EQT will become the largest natural gas producer in the United States by agreeing to acquire Range Resources in a wholly stock-based transaction. The combined company is estimated to be worth over $50 billion and will produce more than 9 billion cubic feet equivalent of natural gas per day. With nearly 3 million acres of land, this merger gives EQT and Range significant capabilities to continue their operations.
Deal Details and Share Structure
Under the merger agreement, Range shareholders will receive 0.987 shares of EQT for each of their shares. It is expected that EQT shareholders will own about 73 percent of the combined company, while Range shareholders will hold approximately 27 percent. The boards of directors of both companies have unanimously approved this agreement, and the deal is expected to close in the first quarter of 2027, subject to regulatory and shareholder approvals.
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The Future of Natural Gas and Financial Synergies
Toby Rice, President and CEO of EQT, stated: "This deal brings together two high-quality, long-lived asset portfolios in North America and uniquely positions the new company for the future era of natural gas." EQT expects to achieve $325 million in annual synergies over the next two years through corporate optimizations, operations, and commodity marketing. Additionally, the company anticipates reaching over $600 million in synergies through infrastructure optimization and improved margins in natural gas, LNG, and NGL marketing. It is estimated that this deal will reduce the free cash flow break-even rate to less than $2 per million BTU while also paying more attention to NGLs.
Overall, EQT expects to generate approximately $20 billion in cumulative free cash flow over the next five years.
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