EQT Corporation and Range Resources Corporation today announced a definitive merger agreement under which EQT will acquire Range in an all-stock transaction, creating America’s leading natural gas company with a pro forma enterprise value of more than $50 billion.
The combination brings together two of North America’s highest-quality natural gas assets, creating America’s largest and only vertically integrated natural gas producer with leading inventory depth and a low-cost structure.
EQT President and CEO Toby Z. Rice told investors Monday, “This transaction brings together two of the highest-quality, longest-duration asset bases in North America and creates a company uniquely positioned for the next era of natural gas. As the lowest-cost natural gas producer in the industry, supported by multiple decades of high-quality inventory, the combined company will offer exceptional resilience through commodity cycles while maintaining significant upside to strengthening natural gas fundamentals. Additionally, our expanded resource base solidifies EQT as the operator of choice for premium, long-term supply arrangements and provides unique growth optionality underpinned by contractual demand. We believe this combination creates a must-own energy company capable of generating durable, through-cycle free cash flow while compounding value for shareholders for decades to come.”
Dennis L. Degner, President and CEO of Range, said, “This combination of two highly successful operators with decades of inventory creates opportunities to build long-term value neither could fully realize independently. Our Board of Directors unanimously determined that this transaction will enhance Range shareholders’ ability to participate in a constructive long-term natural gas and NGL macro outlook. The combined company will be uniquely positioned to capitalize on increasing demand for natural gas and liquids both domestically and internationally, delivering superior returns for investors. I want to thank our employees, whose hard work, dedication and commitment have positioned us to enter this next chapter of value creation with EQT.”
The combined company will produce more than 9 billion cubic feet of natural gas equivalent per day and control nearly 3 million net acres in the Appalachian Basin. It will also own more than 30 years of drilling inventory and approximately 3,700 miles of midstream infrastructure.
EQT shares were down 4.6% in premarket trading Monday, while Range Resources were up 10.1% following the announcement.
By CEO NA Editorial Staff
