EQT and Range Resources Are Merging: Is It Time to Buy the New U.S. Natural Gas Titan?

EQT, a leading natural gas producer, is merging with Range Resources to form the largest natural gas company in the U.S., with a combined enterprise value surpassing $50 billion. The merger, valued at around $13 billion, will see EQT acquire Range Resources. The combined company is expected to produce over 9 Bcfe/d, with 88% being natural gas, and boast an industry-leading unleveraged cash flow breakeven of under $2 per MMBTu.

EQT and Range have strong balance sheets and are located near each other in the Marcellus and Utica shale regions, giving the merged company a significant production advantage and nearly 30 years of drilling inventory at natural gas prices of $3 per Mcf. The deal is expected to save both companies $325 million and $300 million in annual corporate and operational costs, respectively.

With natural gas demand booming due to factors such as AI infrastructure, population growth, and the shift away from coal-fired plants, the merger could significantly benefit shareholders.