EQT pays Range Resources holders a 20.6% premium in an all-stock deal, and EQT stock falls 3.7%

EQT Corporation said Monday it will acquire Range Resources in an all-stock deal, according to a joint news release filed with the SEC, and reported by Reuters and Bloomberg. The companies put the combined enterprise value at more than $50 billion. At 10:50 AM ET, Range shares were up 15.4% at $52.53 and EQT was down 3.7% at $53.55, per Nasdaq.

The terms, and the number behind the headline

Each Range share converts into 0.987 EQT shares. Because no cash changes hands, the value of the offer moves with EQT's stock price. Using Friday's closes from Nasdaq:

So the premium quoted from Friday shrinks as EQT falls. Range trades about 0.6% below the implied value of the offer, a narrow gap that suggests the market is treating the deal as likely to close, though it still needs approval from regulators and both sets of shareholders. The companies expect to close in the first quarter of 2027.

EQT shareholders will own about 73% of the combined company and Range holders about 27%. EQT's stock sits 21.2% below its March 25 closing peak, so Range holders are taking shares of a company already well off its high.

What the companies say they are getting

The release lists more than 9 billion cubic feet equivalent per day of net production, more than 30 years of drilling inventory on nearly 3 million net acres, and over 3,700 miles of midstream pipeline. EQT expects $325 million of annual cost savings within two years and says the figure could pass $600 million over the long term. It also says the deal lowers EQT's break-even to less than $2 per MMBtu, the average Henry Hub price at which it generates positive unlevered free cash flow, a figure the companies define as non-GAAP.

For scale, natural gas was trading near $3.08 per MMBtu on our market data feed this morning, down about 1% on the day. A break-even under $2 means the company expects to stay cash-positive if prices fell by roughly a third. That is the company's own projection, not a verified result. The release also projects about $20 billion of cumulative free cash flow over five years at recent futures prices.

Who it touches

• Range and EQT shareholders: the first group gets a premium and a stake in a bigger company. The second takes on dilution and, on Monday, a lower share price.
• Large gas buyers in the Appalachian region: the release says the combined company is aimed at supplying end users with long-term contracts. A single larger counterparty can offer scale; it also means fewer sellers to negotiate with. We have not seen contract terms, so we cannot say how this affects prices.
• Owners with gas-heavy bills, such as bakeries, restaurants and small manufacturers: nothing in the filing changes the price of gas next month. The deal is a consolidation of producers, and the near-term price still depends on weather, storage and demand.

What to watch

Both companies report third-quarter results after the close on Tuesday, October 27, though they have canceled their earnings calls. Merger approval filings should show the regulatory timeline and what each board weighed. Whether EQT's stock recovers in the days ahead will show how the market rates the price it paid.

Sources: EQT 8-K and joint release on SEC EDGAR; Reuters and Bloomberg coverage of the announcement; Nasdaq quotes at 10:50 AM ET; Chronicle market data. Premium figures are Chronicle arithmetic and change with EQT's price. This is market information, not investment advice.