EQT agreed to buy Range Resources in an all-stock deal creating a combined company with a pro forma enterprise value of more than $50B, including debt.
Range holders will receive 0.987 EQT shares for each Range share, with cash paid instead of fractional shares. The equity value works out to about $12.83B based on Range's 233.68M shares outstanding.
EQT shareholders will own roughly 73% of the combined group and Range investors 27% on a fully diluted basis. Both boards approved the agreement unanimously, and closing is targeted for the first quarter of 2027, subject to shareholder and regulatory approvals.
The companies describe the result as the largest vertically integrated natural gas producer in the US.
EQT and Range Resources merger key terms (as of Oct. 26, 2026)
| Deal term | Detail |
|---|---|
| Deal value | More than $50B pro forma enterprise value, including debt |
| Equity value | ~$12.83B |
| Structure | All-stock merger |
| Exchange ratio | 0.987 EQT shares per Range share |
| Ownership split | EQT 73%, Range 27% (fully diluted) |
| Annual cost savings | $325M within two years; more than $600M long term |
| Expected close | First quarter of 2027 |
Data center demand is the bet
The combined business would pump more than 9 billion cubic feet of natural gas equivalent a day, hold nearly 3M net acres in the Appalachian Basin, and own more than 3,700 miles of midstream pipe. It also carries more than 30 years of drilling inventory.
EQT says the deal pushes its unlevered free cash flow breakeven below $2 per million British thermal units and increases exposure to natural gas liquids. Cumulative free cash flow is projected at about $20B over five years at recent strip pricing.
Henry Hub spot gas sat at $3.10 per million British thermal units on Oct. 20, so the premium EQT is paying leans on future demand rather than today's price.
The math behind the savings
EQT targets $325M of annual savings within two years across corporate functions, operations, and commodities marketing, with longer-term synergies above $600M from development and infrastructure optimization.
Over the last four reported quarters, EQT booked $9.54B of revenue against Range's $3.44B, making the base synergy target roughly 2.5% of combined revenue.
EQT will expand its board to 12 members and add Range President and CEO Dennis Degner plus one other Range-selected director. The executive team stays EQT's, and headquarters remains in Canonsburg, Pennsylvania.
Termination fees are lopsided. Range would owe EQT $423M under specified circumstances, while EQT would owe Range $1.148B.
Either side can walk if the first merger hasn't closed by Oct. 25, 2027, a deadline that extends to April 25, 2028 only if stated conditions are met. Citi and RBC Capital Markets advised EQT, with Evercore leading for Range alongside J.P. Morgan Securities.
