0.987 EQT Shares for Each Range Share in Acquisition Deal
Key Facts
EQT agreed to acquire Range Resources in an all-stock deal, under which each eligible Range share will receive 0.987 EQT shares, according to Range’s filing with the U.S. Securities and Exchange Commission. Range shareholders will own about 27% of the combined company after the deal closes, compared with about 73% for EQT shareholders. Reuters valued the deal at about $12.83 billion, or $54.91 per share, a 20.6% premium to the previous Friday’s close. Those figures are calculations of the implied value in the stock swap, not fixed cash consideration; the value changes with EQT’s share price. The exchange ratio and expected ownership define the consideration structure and allocation of stakes at closing.
The new company’s assets extend beyond the swap to a broader production base and infrastructure footprint in Appalachia. Based on estimates from the two companies cited by Reuters, net production will exceed 9 billion cubic feet equivalent per day after the deal closes. The company will also have more than 30 years of drilling inventory and about 3 million net acres. Its asset base also includes more than 3,700 miles of transportation and processing infrastructure. These figures put the scale of the expected assets at the center of the deal, alongside the stake Range shareholders will receive.
The companies are targeting $325 million in annual base savings within two years, according to Range’s announcement, with a potential path to exceed $600 million over the long term. The announcement did not specify a more distant timeline for those longer-term savings in the information available here. Reuters projected that the combined company would generate about $20 billion in cumulative free cash flow over five years, at recent market prices. These estimates link the expected return from combining the companies to cost reductions and cash flows over a defined period. The savings and cash-flow figures remain targets or projections in the deal announcement and Reuters coverage.
The announcement came amid expectations for rising U.S. gas consumption. The Energy Information Administration said domestic consumption is forecast to increase from 91.9 billion cubic feet per day in 2025 to 94.3 billion in 2027, according to Reuters. In its October outlook, the agency forecast total consumption rising from 91.9 billion cubic feet per day in 2025 to 93.8 billion in 2027. The agency also said gas consumption in 2025 rose 2%, or 1.7 billion cubic feet per day, from 2024. These estimates place the deal in the context of a market where consumption is expected to grow, but they were not cited by the companies as a stated rationale for the agreement.
EQT Chief Executive Toby Rice offered a separate estimate of potential demand in Appalachia, saying the company had raised its estimate to 25 billion cubic feet per day from 20 billion previously. Reuters reported the remarks from a conference call about the deal. The new estimate directly compares with EQT’s previous estimate of potential demand in the region. In trading, a Reuters update published on Oct. 26 at 11:18 a.m. Eastern time showed Range shares up 15.1% at $52.43, while EQT shares fell 3.7%. EL7 data showed Range’s close at $45.52 on Oct. 23.
The deal is expected to close in the first quarter of 2027, subject to regulatory approvals, approval by both companies’ shareholders and customary closing conditions, according to Range’s announcement. The expected ownership allocation will take effect only after the deal closes. In the nearer term, the companies announced that they would release third-quarter results after the market close on Oct. 27, 2026. The companies canceled their third-quarter results calls, which had been scheduled for Oct. 28, according to Range’s filing. This timeline puts the results date ahead of the expected deal close the following year.