The American EQT has signed a definitive merger agreement to acquire Range Resources through a fully stock transaction, with which a natural gas group will be formed with a 'pro forma' enterprise value exceeding 50 billion dollars (44.7 billion euros).
The two companies have indicated that the operation will result in the largest natural gas producer in the United States and the only one with vertical integration, with "great inventory depth" and a reduced cost structure. Furthermore, they highlight that it will have a "crisis-proof" balance sheet and the largest natural gas marketing platform in the country.
The boards of directors of both companies have unanimously approved an exchange of each ordinary share of Range for 0.987 ordinary shares of EQT. Thus, the current shareholders of EQT will control about 73% of the new company and those of Range the remaining 27%.
The closing of the operation is expected in the first quarter of 2027, subject to obtaining the relevant regulatory approvals, the approval of the shareholders of both companies, and the fulfillment of other usual requirements. After the merger is completed, two representatives from Range, including its president and CEO, Dennis Degner, will join the board of directors of EQT.
The resulting company will have a net production exceeding 9 billion cubic feet equivalent per day (Bcfe/d), more than 30 years of inventory spread across nearly three million net acres and over 3,700 miles of 'midstream' infrastructure.
The companies anticipate annual base synergies of 325 million dollars (290 million euros) within two years, coming from the corporate, operations, and commodity marketing areas.
For the long term, they estimate a potential exceeding 600 million dollars (536 million euros), supported by the optimization of development and infrastructure, better margins in natural gas marketing, and the possibility of accelerating the development of inventory to meet already contracted demand.