EQT has agreed to acquire Range Resources in an all-stock merger that would combine two major Appalachian natural-gas producers, with the companies putting the combined business’s enterprise value above $50 billion.
The companies announced the agreement Monday, October 26. Range shareholders would receive 0.987 EQT shares for each Range share they own. EQT shareholders are expected to hold about 73% of the combined company and Range shareholders about 27%.
The more-than-$50-billion figure describes the enterprise value of the combined company. It is not the price EQT is paying to buy Range. The announced consideration is stock, with the exchange ratio fixed in the merger agreement.
The proposed combination would bring together more than 9 billion cubic feet equivalent of daily net production, nearly 3 million net acres and more than 3,700 miles of midstream infrastructure, according to the companies. Cubic feet equivalent is a measure that puts natural gas and related energy production on a comparable basis.
The companies say the larger production base and infrastructure network would improve their ability to serve customers seeking long-term natural-gas supplies. Both operate in the Appalachian Basin. EQT’s business includes production and midstream operations, while Range produces natural gas and natural-gas liquids.
EQT and Range expect $325 million in annual savings and other operating benefits within two years. They identified corporate costs, operations and commodity marketing as areas for those benefits, and said further development and infrastructure changes could increase them over time. Those are company expectations, not savings already achieved.
The merger is not complete. Both boards unanimously approved the agreement, but shareholders of both companies must approve the transaction and required regulatory approvals and clearances must be obtained. The companies expect to close in the first quarter of 2027, subject to those and other customary conditions.
EQT’s executive management team would run the combined company, with headquarters remaining in Canonsburg, Pennsylvania. Two Range representatives, including its president and chief executive, Dennis Degner, would join EQT’s board at closing.
The announcement also changes the companies’ earnings-call schedule. EQT and Range canceled their separate third-quarter conference calls previously set for October 28. Both still plan to issue their third-quarter results after the market closes October 27.
JBizNews Desk | Canonsburg, Pennsylvania
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