EQT to Acquire Range Resources in $50 Billion Appalachian Consolidation

Range shareholders will receive 0.987 EQT shares for every share held, valuing the firm’s equity at approximately $12.8 billion. Post-merger, EQT investors will hold a 73% stake in the entity, with the remaining 27% allocated to Range stakeholders. The combined operation targets an output exceeding 9 billion cubic feet equivalent per day, supported by over 3,700 miles of midstream pipeline infrastructure.

Management anticipates the deal will lower the company's unlevered free cash flow breakeven to under $2 per million British thermal units. By capturing $325 million in annual savings within two years—and eventually scaling to $600 million—the firm projects $20 billion in cumulative free cash flow over the next five years. This strategic pivot coincides with EIA forecasts projecting U.S. gas production to hit 115.9 billion cubic feet per day by 2027, driven by record LNG exports and power demand from domestic data centers. While the transaction awaits regulatory and shareholder approval for a 2027 close, market reaction was immediate: EQT shares slipped 4.2% in premarket trading, while Range shares surged 14.2%.