RRC - EQT's Acquisition Of CNX Would Make It A Real Juggernaut

October, 27 2020 03:51 PM Range Resources Corporation

EQT produced ~4.1 Bcf/d and CNX is around ~1.5 Bcf/d. The acquisition would make EQT the largest natural gas producer by a mile.
EQT low-balled bid Chevron's assets, but given the valuation, it's unlikely Chevron approved the deal.
So rather than going for bolt-on acquisitions, EQT appears to be going for a real juggernaut play. By acquiring CNX, it will produce ~20% of Northeast gas production.
This will give EQT immense pricing power for the region.
In summary, if EQT can pull this deal off at today's low valuations, the stock's upside could be even higher than the $25 we are currently envisioning.

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Company Name:	Range Resources Corporation
Stock Symbol:	RRC
Market:	NYSE
Website:	rangeresources.com