EQT, the largest natural gas producer in the United States, has agreed to buy its Appalachian rival Range Resources in an all-stock deal. Range shareholders will receive 0.987 EQT shares for each share they hold, leaving them with about 27 per cent of the combined company. Range's shares rose about 16 per cent in New York on Monday.
The enlarged group would have net production of more than 9bn cubic feet equivalent a day, nearly 3m net acres and more than 30 years of drilling inventory. EQT expects $325m of annual savings within two years and more than $600m in the longer term, and about $20bn of free cash flow over five years at recent prices. Completion is expected in the first quarter of 2027, subject to regulatory and shareholder approval.
"This transaction brings together two of the highest-quality, longest-duration asset bases in North America," said Toby Rice, EQT's chief executive. Dennis Degner, Range's chief executive, said the combined company would be well placed to capitalise on "increasing demand for natural gas and liquids". He will join EQT's board.
