EQT Corporation has announced a $13-billion all-stock acquisition of Range Resources, creating the largest natural gas producer in the United States. The deal, valued at $12.83 billion or $54.91 per share, represents a 20.6% premium over Range's closing price on Friday. EQT shareholders will own about 73% of the combined company, with Range investors holding the remaining 27%. The transaction is expected to close in the first quarter of 2027.
The merger combines two major Appalachian Basin producers, providing greater scale and infrastructure to serve utilities, LNG exporters, and industrial customers. The combined company will have an enterprise value of over $50 billion, including debt, and net production of more than 9 billion cubic feet equivalent per day. It will also boast over 30 years of drilling inventory across nearly 3 million net acres and more than 3,700 miles of midstream infrastructure.
EQT CEO Toby Rice highlighted the growing demand for natural gas, driven by LNG exports and power generation from AI data centers. The Energy Information Administration forecasts U.S. natural gas consumption to rise from 91.9 billion cubic feet per day in 2025 to 94.3 billion cubic feet per day in 2027. EQT now expects potential Appalachian gas demand to reach 25 billion cubic feet per day, up from its previous estimate of 20 billion cubic feet per day.
The combined company anticipates generating about $20 billion in cumulative free cash flow over five years at recent market prices. The deal is also expected to lower EQT’s unlevered free cash flow break-even to below $2 per million British thermal units, helping it remain profitable through swings in natural gas prices. EQT’s management team will lead the combined company, which will retain its headquarters in Canonsburg, Pennsylvania.