US natgas producer Expand Energy reports quarterly profit on higher output and prices

Expand Energy EXE reported a second-quarter profit on Tuesday, compared with a year-earlier loss, as it benefited from higher output and stronger commodity prices, sending the U.S. natgas producer's shares up over 2% after the bell.

Formerly called Chesapeake Energy, Expand became the country's biggest independent natural gas producer after completing its $7.4 billion acquisition of Southwestern Energy in October 2024.

The firm's total production came in at 7.2 billion cubic feet equivalent per day (Bcfed) during the quarter, of which 92% or 6.6 billion cubic feet per day (Bcfd) was natural gas. In the prior year, it only produced 2.75 Bcfd of natgas.

The company also benefited from higher U.S. natural gas prices NG1!, which have rebounded from multi-year lows touched last year buoyed by record flows to LNG export facilities and rising electricity consumption.

Expand Energy's average realized price for natural gas in the second quarter was $2.98 per thousand cubic feet (Mcf), compared with $2.51 per Mcf a year earlier.

The results come as the energy industry braces for the impact of U.S. President Donald Trump's plan to impose tariffs on most imports. The resulting trade war has left the industry grappling with volatile commodity prices and an uncertain macroeconomic environment.

Expand Energy now expects capital expenditures to range between $2.85 billion and $3.0 billion in 2025, down from its prior view of $2.9 billion to $3.1 billion.

The company added that it remains on track to increase output by more than 5% in 2026 compared to levels expected in 2025, provided market conditions support such a move.

The Oklahoma City-based company reported a net income of $968 million, or $4.02 per share, for the three months ended June 30, compared with a loss of $227 million, or $1.73 per share, a year earlier.