Expand Energy exceeds its fourth-quarter profit expectations and plans to reduce debt by $1 billion in 2026

?U.S. Expand Energy, a natural gas producer, beat Wall Street's estimates for the fourth quarter profit on Tuesday. It aims to improve its balance sheet by reducing debts of at least $1 billion in 2026.

The company was able to benefit from the higher prices, as U.S. Natural Gas Futures jumped over 11% sequentially during the fourth quarter. This broke a downward trend that began in the second quarter.

Natural gas prices averaged $3.37/Mcf, up from $2.91/Mcf one year earlier.

Production averaged 7.4 billion cubic foot per day for the company during the reported 'quarter. This is up from 6.41 bcfe/d the previous?year.

In extended trading, shares of the natgas producer were up by 1.2%.

Expand Energy (formerly known as Chesapeake Energy) announced in October its plans to reduce spending and increase production by 2026.

The company plans to invest approximately $2.85 billion to produce?7.5 Bcfe/d this year. It will run 11 to 12 rigs.

According to the U.S. Energy Information Administration, natural?gas demand and supply will reach record levels by 2025. Energy Information Administration expects the supply to rise.

Another Record

This year is the first time that we will be able to see this.

The company was announcing its plans to expand in the coming months.

The following are the names of those who have been appointed.

Chairman Michael Wichterich was appointed as interim CEO of the company and it announced plans to move its corporate headquarters from Oklahoma City to Houston this year.

According to LSEG, the 'company' posted an adjusted profit of $2 per share in the?quarter that ended December 31 compared to analysts' average estimates of $1.88. (Reporting from Sumit Saha, Bengaluru. Editing by Alan Barona.)

(source: Reuters)