Expand Energy Q3 conf call
EXE•Expand Energy said it is in talks with U.S. data center customers and expects natural gas demand to rise structurally. It expects low- to mid-single-digit cost inflation in 2027, with diesel use falling about 50% as e-fleets increase.
1. Demand and costs
Expand Energy said LNG, data centers, industrial projects and electrification are driving a structural rise in natural gas demand, and that it is in talks with data center customers across the U.S. The company has reduced its active rig count from about 12 to 10. It expects diesel use to fall about 50% in 2027 from an annual rate of about 25 million gallons, while cost pressures shift toward Haynesville service capacity; it expects low- to mid-single-digit cost inflation in 2027.
2. Haynesville outlook
Expand Energy said Western Haynesville drilling needs gas prices above $4 per MMBtu to compete for capital at current costs, and expects well productivity to improve about 2% to 3% year over year. It said potential winter output growth from private Haynesville producers could create a near-term gas supply overhang. The company also expects to expand its LNG portfolio to gain material access to global gas markets.
