$EQT · EQT Corp
EQT Corporation filed an 8-K disclosing a definitive merger agreement to acquire Range Resources in an all-stock transaction. Range shareholders will receive 0.987 EQT shares per Range share, giving EQT existing holders ~73% and Range holders ~27% of the combined company. The deal creates a pro forma enterprise value exceeding $50 billion with >9 Bcfe/d of net production, targeting $325 million in base annual synergies and a pathway to $600+ million long-term. Closing is expected in Q1 2027, subject to regulatory approvals and shareholder votes from both companies.
- All-stock deal: each Range share converts to 0.987 EQT shares, implying ~27% ownership for Range holders in the combined company.
- Pro forma enterprise value exceeds $50 billion with combined production of >9 Bcfe/d across nearly 3 million net acres.
- EQT targets $325 million in base annual synergies within two years, with a pathway to more than $600 million long-term.
- Unlevered free cash flow breakeven projected below $2/MMBtu; cumulative FCF of ~$20 billion expected over five years at strip pricing.
- Two Range directors, including CEO Dennis Degner, will join EQT's expanded 12-member board at closing.
Extended-hours trading shows EQT down 3.11% to $53.90 vs the regular-session close of $55.63, suggesting initial investor skepticism about the all-stock dilution or integration risk. The $34.80B market-cap acquirer is absorbing a sizable target in a deal that will shift ownership 73/27.
This is the largest U.S. natural gas pure-play consolidation, creating the undisputed lowest-cost producer with a sub-$2/MMBtu breakeven and ~$20B projected five-year cumulative free cash flow.
Continues the Appalachian natural gas consolidation wave, following recent E&P mega-deals. The combined entity becomes the largest U.S. natural gas producer with vertical integration across upstream, midstream, and marketing — positioning for LNG export-linked demand growth.
Integration risk from combining two large Appalachian operators; regulatory approval and dual shareholder votes required; potential synergy shortfall vs. the $325M–$600M+ target; commodity price exposure could pressure the projected ~$20B cumulative FCF.