Surging global demand boosts production US gas giants expect record production this year
The Zhitong Finance App learned that US energy companies expect 2026 to be the second consecutive year of record natural gas production — global demand for liquefied natural gas (LNG) exports and fuel to power large-scale data centers continues to grow.
The three largest US gas producers — Expand Energy (EXE.US), EQT (EQT.US), and Range Resources (RRC.US) — announced their third-quarter results on Tuesday. All three companies have indicated that spending in 2026 will be roughly the same as or lower than last year, while producing more natural gas from underground, thus taking on a favorable position to handle the increase in demand as new LNG export capacity and data center electricity demand reshape the US energy landscape.
To maintain its dominant position in the US gas market, EQT, the nation's second-largest gas producer, announced on Monday that it will acquire Range Resources in a $13 billion all-share deal to create the nation's largest natural gas producer.
On an annual basis, the US Energy Information Administration (EIA) said that US gas production is expected to rise from a record 107.6 billion cubic feet/day (bcfd) in 2025 to 112.2 billion cubic feet/day in 2026, and reach 116.1 billion cubic feet/day in 2027.
Matthew Bernstein, vice president of the North American oil and gas business at energy research and consulting agency Rystad Energy, said, “Most (incremental) of this (incremental) comes from associated gas in the Permian Basin, as well as Hinesville.” The Permian Basin spans eastern New Mexico and West Texas, while Hinesville spans northwestern Louisiana and eastern Texas.
Bernstein said that during the Permian period — the nation's largest oil-producing shale basin — the increase in natural gas production was accompanied by an increase in crude oil production. According to an EIA forecast, U.S. crude oil spot prices are expected to hit a four-year high in 2026 due to supply disruptions due to the Iran war, and US energy companies are extracting more crude oil (and natural gas) to help supply fuel to the world.
Meanwhile, according to EIA data, total US gas demand will rise from a record 1165 billion cubic feet/day in 2025 to 120 billion cubic feet/day in 2026, mainly driven by a 17% surge in LNG exports. Imports from Canada provide additional natural gas needed to meet US demand and exports. One billion cubic feet of natural gas is enough for about 5 million American households a day.
Record production is coming
According to LSEG estimates, the adjusted net profit for the third quarter of Expand Energy, currently the largest gas producer in the US, was US$338 million, higher than expectations, and higher than the adjusted net profit of US$234 million for the same period last year.
For the full year, Expand said in its second-quarter results report released in July that it plans to invest approximately $2.75 billion to $2.95 billion to produce about 7.4 billion to 7.6 billion cubic feet of gas (bcfed) in 2026; in comparison, the company's average output in 2025 at similar spending levels was 7.2 billion cubic feet equivalent per day.
EQT said earlier this year that it had lowered the 2026 maintenance capital expenditure guidance by $25 million to the $2.09 billion range; and raised the full-year production guidance by 0.25 bcfed to an average of 6.5 to 6.7 bcfed. By comparison, the company spent approximately $2,324 million in 2025, with an average output of 6.5 bcfed.
EQT and Range said the combined company's net output will exceed 9 billion cubic feet equivalent per day. The two companies expect the deal to close in the first quarter of 2027.