Swedish investment company EQT Corp. signed an agreement to acquire the shale oil and gas company Range Resources Corp. for $12.8 billion. This is reported in the EQT press release.
The deal aims to create the largest natural gas producer in the United States with a total value of $50 billion. The combined company will have 30 years of drilling reserves on an area of 3 million hectares and supply 7% of the total production in the United States as part of exports to domestic and foreign consumers.
The combined assets of the companies are located next to Data Center Alley in Northern Virginia, which has become a popular location for data centers. EQT has raised its forecast for gas demand growth from the Appalachia region to 25 billion cubic feet/day by the early 2030s.
The deal reflects EQT's interest in the vast shale gas fields in the Appalachia region with cheap production but no access to the sea in the states of Pennsylvania, West Virginia and Ohio. The field is located far from the coast of the Gulf of Mexico, where LNG export terminals to the United States are currently being built.
The transaction is expected to be completed in the first quarter of 2027, subject to shareholder and regulatory approval. Citigroup Inc. and RBC Capital Markets LLC act as EQT advisors, while Evercore Inc. and J.P. Morgan Securities LLC serve as advisors. Range.
Range Resources Corp. is an American oil and gas company with headquarters in Fort Worth, Texas.
EQT AB is a Swedish multinational investment company. EQT manages funds for EQT Private Capital, EQT Infrastructure, EQT Real Estate and growing companies in Europe, North America and the Asia-Pacific region. EQT manages assets worth 266 billion euros ($285 billion). The headquarters is located in Stockholm (Sweden).
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