EQT to Swallow Range Resources in $50B+ All-Stock Gas Deal
EQT is trading near its 52-week low of $47.937 (13% above the low).
Summary
EQT agreed to buy Range Resources in an all-stock deal at 0.987 EQT shares per Range share, creating a combined company with pro forma enterprise value above $50 billion. EQT holders keep about 73% of the combined company and Range holders about 27%. The combined business would produce more than 9 Bcfe per day across nearly 3 million net acres and 3,700-plus miles of midstream, with management targeting $325 million of annual synergies within two years and more than $600 million longer term. EQT also expects the deal to push its unlevered free cash flow breakeven below $2 per MMBtu and projects roughly $20 billion of cumulative free cash flow over five years at recent strip pricing. The market read it as EQT paying up: EQT fell 6.76% to $51.87 premarket while Range jumped 11.88% to $50.93. Break fees are asymmetric — Range pays $423 million, EQT pays $1.148 billion — and both companies scrapped their Oct. 28 earnings calls, though Q3 results still land after the close on Oct. 27. Closing is targeted for Q1 2027, pending HSR clearance and shareholder votes.
At the time of this announcement, EQT was trading at $53.99 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $33.8B. The 52-week trading range was $47.94 to $68.24. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Benzinga.