EQT-Range Resources Deal Valued at $12.83 Billion at 20.6% Premium
Key Facts
EQT and Range Resources announced a merger agreement on October 26, 2026, valuing the deal at about $12.83 billion, or $54.91 per share, according to Reuters calculations. The offer value represents a 20.6% premium to Range’s closing price on the Friday before the announcement. The agreement is based on a stock swap, with Range shareholders receiving 0.987 EQT shares for each eligible share they own, with cash paid in lieu of fractional shares. As a result, the value received by Range shareholders is tied to EQT’s share price, rather than a fixed cash offer. The announcement comes as interest grows in meeting rising U.S. demand for natural gas.
According to Range’s filing with the U.S. Securities and Exchange Commission, EQT’s current shareholders are expected to own about 73% of the combined company after the merger, compared with about 27% for Range shareholders, on a fully diluted basis. This allocation gives Range shareholders a stake in the larger entity rather than an exit from the investment for cash. Reuters’ estimate of $54.91 per share compares with Friday’s close before the announcement, while the 0.987 ratio reflects the number of EQT shares due for each eligible Range share. The deal therefore combines a stated premium for Range shareholders with a redistribution of ownership between the two shareholder bases. These expected stakes remain subject to completion of the agreement’s conditions.
The market reaction was mixed on October 26: EQT shares fell 3.7%, while Range shares jumped 15.1% to $52.43, according to Reuters. EL7 data recorded Range’s close at $53.56 that day, compared with a close of $45.52 on October 23. The two closing prices differ because they come from different sources; Reuters’ reported percentage change appeared in its account of trading on the announcement day. The close recorded by EL7 put the share price above Friday’s pre-announcement close, while Reuters’ coverage showed a sharp rise in Range shares and a decline in the acquirer’s shares. The divergence reflected the market’s response to the deal terms on both sides of the merger on the announcement day.
The deal is underpinned by expectations for growth in U.S. gas use, driven by rising liquefied natural gas exports and power generation needs, including demand linked to AI data centers, according to Reuters. The U.S. Energy Information Administration expects domestic consumption to rise from 91.9 billion cubic feet per day in 2025 to 94.3 billion in 2027. EQT’s chief executive also said the company had raised its estimate of potential gas demand in Appalachia to 25 billion cubic feet per day, from a previous estimate of 20 billion. These estimates link the companies’ resources in the region to a broader market that includes power utilities, LNG exporters and industrial customers. Expected demand provides a strategic backdrop for the merger, alongside the opportunity to combine the companies’ assets under a unified ownership structure.
The agreement does not take effect upon announcement; it requires approval from both companies’ shareholders, approval to list EQT shares on the New York Stock Exchange, the expiration or termination of waiting periods under U.S. antitrust law, and other conditions. The companies are targeting completion of the deal in 2027, according to the announcement carried by Reuters. Until the approvals are secured, the expected ownership stakes and stock-swap terms remain part of an agreement awaiting completion of its procedures. EQT is scheduled to report third-quarter results after the market closes on October 27, according to a correction to the announcement timing in public sources. No official public confirmation was found for the earnings and earnings-per-share figures in the initial draft, so those figures are not attributed to the company’s results.