Oct 28 (Reuters) - U.S. natural gas producer Expand Energy (EXE.O) , opens new tab reported a profit for the third quarter on Tuesday, compared with a year-ago loss, driven by increased output and stronger commodity prices.

Average U.S. natural gas prices jumped more than 26% year-on-year during the quarter, driven by strong liquefied natural gas exports and growing demand fueled by the rapid expansion of AI-focused data centers.

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Expand Energy was formed after Chesapeake Energy's acquisition of Southwestern Energy last year, creating the biggest independent natural gas producer in the U.S.

The company's total production averaged 7.33 billion cubic feet equivalent per day (bcfed) during the quarter, up from 2.65 bcfed a year earlier.

Average realized price of natural gas was $2.81 per thousand cubic feet (Mcf), compared with $2.51 Mcf a year earlier.

Expand Energy also signed a 15-year agreement with Lake Charles Methanol to be the sole supplier of natural gas to the clean-energy project, beginning 2030.

Piper Sandler analyst Mark Lear said the Lake Charles supply agreement highlights Expand's geographic advantage and premium pricing opportunity.

The company also expanded its footprint in the Western Haynesville and Southwest Appalachia, located in the Marcellus shale and rich in natural gas deposits, during the second half of the year by acquiring roughly 82,500 acres.

Expand Energy expects net production to be 7.15 bcfed for the current year, higher than the midpoint of its previous forecast of 7 bcfed to 7.2 bcfed. It aims to produce 7.5 bcfed in 2026.

The company also reduced its full-year capital investment expectations by roughly $75 million to $2.85 billion.

Expand Energy reported a profit of $547 million, or $2.28 per share, for the quarter ended September 30, compared with a net loss of $114 million, or 85 cents per share, a year earlier.

Its shares rose 3.3% in trading after the bell.

https://www.reuters.com/business/energy/natgas-producer-expand-energy-posts-profit-third-quarter-2025-10-28/