Gas: EQT swallows Range Resources in billion-dollar takeover
The merger of the two natural gas producers is valued at over $50 billion and is expected to be completed by 2027.
Quick Look
- US natural gas producer EQT Corp is taking over rival Range Resources in a share swap.
- The deal is worth over $50 billion and is expected to create the largest vertically integrated natural gas producer in the United States.
AI-generated summary
Why It Matters
Rising energy demand from data centers is driving demand for natural gas in the US.
Frankfurt. A new gas giant is emerging in the USA: The natural gas producer EQT Corp is taking over its rival Range Resources via a share swap. Including debt, the deal is valued at more than $50 billion. This will create the country's largest and only vertically integrated natural gas producer, the companies announced on Monday.
Range Resources shareholders will receive 0.987 EQT shares for each of their shares. This corresponds to a price of $54.91 per share and a premium of 20.6 percent to Friday's closing price. According to LSEG data, the pure share value of the acquisition is around $12.8 billion.
The plan was received differently on the stock exchange: EQT shares fell by 4.6 percent in pre-market trading, while Range Resources shares rose by 10.1 percent.
The rapid expansion of data centers is increasing demand for natural gas. This improves the outlook for the US gas market and encourages producers to expand their production volumes and strengthen marketing. The new company will produce more than 250 million cubic meters of natural gas equivalent per day in the future.
He also controls an area of around 1.2 million hectares in the Appalachian Basin in the eastern United States, has drilling reserves for more than 30 years and a pipeline network that is almost 6,000 kilometers long.
After the deal is completed, which is expected in the first quarter of 2027, the existing EQT shareholders will hold around 73 percent of the new industry giant. The remaining 27 percent goes to Range investors. The current EQT management will manage the joint company; the headquarters will remain in Canonsburg in the US state of Pennsylvania. Two representatives from Range, including CEO Dennis Degner, are to join EQT's board of directors. EQT expects the merger to generate annual savings of around $325 million within two years. Regulators and shareholders still need to approve the takeover.
What to Watch
AI outlook — possibilities, not facts
The acquisition will be completed in the first quarter of 2027
Likely · Within months
Open Questions
- Do the supervisory authorities approve the takeover?
- How do shareholders react to the vote?
