EQT agrees to buy Range Resources in an all-stock deal

What happened

EQT Corporation signed an agreement on Sunday 25 October to buy Range Resources in an all-stock deal, and the two gas producers announced it on Monday 26 October. ^{[1, 2, 3]}

Both companies filed the merger agreement and their joint release with the Securities and Exchange Commission on Monday 26 October. The release puts the combined company's pro forma enterprise value, the worth of its shares and debt together, at more than $50 billion. It would hold nearly 3 million net acres and more than 3,700 miles of pipelines and other midstream assets. ^{[1, 2, 3]}

Why it matters

The combined company would produce more than 9 billion cubic feet equivalent of gas a day, net, the companies said, and Bloomberg's headline and The Epoch Times called it the largest US natural gas producer. ^{[2, 7, 8]}

The companies expect $325 million a year in savings and other gains within two years. Range's gas liquids are about 30 percent of its output, Oil & Gas Journal reported, and Andrew Dittmar of Enverus wrote that they improve cash flow 'when gas struggles, as it has through 2026.' ^{[2, 5]}

How the deal works

Each Range share converts into a fixed number of EQT shares set in the agreement, with cash in place of fractions. EQT's current shareholders would own about 73 percent of the combined company and Range's about 27 percent. ^{[1, 2]}

Range's chief executive, Dennis Degner, and one other Range choice would join an EQT board enlarged to 12 members. EQT's management would lead the company from Canonsburg, Pennsylvania. ^{[1, 2]}

The release names no total for Range itself, and reports differ. WV MetroNews, the Pittsburgh Business Times and The Texas Lawbook reported $13 billion; The Epoch Times reported about $12.8 billion. ^{[2, 4, 6, 7, 9]}

If the deal fails in certain cases, Range would owe EQT a fee of $423 million and EQT would owe Range $1,148 million. The companies told the Business Times this was a standard structure based on their market values. ^{[1, 3, 4]}

What settles it next

The companies expect to close in the first quarter of 2027. Shareholders of both must vote, the antitrust waiting period under the Hart-Scott-Rodino Act must end, and EQT's registration of the new shares must take effect. ^{[1, 2]}

Either side may end the agreement if the deal has not closed by Monday 25 October 2027, a date that extends to Tuesday 25 April 2028 when only antitrust or court conditions remain. EQT chief executive Toby Rice told the Business Times on Tuesday 27 October that he did not believe there would be regulatory issues. ^{[1, 4]}

Who it reaches

EQT (EQT) is direct: it is the buyer and would issue the new shares. Range Resources (RRC) is direct: it would become a wholly owned EQT subsidiary, its shareholders holding about 27 percent of EQT. ^{[1, 3]}