Marcellus Market Moves: EQT Plans to Acquire Range Resources for $12.8 Billion

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Written by Paul Wiseman for IIR News Intelligence (Sugar Land, Texas)

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Summary

Combined company, with more than 9 Bcfe/d net production, more than 30 years of inventory and almost 3 million net acres and 3,700 miles of midstream, will be U.S. largest integrated natural gas company.

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Mega Gas Merger in the Marcellus Play

On Monday, Oct. 26, two of the largest natural gas producers in the U.S. announced a merger in which the larger, EQT, will acquire the smaller, Range Resources, in an all-stock $12.8 billion transaction. The companies, which both operate in the Marcellus Play, say this will create "America's leading natural gas company with a pro forma enterprise value over $50 billion."

Industrial Info Resources is tracking 95 plants and 24 projects for which EQT is the parent company, and three plants and 17 projects for which Range Resources is parent company.

Assets and Economies Galore

The newly combined company will own more than 9 billion cubic feet equivalent per day (Bcfe/d) of net production, more than 30 years of inventory, and almost three million net acres. Primarily through EQT, it will own more than 3,700 miles of midstream infrastructure, with more than 10 Bcf/d marketing capacity.

The combination will lead to economies of scale, such as improving EQT's unlevered free cash flow breakeven to less than $2 per MMBtu, the company says. As a point of reference, the U.S. Energy Information Administration's (EIA) average Henry Hub prices have been just over $3 per MMBtu, well above $2 this year, but there's a caveat: the EIA notes that Appalachian gas at the Algonquin Citygate has averaged a discount of 43 cents per MMcf compared to Henry Hub--still about 60 cents above EQT's stated breakeven for the new company.

EQT also says it expects $325 million of base annual synergies within two years across corporate operations and commodities marketing, with a pathway to more than $600 million long-term.

Source: EQT

Stock-only transaction

This is a 100% stock transaction valued at $12.8 billion in stock. Each outstanding share of Range common stock will be exchanged for 0.987 shares of EQT common stock. As a result of the transaction, EQT's existing shareholders are expected to own approximately 73% of the combined company and Range's shareholders are expected to own approximately 27%, according to the companies' press release.

The transaction is expected to close in Q1 2027, pending regulatory and stockholder approvals. It has already been approved by the board of directors of both companies.

Both have seen significant profit growth this year, per this May 20, 2026 Industrial Info Resources story, Three Large U.S. Gas Drillers Report Big Jump in Q1 Profits. Along with EQT and Range, Antero Resources Corporation was the third listed in the story. First quarter growth involved both domestic and international demand, and was greatly assisted by Winter Storm Fern, which boosted prices to an average of $7.72 per MMBtu for January.

Timing Is Everything

At a Monday morning press conference announcing the transaction, the question was asked about the decision's timing. The main catalyst listed by EQT CEO Toby Z. Rice was the emergence of the demand showing up in Appalachia. While he did not elaborate, power demand from data center growth, especially in Virginia, could be presumed to top that list.

He noted that the combination allows them to compete more aggressively for the opportunities. EQT's capacity is "north of 12 Bdf/d" and Range has said they could double their 2.5 Bcf/d output "and hold it flat for 15 years."

He continued, "Put those together and we have a production capacity of 17 Bcf a day, looking at an opportunity set that could be 20 Bcf a day."

On strategy, Rice and Dennis L. Degner, President and CEO of Range agreed that there would be little to no change. "It's really about supercharging the plan we already had, and accelerating that," Degner said.

Biggest but Not Alone

This has been a big year for M&A in Appalachia. Other activity in the last 12 months includes:

On December 8, 2025 Antero Resources acquired a large West Virginia Marcellus position from HG Energy II for $2.8 billion.

On September 16, of this year, Chord Energy announced it had agreed to sell its northeast Pennsylvania non-operated Marcellus position to POSCO International for gross considerations of $550 million.

There were a number of smaller transactions as well.

By the Numbers

9 Bcfe/d: Amount of natural gas production expected from combined company

$50 Billion: Pro forma enterprise value of the combined firm, making it U.S. largest natural gas producer

Key Takeaways

Demand growth for natural gas is boosting M&A activity as companies feel they must expand compete in the growing markets both domestically and globally. EQT and Range will be the largest U.S. natural gas producer, operating in the Appalachian region.

About IIR News Intelligence

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).