United States-based EQT Corporation has decided to acquire Range Resources in an all-stock deal valued at approximately USD 13 billion, combining two major American natural gas producers as demand for the fuel grows on the back of liquefied natural gas (LNG) exports and power generation.
The merger brings together two leading producers in the Appalachian Basin, giving the combined company a larger drilling inventory and expanded infrastructure to supply utilities, LNG exporters, and industrial customers.
Including debt, the combined company will be valued at more than USD 50 billion.
The deal comes as US natural gas consumption is expected to reach new records, driven by rising LNG exports and increasing electricity demand from artificial intelligence (AI) data centers.
As per the US Energy Information Administration forecasts, domestic natural gas consumption will rise from 91.9 billion cubic feet per day (bcfd) in 2025 to 94.3 bcfd in 2027.
The combined company will have net production exceeding nine billion cubic feet equivalent per day (BCFEP), alongside more than 30 years of drilling inventory across nearly three million net acres.
The entity will also control more than 3,700 miles of midstream infrastructure, strengthening its ability to transport natural gas to customers and key markets.
The offer represents a premium of approximately 20.6% to Range’s closing share price on Friday.
EQT shareholders will own approximately 73% of the combined company, with Range investors holding the remaining 27%.
The transaction is expected to close in the first quarter of 2027.
By combining their operations, EQT and Range Resources aim to expand production, improve infrastructure utilization, and strengthen their position in the Appalachian Basin.
The companies also expect the larger operating platform to support substantial cash generation.
“The combined business expects to generate approximately USD 20 billion in cumulative free cash flow over five years, based on recent market prices,” EQT Corporation and Range Resources said.
It also expects to reduce EQT’s unlevered free cash flow breakeven to below USD 2 per million British thermal units (MMBtu), potentially improving its ability to remain profitable during fluctuations in natural gas prices.
“EQT’s existing management team will lead the combined business, which will retain its headquarters in Canonsburg, Pennsylvania. Two representatives from Range Resources, including Chief Executive Dennis Degner, will join EQT’s board,” the companies announced.
The transaction gives EQT an opportunity to increase its scale and consolidate its position in one of the most important natural gas-producing regions in the United States.
For Range Resources shareholders, the all-stock transaction offers exposure to the enlarged company’s production base and potential cash generation.