Key insights
- EQT and Range Resources announced an all-stock merger valued at over $50 billion in pro forma enterprise value, with EQT shareholders owning approximately 73% and Range shareholders 27%. The deal, targeted for Q1 2027, involves a fixed exchange ratio of 0.987 EQT shares for each Range share, representing a significant premium for Range shareholders. EQT is acquiring Range primarily for its liquids production, which will increase the combined entity's liquids output to 12.5%. The companies project substantial synergies and free cash flow, though some figures are difficult to
EQT and Range Resources announced an all-stock merger this morning: 0.987 EQT shares for each Range share, about 73/27 ownership, "over $50 billion" of pro forma enterprise value, closing targeted for Q1 2027. I read the release, both 8-Ks and the merger agreement. Here is what the headline leaves out.
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No premium is stated anywhere. Not in the release, not in either 8-K. At the October 23 closes (EQT $55.63, RRC $45.52), the ratio is worth $54.91 per Range share, a 20.6% premium. Against the October 16 closes it is 24.0%, because Range rose 5.3% in the week before signing, including 3.8% on October 23 alone. The ratio is fixed with no collar, so that value moves with EQT.
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The 27% checks out. On the agreement's own share counts (233,659,190 Range, 625,549,428 EQT), Range holders get 26.9% of about 856 million pro forma shares.
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So does the $50 billion. 856.2 million shares at $55.63 is $47.6 billion of equity. Add about $6.5 billion of combined net debt at June 30 and you get about $54 billion, before EQT's noncontrolling interests.
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What EQT is really buying is liquids. Only 5.9% of EQT's Q2 output was liquids; about a third of Range's is. Combined, liquids go to 12.5% of output, and 64% of them come from Range. Range's NGLs averaged about 37% of the oil price in 2025. That is the one strategic claim you can measure in the filings today.
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Breakup fees: $423 million from Range, $1,148 million from EQT. Lopsided in dollars, but Range's is 3.3% of what the ratio pays for Range, and EQT's is 3.3% of EQT's own market value.
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Claimed, not shown: $325 million of synergies within two years (path to $600 million+), an unlevered free cash flow breakeven under $2/MMBtu, about $20 billion of free cash flow over five years at strip. All projections, and the release says the free cash flow figures can't be reconciled to GAAP without unreasonable effort.
Both companies report Q3 after the close tomorrow, October 27, which will replace the June 30 balance-sheet figures.
Is 20.6% fair for Range in an all-stock deal, or light?
Disclosure: long EQT, no position in RRC. Not investment advice.