Expand Energy lifts annual production, capex forecasts on higher natgas prices

April 28 (Reuters) - U.S. natural gas producer Expand Energy EXE.O beat Wall Street estimates for first-quarter profit on Tuesday and raised its capital spending and production outlook for 2026, citing stronger commodity prices and higher output.

U.S. natural gas futures NGc1 were up more than 8% on average in the January to March quarter from a year ago, lifted by a brief January surge in spot prices during Winter Storm Fern. Geopolitical tensions provided only limited additional support.

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.

“The world critically needs natural gas supply to meet rapidly rising power demand, growing industrial activity, and global LNG expansion to address a global reset in energy security,” said Mike Wichterich, CEO of Expand Energy.

Shares of the company were up 0.7% in extended trading.

The company said on Wednesday it has signed a deal with Delfin FLNG 1 to buy about 1.15 million tonnes per year of LNG from 2031, subject to a final investment decision.

Expand expects to run 11 to 12 rigs and invest approximately $2.85 billion in 2026, yielding an estimated daily production of 7.5 billion cubic feet equivalent per day.

The average realized price of natural gas was $4.28 per thousand cubic feet (Mcf) in the first quarter, compared with $3.51 Mcf a year earlier.

The company posted an adjusted profit of $3.83 per share for the quarter ended March 31, compared with the analysts' average estimate of $3.64 per share, according to data compiled by LSEG.