US gas producer CNX resources increases 2025 production estimate without additional spending

CNX Resources, a U.S. energy company, said in its earnings for the second quarter that it planned to produce more gas than expected this year to meet rising demand and spend the same amount. Two other major U.S. producers of gas, EQT, and Range Resources both announced in their second-quarter earnings earlier this week that they would also produce more energy by 2025 to meet the rising demand.

Energy analysts predict that demand for liquefied gas for powering data centers and exporting to other countries will continue to reach record levels in the coming years.

CNX, a company that focuses primarily in gas, has said it plans to invest $450-$500 millions of capital in 2025. This is the same amount as its outlook for the first quarter, and will produce approximately 1.68-1.70 billion cubic feet of equivalent gas per day (bcfed).

This compares to the company's previous 2025 production guidance in the first quarter of 1,66-1,70 bcfed. CNX invested around $540 million and produced about 1.51 bcfed in 2024.

The company reported that it produced 1.842 billion pounds of food equivalent in the second quarter. This is up from 1.642 billion pounds in the first.

CNX shares fell about 1% in Thursday's midday trading to $32.75.

Piper Sandler analysts said that CNX's second quarter results were better than expected, largely due to higher production. However, this was offset by lower gas prices. (Reporting and editing by Paul Simao, Marguerita Choy, and Scott DiSavino)

(source: Reuters)