What EQT’s filings say about the Range Resources deal
Reports on 26 October describe EQT agreeing to acquire Range Resources in an all-stock transaction, with one headline putting the deal at $50 billion. A separate report links natural gas demand to AI data centres. Those are reported deal and demand claims; EQT’s FY2026 Q2 figures, the latest fiscal period in the data examined here, predate the announcement and cannot confirm the terms or strategic case.
What the historical figures show
For FY2026 Q2 TTM, EQT’s free cash flow grew 77.1% year over year, while net income grew 137.1%. That gap matters to a transaction framed around combining two gas businesses: earnings growth alone does not show how much cash the existing business generated. The filings-based figures show cash generation improved substantially, but earnings grew faster.
The cash-flow figures point to both stronger operations and significant investment. Operating cash flow grew 44.2% year over year, while capital expenditure grew 12.6%. Free cash flow, calculated as operating cash flow less capital expenditure, grew 77.1%. That suggests the increase in cash available after capital spending outpaced the increase in operating cash flow over the same TTM comparison.
Margins were also strong in the historical period. FY2026 Q2 TTM FCF margin was 39.4%, in the 97th percentile of EQT’s prior TTM observations. Operating margin was 42.5%, up 12.9 percentage points year over year. These figures describe EQT before the reported transaction. They do not tell us whether the acquired assets would lift or reduce the combined company’s margins.
| FY2026 Q2 TTM measure | Historical figure |
|---|---|
| Revenue growth, year over year | 32.3% |
| Change in revenue growth from prior quarter | −51.3 percentage points |
| Operating margin | 42.5% |
| Free cash flow growth, year over year | 77.1% |
| Net income growth, year over year | 137.1% |
| Capital expenditure growth, year over year | 12.6% |
Growth, financing and the limits of the filings
Revenue was still growing in FY2026 Q2 TTM, at 32.3% year over year, but the growth rate was down 51.3 percentage points from the prior quarter’s TTM rate. That deceleration is relevant context for a large acquisition: the existing business had expanding margins and rising cash flow, alongside a slower rate of revenue growth. Neither trend establishes what the deal will add.
It records diluted shares outstanding rising 5.9% year over year in FY2026 Q2 TTM. That is a historical share-count movement; the figures do not attribute it to a cause or include issuance terms for the announced transaction.
The available figures also do not quantify the transaction’s financing effects, pro forma debt, or the contribution expected from Range Resources. They contain no insider-activity measure that would support a conclusion about executives’ or directors’ trades. The SEC filings behind this analysis therefore offer a baseline for EQT’s pre-announcement cash generation, margins and share count, not an assessment of the combined company.
A reasonable alternative reading is that the cash-flow divergence is less concerning than the headline comparison implies. Free cash flow growth exceeded revenue growth, while capital expenditure grew more slowly than operating cash flow. That is consistent with improved cash conversion in the measured period. It still cannot show whether those conditions will persist or how much capital the transaction will require.
What it means for value
The model’s sensitivity analysis connects EQT’s historical FCF-margin improvement to value only if that improvement persists. On that assumption, the model implies a 32.6% value change. A 1 percentage point lower FCF margin corresponds to a -2.5% model-value change, while stage-one growth 5 percentage points lower corresponds to a -25.0% change. The model therefore shows material sensitivity to both margins and growth. The transaction’s effect on either input is not established by the historical figures here.
These are model values under stated assumptions, not a comparison with the share price.