Expand Energy, a Natgas producer, posts a quarterly profit as production surges

Expand Energy, the U.S. natural-gas producer, reported a profit on Tuesday for the third quarter, compared to a loss a year ago, due to increased production and higher commodity prices.

The average U.S. Natural Gas prices increased by more than 26 percent year-on-year in the third quarter. This was due to strong LNG exports, and a growing demand driven by AI-focused data centres.

Expand Energy was created after Chesapeake Energy acquired Southwestern Energy in 2013, creating the largest independent natural gas producer of the U.S.

The total production of the company averaged 7.33 billion equivalent cubic feet per day (bcfed), up from 2.65bcfed one year ago.

The average realized price for natural gas in the United States was $2.81/Mcf, compared to $2.51/Mcf a year ago.

Expand Energy has also signed an agreement for 15 years with Lake Charles Methanol - a clean energy company located near Lake Charles - to become the exclusive supplier of natural gases, starting in 2030.

It anticipates a net production of 7.15 billion cfd for the current fiscal year. This is higher than its midpoint forecast, which ranged from 7 to 7.2 billion cfd. It plans to produce 7.5 billion bcfed by 2026.

Oklahoma City-based company reduced its capital investment expectation for the full year by approximately $75 million, to $2.85 Billion.

Expand Energy posted a profit for the third quarter of $547m, or $2.28 a share. This compares to a loss of $114m, or 85c per share a year ago.

After the bell, its shares jumped 2.7%. Reporting by Vallari Shrivastava from Bengaluru, editing by Shilpa Majumdar

(source: Reuters)