U.S. energy firm CNX Resources said in its second quarter earnings that it plans to produce more natural gas this year than previously expected to meet growing demand while spending the same amount of money. Earlier this week, two other big U.S. gas producers, EQT and Range Resources, both said in their second quarter earnings that they too would produce more energy in 2025 than previously expected to meet rising demand.
Demand for gas to produce power for data centers in the U.S. and for export to the rest of the world as liquefied natural gas is on track to keep hitting record highs in coming years, according to energy analysts.
CNX, which focuses primarily on gas, said it planned capital expenditures of $450 million-$500 million in 2025, the same as its first quarter outlook, to produce about 1.68-1.70 billion cubic feet of gas equivalent per day (bcfed).
That compares with the company’s prior 2025 production guidance of 1.66-1.70 bcfed in the first quarter. In 2024, CNX spent about $540 million in capital and produced around 1.51 bcfed.
In the second quarter, the company said it produced about 1.842 bcfed, up from 1.642 bcfed in the first quarter.
Shares of CNX eased about 1% to around $32.75 in midday trade on Thursday.
Analysts at investment banking firm Piper Sandler said in a note that CNX reported a second quarter beat driven by stronger production that was partially offset by weaker gas realizations.
(Reporting by Scott DiSavino; Editing by Paul Simao and Marguerita Choy)