EQT Corporation (NYSE:EQT) and Range Resources Corporation (NYSE:RRC) announced Monday that they have agreed to combine in an all-stock transaction, creating a natural gas behemoth with a pro forma enterprise value of more than $50 billion.

Investors reacted swiftly: EQT shares traded lower in Monday's premarket session, while Range Resources shares moved sharply higher.

The deal is designed to expand EQT's production scale, inventory depth, and midstream footprint, while targeting lower costs, higher free cash flow, and demand-led growth.

All-Stock Deal Details

Under the agreement, each outstanding Range share will convert into the right to receive 0.987 EQT shares. Upon completion, EQT shareholders will own approximately 73% of the combined company, and Range shareholders will own about 27%.

The companies expect to close the transaction in the first quarter of 2027, subject to regulatory and shareholder approvals and other customary closing conditions. The deal also requires clearance under the Hart-Scott-Rodino Act and approval to list the newly issued EQT shares on the New York Stock Exchange.

Scale and Synergies

The combined company will boast more than 9 Bcfe per day of net production, over 30 years of inventory across nearly 3 million net acres, and more than 3,700 miles of midstream infrastructure.

The transaction is expected to generate $325 million in annual synergies within two years, with potential to exceed $600 million over the longer term through development and infrastructure optimization, improved marketing margins, and demand-led growth.

EQT also expects the combination to lower its unlevered free cash flow breakeven to below $2 per MMBtu. At recent strip pricing, the combined company projects about $20 billion in cumulative free cash flow over the next five years.

"This transaction brings together two of the highest-quality, longest-duration asset bases in North America," said EQT President and CEO Toby Z. Rice, adding that it creates a company "uniquely positioned for the next era of natural gas."

Range President and CEO Dennis Degner said the combination creates opportunities "to build long-term value neither could fully realize independently."

Leadership and Governance

EQT's management team will lead the combined company, which will remain headquartered in Canonsburg, Pennsylvania. EQT will expand its board to 12 members and, after closing, appoint Degner and one additional Range-selected director.

The agreement includes termination protections: under specified circumstances, Range would pay EQT a $423 million termination fee, while EQT would pay Range $1.148 billion.

EQT and Range have canceled their previously scheduled third-quarter earnings calls on Oct. 28 but still plan to report third-quarter 2026 results after the market closes on Oct. 27.

Stock Price Activity: EQT shares were down 6.76% to $51.87, and RRC was up 11.88% to $50.93 in premarket trading on Monday, according to market data.