EQT to buy Range Resources in $50 billion all-stock merger

EQT Corporation (NYSE: EQT) and Range Resources Corporation (NYSE: RRC) struck a definitive merger agreement on October 26, 2026, with EQT purchasing Range in an all-stock deal. The transaction forms a combined entity with a pro forma enterprise value exceeding $50 billion, establishing the largest vertically integrated natural gas producer in the United States.

Under the terms, each outstanding Range common share will be exchanged for 0.987 EQT common shares. Existing EQT shareholders are expected to retain approximately 73% of the combined company, while Range shareholders will hold about 27%. The deal is subject to regulatory approvals and shareholder votes from both firms, with closing expected during the first quarter of 2027.

The combination unites nearly 3 million net acres, yielding a combined net production capacity greater than 9 Bcfe/d and more than 30 years of inventory depth. The new entity will also control over 3,700 miles of midstream infrastructure. EQT stated that the merger is expected to improve its unlevered free cash flow breakeven to less than $2 per MMBtu, a non-GAAP measure defined as the average Henry Hub price needed to generate positive unlevered free cash flow.

EQT projects base annual synergies of $325 million within two years, with a potential pathway to over $600 million in long-term synergies from development and infrastructure optimization. The company expects cumulative free cash flow of approximately $20 billion over the next five years at recent strip pricing. The deal is expected to strengthen EQT’s balance sheet, providing BBB quality credit metrics at closing.

Toby Z. Rice, President and CEO of EQT, described the combined company as uniquely positioned for the next era of natural gas demand, citing its low-cost structure and long-duration asset base. Dennis L. Degner, President and CEO of Range, stated that the board unanimously determined the transaction would enhance shareholder participation in a constructive long-term natural gas outlook. Upon closing, Degner and one other representative from Range will join EQT’s Board of Directors. EQT’s executive management team will lead the combined company, which will remain headquartered in Canonsburg, Pennsylvania.

Citi and RBC Capital Markets acted as financial advisors to EQT, with Kirkland & Ellis LLP serving as legal counsel. Evercore acted as lead financial advisor to Range, joined by J.P. Morgan Securities LLC, while Gibson, Dunn & Crutcher LLP served as Range’s legal counsel. Both companies canceled their previously scheduled Q3 2026 earnings conference calls for October 28 but will issue Q3 results after market close on October 27.