EQT's Range Resources Buyout Draws Questions From Scotiabank — Firm Asks Why Pay For RRC's Assets In Current Commodity Price Environment

What happened

EQT Corp's proposed all-stock acquisition of Range Resources would create a combined company where EQT owns 73%, and the deal is not yet final. Scotiabank lowered its EQT price target to $53 from $54 and kept a Sector Perform rating.

Proposed

Global impact / market context

Much of the deal's value depends on higher long-term natural gas demand, so weakness in current prices raises questions about whether EQT is overpaying for Range Resources' assets. An all-stock structure means EQT shareholders bear the risk of the proposed combination.

Analyst inference

U.S. natural gas prices are under pressure from rising production and forecasts of warmer weather. December 2026 futures were down about 1% near $3 per million British thermal units, and the ProShares Ultra Bloomberg Natural Gas ETF fell 3.3% on Tuesday, tracking a fifth straight monthly loss.

Analyst inference

What to watch

1. Scotiabank maintained a Sector Perform rating on EQT and lowered its price target to $53 from $54, which represents about 4.5% downside from current levels. Confirmed
2. Watch whether natural gas prices recover, since Scotiabank said much of the deal's value depends on higher long-term regional gas demand, which means expected future gas consumption. Analyst inference
3. Watch the timing and size of power demand from data centers, which Scotiabank flagged as a risk to the demand assumptions underlying the proposed acquisition. Analyst inference

Evidence

• stocktwits.com