Expand Energy Beats Profit Forecasts, Higher Production Offsets Lower Prices
Article excerpt
((Automated translation by Reuters using machine learning and generative AI, please refer to the following disclaimer: https://bit.ly/rtrsauto)) (Adds details throughout) U.S. natural gas producer Expand Energy EXE.O on Tuesday beat Wall Street estimates for its second-quarter earnings, as higher production offset lower natural gas prices.U.S. natural gas producers are benefiting from growing demand for natural gas from power companies to fuel data centers, as well as increasing liquefied natural gas exports. The U.S. Energy Information Administration (EIA) expects supply and demand to reach new records this year, after peaking in 2025.The company's shares rose 1.8% in extended trading. Expand, formerly Chesapeake Energy, established itself as the largest independent natural gas producer in the United States through its acquisition of Southwestern Energy in October 2024, for $7.4 billion.Expand Energy plans to invest between $2.75 billion and $2.95 billion to produce approximately 7.4 billion to 7.6 billion cubic feet equivalent per day during the current year, and plans to operate between 11 and 12 drilling rigs. The company said in October that it plans to reduce spending and increase production in 2026. It targets production of 7.5 billion cubic feet equivalent per day in 2026. It reduced its total debt by approximately $1.3 billion from the end of the year, bringing it...
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The company reported adjusted earnings of $1.33 per share for the April-June quarter, compared to an average analyst estimate of $1.12 per share, according to data compiled by LSEG.
