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EQT is buying Range Resources in an all-stock deal Reuters values at $12.8 billion

Range holders get 0.987 EQT shares for each Range share. The "over $50 billion" figure is the combined company's enterprise value, debt included, not the price.

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Why it matters: It would combine EQT and Range Resources, with Range holders owning about 27% of the combined company if the deal closes in Q1 2027.

For information only, not investment advice. Prices delayed.

Tickers: EQT, RRC

Who would own the combined EQT
Sainteur chart · Data: EQT and Range Resources joint release

EQT ($EQT) agreed to buy Range Resources ($RRC) in an all-stock deal the companies say creates America's largest and only vertically integrated natural gas producer. Range holders get 0.987 EQT shares for each share they own, and the deal is expected to close in the first quarter of 2027, pending regulatory approvals and votes at both companies, according to their joint release.

Now, the price tag. By a Reuters calculation, the exchange ratio values Range at $12.83 billion, or $54.91 a share, a 20.6% premium to Friday's close. The "over $50 billion" in the release is something else: the combined company's pro forma enterprise value, which counts debt. EQT holders would own about 73% of the combined company and Range holders about 27%.

Range shares were up 15.88% at $52.75, and EQT was down 3.36% at $53.76, as of Oct. 26, 11:45 AM ET.

The companies project $325 million of annual synergies within two years and about $20 billion of cumulative free cash flow over five years at recent strip prices. Those are forecasts, not results.

Reuters framed the deal around rising gas demand from LNG exports and AI data centers. It reported that CEO Toby Rice said on a conference call that EQT now sees potential Appalachian gas demand reaching 25 billion cubic feet a day, up from its earlier estimate of 20.

The number in the fine print: if the deal falls apart under certain circumstances, Range would owe EQT a $423 million termination fee, while EQT would owe Range $1,148 million, according to EQT's 8-K filing.

Sources

  1. EQT and Range Resources joint news release (SEC Exhibit 99.1), EQT Corporation and Range Resources Corporation
  2. EQT Corporation Form 8-K, EQT Corporation
  3. EQT to buy Range Resources in $13 billion deal to create top US gas producer, Reuters (via Investing.com)

Tags: mergers-acquisitions · energy · markets-moves