Gas driller EQT pushing into LNG with two huge tankers, exec tells Bloomberg

U.S. natural gas production is set to hit new records in 2026 and 2027, driven by rising domestic and global demand. The EIA forecasts output to reach 116.13 bcfd in 2027, with Henry Hub prices averaging $3.16/MMBtu. EQT Corporation and Range Resources announced a merger, creating a leading natural gas company with a $50B enterprise value. EQT raised its 2026 production and sales guidance, while Range reported increased output.

Range Resources (RRC) agreed to be acquired by EQT (EQT) in a $13B all-stock deal, creating a natural gas producer with an enterprise value of over $50B. EQT will lead the combined company, with Range's CEO joining its board. The deal is expected to close in Q1 2027, pending approvals. Range reported $1.9B revenue in H1 2026, up from $1.5B in H1 2025, while EQT reported $5.2B in H1 2026, up from $4.3B in H1 2025.

U.S. natural gas supply is abundant, with record production and storage levels, but infrastructure and grid rules pose challenges for AI data center power needs. The EIA forecasts production growth and lower prices. Companies like EQT, Kinder Morgan, Baker Hughes, and Bloom Energy reported earnings and projects related to gas-to-power.

EQT Corporation will acquire Range Resources Corporation in an all-stock deal, creating a major U.S. natural gas producer with a combined enterprise value over $50 billion. The merger aims to boost production, expand resources, and achieve $325 million in annual cost savings. The transaction is expected to close in Q1 2027, pending approvals.

EQT raised its Appalachian gas demand growth outlook to over 25 Bft3d, with half tied to pipeline projects, following its $13B acquisition of Range Resources. The deal, set to create the largest U.S. gas producer, aims to increase LNG capacity and market access. EQT CEO Toby Rice cited growing LNG export and power demand as drivers. The transaction follows recent consolidations in the U.S. natural gas sector.

EQT will acquire Range Resources in a $13B all-stock deal, creating the largest US natural gas producer. The move aims to secure supply for LNG exports and power demand, with EQT targeting 15% of gas sales for international markets. EQT CEO Toby Rice expects significant demand growth in Appalachia, driven by LNG and data center power needs.