Expand Energy tops profit estimates as higher output offsets lower gas prices

Expand, formerly known as Chesapeake Energy, reshaped itself into the largest independent U.S. natural gas producer through its $7.4 billion acquisition of Southwestern Energy in October 2024.

Expand Energy expects to invest about $2.75 billion to $2.95 billion for the production of about 7.4–7.6 billion cubic feet equivalent per day in the current year, and it plans to operate about 11 to 12 rigs.

The company said in October that it planned to lower spending and boost production in 2026. It aims to produce 7.5 bcfe/d in 2026.

It reduced its total debt by about $1.3 billion from year-end to $3.7 billion and lowered net debt to $3.1 billion.

Natural gas production averaged about 6.9 Bcf/d during the quarter ended June, up from about 6.6 Bcf/d a year earlier.

However, the average realized price of natural gas was $2.90 per thousand cubic feet (Mcf), compared with $2.98 Mcf a year earlier.

Natural gas futures NGc1 averaged $3.020 per million British thermal units, down 17.5% from a year earlier.

The company posted an adjusted profit of $1.33 per share for the April-to-June quarter, compared with the analysts' average estimate of $1.12 per share, according to data compiled by LSEG.

Earlier this month, Expand Energy said it would buy privately held natural gas marketer Twin Eagle Holdings from Five Point Infrastructure for $1.25 billion to expand its marketing business across North America.

July 28 (Reuters) - U.S. natural gas producer Expand Energy EXE.O beat Wall Street estimates for second-quarter profit on Tuesday, as higher production offset weaker natural gas prices.

U.S. natural gas producers are benefiting from rising demand for natural gas from electric utilities to power data centers, alongside increasing liquefied natural gas exports.