US energy group EQT Corporation has agreed to acquire Range Resources Corporation in an all-stock deal that would create a North American natural gas giant worth more than $50bn. In a joint statement on Monday, the companies said the transaction would make the combined group the largest natural gas producer in the US.
Demand for gas-focused assets has surged in response to the Iran war, which has stymied liquefied gas exports from Qatar and Abu Dhabi, leaving Europe more reliant than ever on the US for its gas. Together, EQT and Range would be able to produce more than 9bn cubic feet of natural gas equivalent a day. The next largest shale gas producer in the US, Expand Energy, produces about 7.5bn cubic feet a day.
"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," said Toby Rice, president and chief executive at EQT.
The deal follows a wave of consolidation in US shale, which includes the February merger of Devon Energy and Coterra Energy, creating a $58bn drilling giant. The combined EQT and Range would own more than 3,700 miles of midstream infrastructure, including gas pipelines. Range shareholders will receive 0.987 EQT shares for each share held and will own about 27 per cent of the combined company. The deal is expected to close in the first quarter of 2027, subject to regulatory and shareholder approval.
Source: Financial Times Companies · Summarized by HeadlinesBriefing