Expand Energy raises its annual production and capex forecasts due to higher natgas price
Expand Energy, the U.S. natural-gas producer, beat Wall Street's estimates for its first-quarter profits on Tuesday and increased its outlook for capital spending and production?for 2026. It cited a combination of?stronger commodities prices and higher output.
U.S. natural gas futures rose by more than 8% in average from the quarter of January to March compared to a year earlier, boosted by a brief surge in January spot prices due Winter Storm Fern. Geopolitical tensions were only a limited support.
According to the U.S. Energy Information Administration (EIA), natural gas supply and demand reached a record high in 2025. The EIA expects that supply will reach another record level this year.
Mike Wichterich is the CEO of Expand Energy. He said, "The world needs natural gas to meet rapidly rising power demand, industrial growth, and global LNG supply?to address an?global reset on energy security."
In extended trading, shares of the company rose 0.7%.
The company announced on Wednesday that it had signed a contract with Delfin FLNG 1, to purchase approximately?1,15 million tonnes of LNG per year from 2031. This deal is subject to final investment decisions.
Expand is expecting to run 11-12 rigs, invest $2.85 billion and produce 7.5 billion cubic foot equivalents per day.
In the first quarter of this year, the average price realized for natural gas was $4.28/Mcf. This compares to $3.51/Mcf one year ago.
According to LSEG, the company reported a profit adjusted of $3.83 per share for the three-month period ending March 31. This compares with an average analyst estimate of $3.64. Varun Sahay, Bengaluru. Editing by Sahal Muhammad.
(source: Reuters)
