Surging global demand drives increased production, US natural gas giants expect record high output this year

According to Zhesheng Finance APP, U.S. energy companies expect that 2026 will mark the second consecutive year of record-breaking natural gas production, driven by increasing global demand for liquefied natural gas (LNG) exports and fuel to power ultra-large-scale data centers.

The three largest natural gas producers in the United States—Expand Energy (EXE.US), EQT (EQT.US), and Range Resources (RRC.US)—released their third-quarter results on Tuesday. All three companies stated that expenditures in 2026 will remain roughly the same or lower compared to last year, while producing more natural gas from underground. This positions them advantageously to capture growing demand as new LNG export capacity and power needs from data centers reshape the U.S. energy landscape.

To maintain its dominant position in the U.S. natural gas market, EQT, the nation’s second-largest natural gas producer, announced on Monday that it will acquire Range Resources in an all-stock deal valued at $13 billion, thereby creating the largest natural gas producer in the U.S.

On an annual basis, the U.S. Energy Information Administration (EIA) stated that U.S. natural gas production is expected to rise from a record 107.6 billion cubic feet per day (bcfd) in 2025 to 112.2 bcfd in 2026, and reach 116.1 bcfd in 2027.

Matthew Bernstein, Vice President of North American Oil & Gas at energy research and consulting firm Rystad Energy, stated: "Most of this (incremental) growth comes from associated gas in the Permian Basin and from the Haynesville." The Permian Basin spans eastern New Mexico and West Texas, while the Haynesville stretches across northwest Louisiana and east Texas.

Bernstein noted that growth in natural gas output from the Permian—the nation’s largest oil shale basin—parallels the rise in crude oil production. According to an EIA outlook, with supply interruptions caused by the Iran war expected to push U.S. spot crude oil prices to a four-year high in 2026, U.S. energy enterprises are ramping up crude oil (and natural gas) production to help supply fuel to the world.

Meanwhile, according to EIA data, total U.S. natural gas demand will rise from a record 116.5 billion cubic feet per day in 2025 to 120 billion cubic feet per day in 2026, mainly driven by a 17% surge in LNG exports. Imports from Canada provide additional natural gas needed to meet U.S. domestic demand and exports. One billion cubic feet of natural gas is enough to supply about 5 million U.S. households for one day.

Record Production Ahead

According to LSEG estimates, Expand Energy, currently the largest natural gas producer in the U.S., reported an adjusted net profit of $338 million for the third quarter, exceeding expectations and higher than last year’s $234 million in adjusted net profit for the same period.

For the full year, Expand stated in its second-quarter report released in July that it plans to invest about $2.75 billion to $2.95 billion in 2026 to produce about 7.4 to 7.6 billion cubic feet equivalent per day (bcfed) of natural gas; in comparison, with similar expenditure levels in 2025, the company’s average production is 7.2 bcfed.

Earlier this year, EQT stated that it had reduced its 2026 maintenance capital expenditure guidance by $25 million, to a range of $2.04 billion to $2.19 billion, and raised its full-year production guidance by 0.25 bcfed to an average of 6.5 to 6.7 bcfed. In contrast, the company’s 2025 expenditure is about $2.324 billion with average production at 6.5 bcfed.

EQT and Range stated that the combined company’s net production will exceed 9 bcfed. Both companies expect the transaction to be completed in the first quarter of 2027.