Updated Version 2 - Correction - Expand Energy profits exceed expectations driven by rising natural gas demand

Supplemented with detailed information and background material, including EQT's performance data.

Reuters, October 27 - Expand Energy (EXE.O), the largest natural gas producer in the United States, reported third-quarter profits on Tuesday that exceeded Wall Street expectations, mainly due to increased natural gas production.

Despite ample supply resulting in price pressures, U.S. natural gas producers are benefiting from growing demand by power utilities to supply data centers, as well as rising liquefied natural gas exports.

Driven by electricity demand from artificial intelligence data centers, U.S. natural gas consumption is expected to reach a record high.

During the quarter ended September 30, Expand’s average daily natural gas production was around 7.54 billion cubic feet equivalent, up from about 7.33 billion cubic feet equivalent a year earlier.

According to London Stock Exchange Group (LSEG) compiled data, the company's adjusted earnings per share for the quarter was $1.46, surpassing the analysts' average expectation of $1.27 per share.

However, competitor EQT EQT.N—which earlier this week agreed to acquire Range Resources (link) RRC.N in an all-stock deal valued at $13 billion, creating the largest natural gas producer in the U.S.—said its output declined this quarter.

EQT's adjusted net income per share fell to $0.42 from $0.52 one year ago, but still exceeded analysts' expectations of $0.39 per share.

Expand’s shares rose 1.5% in after-hours trading, while EQT’s share price fell 1.1%.

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