U.S. energy companies expect 2026 to be the second consecutive year of record natural gas production, driven by rising demand from liquefied natural gas (LNG) exports and fuel for data center operations. Three major producers—Expand Energy, EQT, and Range Resources—have indicated plans to maintain or decrease spending in 2026 while increasing output. The U.S. Energy Information Administration (EIA) forecasts that production will reach 112.2 billion cubic feet per day (bcfd) in 2026 and 116.1 bcfd in 2027.
On Monday, October 26, EQT announced a $13 billion all-stock acquisition of Range Resources. This transaction is intended to create the largest gas producer in the United States, with a combined net production of over 9 billion cubic feet of gas equivalent per day (bcfed). The companies expect the deal to close in the first quarter of 2027. This consolidation occurs as producers seek to capitalize on shifting demand patterns in the domestic and global energy markets.
Market analysts attribute the production growth to activity in the Permian Basin of New Mexico and Texas, as well as the Haynesville shale across Louisiana and Texas. Matthew Bernstein of Rystad Energy noted that natural gas production in the Permian is often associated with oil production, which is currently increasing. According to the EIA, supply disruptions resulting from the war in Iran have placed U.S. crude prices on a path toward four-year highs in 2026, incentivizing higher extraction volumes.
The scale of this shift is reflected in the financial commitments of the largest producers. Expand Energy, the current top producer, plans to invest between $2.75 billion and $2.95 billion to reach production of up to 7.6 bcfed in 2026. EQT, the second-largest producer, reduced its 2026 maintenance capital spending guidance by $25 million while raising its production target to as much as 6.7 bcfed. The U.S. relies on Canadian imports to supplement its own record production to meet combined domestic and export needs.
The expansion of data centers is cited as a significant driver for electricity generation, creating domestic natural gas consumption even as export capacity grows. Following the third-quarter earnings reports scheduled for Tuesday, October 27, the next major milestone is the expected completion of the EQT-Range Resources merger in the first quarter of 2027. Producers continue monitoring crude price fluctuations, which the EIA anticipates could hit four-year highs due to ongoing international conflict.