining its 15% international-sales target.
1. Deal creates largest producer
EQT said it will buy Range Resources in a $13 billion all-stock deal, creating the nation's biggest gas producer and overtaking Expand Energy. EQT CEO Toby Rice said the acquisition increases the company's access to domestic Appalachian and international LNG markets.
2. Demand forecasts rise
Rice said EQT raised its estimate for Appalachian demand growth to more than 25 billion cubic feet per day, from about 20 billion previously. He said roughly half of the growth would stay in the basin, including to supply power plants, while the other half would require pipeline takeaway projects.
3. LNG exposure and consolidation
EQT has targeted 15% exposure of its gas sales to international markets. Rice said the larger production base could increase LNG capacity and exposure while maintaining that target, noting US gas was trading below $4 per million British thermal units compared with more than $30 in Europe and Asia. The deal follows other industry mergers as producers position for expected demand from LNG exports and power generation.
