Expand Energy beats fourth-quarter profit estimates on higher prices, production

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Feb 26 (Reuters) - U.S. natural gas producer Expand Energy EXE.O surpassed fourth-quarter profit estimates on Wednesday following a slight rebound in gas prices and higher production.

Natural gas prices rose in the quarter, hitting a two-year peak, helped by an increase in the amount of gas flowing to liquefied natural gas export plants. The prices were further bolstered by forecasts of continuing cold weather in January, which increased heating demand.

The Oklahoma City-based company, which acquired Southwestern for $7.4 billion to become the top U.S. independent natural gas producer, reported fourth-quarter production of 6.41 billion cubic feet equivalent per day (bcfepd), almost double from last year.

Its average realized gas price rose 1.4% to $2.91 per thousand cubic feet.

Expand Energy expects to invest about $2.7 billion for production of about 7.1 bcfepd in the current year, and it plans to operate about 12 rigs.

Natural gas producers are expected to benefit from a demand bump for power generation, as artificial intelligence data centers continue to drive up energy demand in the U.S.

Expand Energy also said it is increasing its 2025 synergy target by $175 million to about $400 million. Separately, it said it plans to allocate about $500 million to net debt reduction.

The natgas producer now expects capital expenditure of about $3 billion in the current year, above Wall Street estimate of $2.7 billion.

The company reported adjusted net income of 55 cents per share, for the three months ended December 31, compared with the analysts' average expectation of 48 cents per share, according to data compiled by LSEG.