U.S. natural gas producer Expand Energy beat Wall Street estimates for fourth-quarter profit on Tuesday and aims to strengthen its balance sheet with at least $1 billion in debt reduction in 2026.
The company benefited from higher prices as U.S. natural gas futures rose over 11% sequentially in the fourth quarter, breaking a falling streak that started in the second quarter, driven by stronger demand and increased pipeline volumes.
The average realized price of natural gas was $3.37 per thousand cubic feet, compared with $2.91 Mcf a year earlier.
The company’s production averaged around 7.4 billion cubic feet per day during the reported quarter, up from about 6.41 bcfe/d in the prior year.
Shares of the natgas producer were up 1.2% in the extended trading.
Expand Energy, previously known as Chesapeake Energy, said in October that it planned to lower spending and boost production in 2026.
The company expects to invest about $2.85 billion for the production of about 7.5 bcfe/d in the current year, and it plans to run between 11 and 12 rigs.
Natural gas supply and demand reached record levels in 2025, according to the U.S. Energy Information Administration, which expects supply to notch another record this year.
Earlier this month, the company appointed Chairman Michael Wichterich as its interim CEO and said it plans to relocate its corporate headquarters to Houston from Oklahoma City this year.
The company posted an adjusted profit of $2 per share for the quarter ended December 31, compared with analysts’ average estimate of $1.88, according to data compiled by LSEG.
(Reporting by Sumit Saha in Bengaluru; Editing by Alan Barona)