In an attempt to capitalize on growing demand from LNG exports and power generation, EQT announced on Monday that it will purchase Range Resources in a $13 billion all-stock transaction to become the biggest natural gas producer in the United States.
With the merger of two significant Appalachian Basin producers, EQT will have more infrastructure and scale to serve utilities, LNG exporters, and industrial clients.
The combined business will be worth more than $50 billion, including debt.
Due to the demand for power from AI data centers and LNG exports, US natural gas consumption is predicted to reach all-time highs.
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According to the Energy Information Administration, domestic demand is expected to increase from 91.9 billion cubic feet per day (bcfd) in 2025 to 94.3 bcfd in 2027.
CEO Toby Rice stated during a conference call that EQT now anticipates potential Appalachian gas demand increasing to 25 bcfd from its earlier estimate of 20 bcfd.
Once combined, the company would produce over 9 billion cubic feet of gas equivalent daily, hold more than three decades of drilling inventory on close to 3 million net acres, and operate over 3,700 miles of midstream infrastructure.
That puts it well ahead of competitor Expand Energy, which pumped roughly 7.2 bcfed in 2025 and is guiding to 7.4-7.6 bcfed this year.
Under the terms, Range holders get 0.987 EQT shares for each share they own.
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This values the transaction at $12.83 billion, or $54.91 a share, a 20.6% premium to Friday’s close. In trading, EQT slipped 2.3% while Range jumped 16.7% to $53.14.
This also resolves the $13 billion question from earlier: the figure in your headline rounds a $12.83 billion calculation, so it’s an independent estimate rather than a number the companies announced.
Post-merger, EQT’s existing shareholders will hold roughly 73% of the new company, and Range’s investors will hold the other 27%, with closing targeted for the first quarter of 2027.
The combined business is projected to generate around $20 billion in free cash flow over the next five years, based on recent market prices.
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The transaction is also expected to push EQT’s unlevered free cash flow breakeven under $2 per MMBtu, which should help it stay profitable even when gas prices swing.
Rice said any future production growth would follow customer demand instead of volume targets, though he indicated that mid-single-digit growth was within reach.
EQT’s existing management will run the merged company, and it will stay headquartered in Canonsburg, Pennsylvania. Range CEO Dennis Degner and one other Range representative will be added to EQT’s board.
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