Updated Version 3 - Correction - Expand Energy Exceeds Production Growth Expectations; EQT Profits Decline

Paragraphs 8 to 11 supplement with background and details on EQT's performance

Reuters, October 27 - Expand Energy (EXE.O), the largest U.S. natural gas producer, reported third-quarter profits on Tuesday that exceeded Wall Street expectations, driven largely by increased natural gas production.

Even as ample supply pressured prices, U.S. natural gas producers are benefiting from rising demand as electricity companies power data centers and from increased liquefied natural gas exports.

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

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

By net daily production, Expand Energy is the largest independent natural gas producer in the United States, operating mainly in the Appalachian and Haynesville regions.

According to data compiled by London Stock Exchange Group (LSEG), the company reported adjusted earnings per share this quarter of $1.46, beating the analysts’ average estimate of $1.27 per share.

EQT’s profit fell due to production decline

Rival EQT (EQT.N) earlier this week agreed to acquire Range Resources (link) RRC.N in an all-stock deal valued at $13 billion. On Tuesday, the company reported a drop in third-quarter profits due to lower production during the quarter.

Weighed down by the weaker performance of U.S. natural gas futures NGc1, EQT’s average realized price for natural gas production this quarter fell about 1.5% year-on-year to $2.72 per thousand cubic feet equivalent.

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The company aims to reclaim its position as the largest U.S. natural gas producer through the Range deal. EQT expects that after the merger, the company’s net output will exceed 9 bcfe/d.

Meanwhile, on Tuesday, Expand narrowed its annual production forecast range from the previous 7.4-7.6 bcfe/d to 7.45-7.55 bcfe/d.

For the quarter, EQT’s net profit attributable to shareholders fell by about 17% to $279 million. However, its adjusted profit of 42 cents per share still beat analysts’ expectations of 39 cents per share.

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Shares of Expand rose 1.5% in after-hours trading, while EQT shares fell 1.1%.

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