EQT to Buy Range Resources, Creating Largest US Natural Gas Producer

EQT Corp. has agreed to acquire rival Appalachian shale driller Range Resources Corp. in an all-stock transaction that would create the largest natural-gas producer in the United States.The two companies announced on Oct. 26 that their boards had unanimously approved the merger, which values the deal at about $12.8 billion.The combined company would produce more than 9 billion cubic feet equivalent of natural gas and liquids per day. It would have an enterprise value of more than $50 billion, including debt.The transaction is expected to close in the first quarter of 2027, subject to shareholder and regulatory reviews and other customary conditions.EQT’s existing management team will lead the combined company, which will remain headquartered in Canonsburg, Pennsylvania. Two Range representatives, including CEO Dennis Degner, will join EQT’s board.Expanding in the AppalachiaThe merger brings together two major operators in the Appalachian Basin, home to the Marcellus and Utica shale formations.The U.S. Geological Survey estimates that the two formations contain a combined mean of about 214 trillion cubic feet of undiscovered, technically recoverable natural gas resources.Range was a pioneer in opening the Marcellus shale formation to large-scale development. The company drilled what it describes as the first commercially successful modern Marcellus well in Pennsylvania in 2004. It now produces more than 2 billion cubic feet equivalent per day, largely from southwestern Pennsylvania.For EQT, the deal follows its 2024 acquisition of Equitrans Midstream, which expanded its control over pipelines and other infrastructure used to transport natural gas from the Appalachian region.The combined company would control nearly 3 million net acres, have more than 30 years of drilling inventory, and operate more than 3,700 miles of pipelines and other midstream infrastructure, EQT said on Oct. 26.In a call with analysts on Oct. 26, EQT CEO Toby Rice said adding Range to the fold would further lower costs and improve its ability to move gas to utilities, industrial customers, and exporters of liquefied natural gas (LNG).“This transaction comes at a pivotal moment for America’s economy, as a convergence of modern industry and energy ushers in a new era of growth,” Rice said. “Nowhere is this transformation more evident than in Appalachia.”Betting on Rising Gas DemandThe acquisition comes as U.S. natural-gas producers prepare for growing demand from LNG exports, electricity generation, and power-hungry data centers.U.S. LNG exports are expected to average 17.6 billion cubic feet per day in 2026 and rise to 18.6 billion cubic feet per day in 2027, according to the U.S. Energy Information Administration. That compares with 15.1 billion cubic feet per day in 2025.At the same time, the electric power sector continues to use massive volumes of natural gas, with summer consumption expected to reach a record 46.1 billion cubic feet per day in 2027, up from about 43.7 billion cubic feet per day in 2026.“We forecast demand in the commercial sector to grow nationally because of the addition of new data centers and large manufacturing facilities—particularly in Texas … and Virginia,” the Energy Information Administration said. “These facilities require large amounts of electricity for both operation and cooling.”Degner said in a statement that the company combined from EQT and Range “will be uniquely positioned to capitalize on increasing demand for natural gas and liquids both domestically and internationally, delivering superior returns for investors.”