EQT has announced plans to acquire Range Resources in a $13 billion all-stock deal, creating the largest natural gas producer in the United States. The transaction, which includes debt, values the combined company at over $50 billion. The move is driven by rising demand for natural gas from liquefied natural gas (LNG) exports and power generation, particularly from AI data centers.
The combined entity will have a net production of more than 9 billion cubic feet equivalent per day (bcfed), along with extensive drilling inventory and midstream infrastructure. EQT CEO Toby Rice noted that potential Appalachian gas demand could reach 25 bcfd, up from a previous estimate of 20 bcfd. The deal is expected to close in the first quarter of 2027.
Under the terms of the agreement, Range shareholders will receive 0.987 EQT shares per share held, valuing the deal at $12.83 billion, or $54.91 per share, a 20.6% premium to Friday’s closing price. EQT shares fell 3.7%, while Range Resources shares jumped 15.1% to $52.43. EQT shareholders will own about 73% of the combined company, with Range investors holding the remaining 27%.
The combined company is projected to generate about $20 billion in cumulative free cash flow over five years at recent market prices. Analyst Bert Donnes from William Blair said the deal strengthens EQT’s position as a leading supplier in growing gas and power markets. EQT’s management team will lead the combined company, with two Range representatives, including CEO Dennis Degner, joining EQT’s board.