EQT plans to acquire Range Resources for over $50 billion — OilPrice
In the United States, EQT Corp. plans to acquire natural gas producer Range Resources in a stock-for-stock deal with a total value exceeding $50 billion, including debt. OilPrice reports. Following the merger, the company will produce more than 9 billion cubic feet of gas equivalent per day in the Appalachian Basin and, according to EQT and Range, will become the largest vertically integrated natural gas producer in the United States.
Terms of the stock exchange
Range Resources shareholders will receive 0.987 EQT shares for each of their shares. This implies a valuation of $54.91 per Range share and a 20.6% premium to Friday's closing price. Range's equity value is about $12.8 billion.
Following the completion of the deal, EQT shareholders will own approximately 73% of the combined company, while Range Resources investors will own the remaining 27%. The transaction is expected to close in the first quarter of 2027, subject to shareholder and regulatory approvals.
More current news is available on the UA.News Telegram channel Telegram.
Assets and expected effect
The combined company will have nearly 3 million net acres in the Appalachian Basin, more than 30 years of drilling inventory, and over 3,700 miles of midstream pipelines. EQT said the deal would allow it to lower its debt-adjusted free cash flow breakeven to less than $2 per million British thermal units.
The company also expects to achieve $325 million in annual savings within two years after the merger and more than $600 million over the longer term. EQT and Range forecast about $20 billion in combined free cash flow over the next five years at current forward prices.
The U.S. Energy Information Administration forecasts that the country's gas production will increase from 107.6 billion cubic feet per day in 2025 to 111.7 billion in 2026 and 115.9 billion in 2027. Liquefied natural gas exports, according to this forecast, will reach a record 17.4 billion cubic feet per day in 2026.
