October 27, 2026 — U.S. energy companies are on track to achieve a second consecutive annual record for natural gas production in 2026, driven by growing demand for liquefied natural gas (LNG) exports and electricity to power expanding data centers.
Three major producers — Expand Energy (EXE.O), EQT (EQT.N) and Range Resources (RRC.N) — were scheduled to report third-quarter earnings after the market closed on Tuesday. All three have indicated plans to maintain or reduce spending in 2026 compared with the previous year while increasing gas output, positioning themselves to benefit from rising demand.
The changing energy landscape is being shaped by expanding LNG export capacity and the growing electricity requirements of data centers.
U.S. Gas Production Expected to Reach New Highs
The U.S. Energy Information Administration (EIA) forecasts that average U.S. natural gas production will increase from a record 107.6 billion cubic feet per day (bcfd) in 2025 to 112.2 bcfd in 2026. Output is projected to reach 116.1 bcfd in 2027.
Much of the expected increase will come from the Permian Basin, which spans eastern New Mexico and West Texas, and the Haynesville region across northwest Louisiana and eastern Texas, according to Matthew Bernstein, vice president of North American oil and gas at Rystad Energy.
Bernstein said additional gas production in the Permian is linked to rising oil output. As U.S. producers extract more oil to meet global fuel demand, they also bring additional associated natural gas to the surface.
Supply disruptions related to the war in Iran have put U.S. spot crude prices on track to reach four-year highs in 2026, according to an earlier EIA outlook.
Demand Growth Driven by LNG Exports and Data Centers
U.S. natural gas demand is also expected to set a record. EIA data projects total demand will rise from 116.5 bcfd in 2025 to 120.0 bcfd in 2026.
A 17% increase in LNG exports is expected to be a major contributor to that growth. Meanwhile, the electricity needs of large data centers are adding another source of demand for natural gas.
Canadian imports help supply the additional gas needed to meet U.S. consumption and export requirements.
One billion cubic feet of natural gas is enough to supply approximately 5 million U.S. homes for a day.
EQT Announces $13 Billion Range Resources Acquisition
EQT, the nation’s second-largest natural gas producer, announced on Monday that it would acquire Range Resources in an all-stock transaction valued at $13 billion.
The deal is expected to create the largest natural gas producer in the United States. EQT and Range said the combined company would have more than 9 bcfd of net production, with the transaction expected to close during the first quarter of 2027.
The acquisition comes as producers seek to strengthen their position in a market where demand for natural gas is expanding.
Expand Energy Plans Record Output With Similar Spending
Expand Energy, currently the largest U.S. natural gas producer, is expected to report third-quarter net income of $304.3 million, according to LSEG estimates. That compares with adjusted net income of $234.0 million in the same quarter last year.
In its July second-quarter earnings report, Expand said it planned to invest between $2.75 billion and $2.95 billion in 2026. The company targeted production of approximately 7.4 billion to 7.6 billion cubic feet of gas equivalent per day (bcfed), compared with average output of 7.2 bcfed in 2025 on similar spending.
EQT Reduces Spending Guidance While Raising Production Targets
EQT is expected to report third-quarter net income of $255.4 million, down from adjusted net income of $328.6 million a year earlier, based on LSEG estimates.
Earlier this year, EQT reduced its 2026 maintenance capital spending guidance by $25 million, bringing its projected range to $2.04 billion to $2.19 billion. It also increased its annual production guidance by 0.25 bcfed to an average of 6.5 to 6.7 bcfed.
In 2025, EQT spent approximately $2.324 billion and produced an average of 6.5 bcfed.
Range Resources Expected to Report Higher Profit
Range Resources is forecast to post third-quarter net income of $188.4 million, according to LSEG estimates, compared with adjusted net income of $135.2 million in the same period last year.
Following the proposed acquisition, Range’s production would become part of EQT’s expanded operations, with the combined company expected to exceed 9 bcfed in net output.
The outlook for U.S. natural gas producers remains tied to their ability to increase production efficiently as LNG exports, data-center electricity consumption and global fuel demand continue to reshape the energy market.
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