Expand Energy plans to produce more US Natural Gas at lower costs

Nick Dell'Osso, CEO of Expand Energy in the United States, told analysts during a conference call on Wednesday that the company expects to spend less money to produce more natural gas between 2025 and 2026.

Dell'Osso stated that "we are spending less to produce more, which is efficiency at its best."

Expand's earnings announcement stated that its net production for 2025 would be approximately 7.15 billion cubic foot of gas equivalents per day. This is about 50 million cubic foot of gas equals per day higher than the midpoint of its previous production guidance.

Expand has reduced its capital investment expectation for the full year by approximately $75 million, to $2.85 Billion. This includes about $250 M to increase production capacity to exit 2025 with 12 rigs.

Expand stated that should market conditions warrant it, this incremental investment will allow the company to grow its production to approximately 7.5 bcfed by 2026.

A billion cubic feet of gas is enough to power five million U.S. households for one day.

Dell'Osso stated that the Haynesville Basin, in Texas and Louisiana was capable of delivering the same production as it would have taken 13 rigs in 2023.

Dell'Osso stated that "these efficiency gains are sustainable, and will deliver significant improvements to our breakeven point which currently averages less than 2.75 dollars (per 1,000 cubic feet) in the basin."

He said that "these efficiencies will continue to grow until 2026".

Expand reported that in the third quarter it averaged 11 rigs operating, drilling an average of 41 wells. Expand then converted 57 of these wells into sales. This resulted in a net production of approximately 7.33 billion cubic feet of gas, 92% of which were natural gas. (Reporting and editing by Scott DiSavino)

(source: Reuters)