Independent Gas Producers Report Soaring Profits on Higher Prices

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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Second-quarter U.S. natural gas prices rose sharply when compared with the year-earlier quarter, which helped send revenue and income soaring for four large, domestic, independent, gas-oriented producers: EQT Corporation (Pittsburgh, Pennsylvania), Range Resources Corporation (Fort Worth, Texas), Antero Resources Corporation (Denver, Colorado) and Coterra Energy Incorporated (Houston, Texas).

Click on the image at right to see five years of second-quarter spot prices for natural gas at Henry Hub, Louisiana.

On earnings calls, executives at those companies not only extolled their dramatically improved second-quarter financial performances, but they also spoke in upbeat tones about a near-term future that featured growing natural gas demand fueled by liquefied natural gas (LNG) exports and growth in gas-fueled electric power generation driven by artificial intelligence (AI) and advanced manufacturing.

Click on the image at right to see five years of second-quarter earnings from the four gas producers.

They also criticized bureaucratic delays in permitting that impeded their ability to more thoroughly develop their acreage and boost their production.

EQT's stock rose 9% during the second quarter, compared with a 5% decline on the S&P Oil and Gas Exploration and Production Index. Range's stock rose 2% during the quarter, while Coterra's shares fell 12% and Antero's finished down less than 1% for the period.

Results for the four gas-oriented producers are summarized below.

EQT
On July 22, the company said it earned $784 million on sales of $2.6 billion in the most recent April-June period on a Generally Accepted Accounting Principles (GAAP) basis, a dramatic improvement over the comparable year-earlier quarter, when it earned $10 million on revenue of $852 million. EQT's second-quarter 2025 results were plumped by a $720 million gain in derivatives, partly offset by payment of $134 million to settle a class-action lawsuit.

Higher volumes of gas sales due to the acquisition of Equitrans Midstream, the just-closed acquisition of Olympus Energy and a sizable one-time gain on derivatives plumped the company's revenue and earnings compared to year-earlier quarterly results. In its earnings statement, EQT said its "tactical (production) curtailment strategy continue(d) to optimize value" during the quarter.

Quarterly volume of gas sold rose 12% to 568 billion cubic feet of equivalent (Bcfe), from 508 Bcfe for the second quarter of last year. The price EQT received for its gas rose 21% for the just-completed period, when compared with year-earlier price realizations.

The company operates exclusively in the Appalachian Basin.

EQT said gas demand growth in the Appalachian Basin could rise 6 to 7 Bcf/d by 2030, driven largely by planned construction of new gas-fired generators to meet the power demands of AI.

Click on the image at right to see EQT's projection of gas demand growth in the Appalachian Basin.

Range Resources
In its earnings announcement July 22, Range said net income soared to $238 million, more than seven times higher than year-earlier quarterly earnings of $29 million. Results were helped by a $155 million gain on derivatives.

Range operates exclusively in the Appalachian Basin. The company produces gas, crude oil and natural gas liquids (NGLs). On a gas-equivalent basis, production rose 2% to 2.2 Bcfe/d.

The average price that Range realized for its gas, including derivative settlements and after third-party transportation costs, rose 49% compared to the year-earlier quarter. Gas accounts for approximately 68% of Range's production. But price realizations for crude oil and NGLs, including derivative settlements and after third-party transportation costs, fell when compared with second-quarter 2024 results.

During the just-completed period, Range used higher earnings to repurchase $53 million of shares and paid down debt. Cash margins per million cubic feet of gas equivalent, a non-GAAP measure, rose 25% for the quarter compared to year-earlier results.

Antero Resources
This Denver, Colorado-based producer reported net profit of $157 million on revenue of $1.4 billion, a reversal from the year-earlier quarter when it lost $79 million on sales of $979 million.

Antero operates exclusively in the Appalachian Basin, like EQT and Range. Net gas-equivalent production during the quarter averaged about 3.4 Bcfe/d, about two-thirds of which was gas. Revenue from gas sales rose about 83% during the quarter compared to the April-June 2024 period, while revenue from sales of NGLs and oil declined slightly.

The company used some of its incremental cash flow during the quarter to pay down nearly $200 million of debt and buy back approximately $85 million of stock.

Executives from Antero joined their brethren at other gas producers in predicting a bright near-term future where demand for gas is expected to rise.

Click on the image at right to see a projection of increased national LNG export capacity from Antero, using third-party data.

In the company's July 31 earnings release, Paul Rady, chief executive officer, said: "Looking ahead, natural gas demand is expected to grow by more than 25% by 2030, driven by LNG export growth and increasing power demand fueled by AI data centers. Antero is uniquely positioned to benefit from both the significant new LNG capacity and the strong regional power demand growth that is anticipated by the end of the decade."

Coterra Energy
On August 5, Coterra said it earned $511 million on sales of about $2 billion, a sharp gain over the $220 million it earned on revenue of approximately $1.3 billion in the comparable year-earlier quarter. The just-concluded period included a $232 million gain in derivatives.

Coterra operates in the Permian Basin, Marcellus Shale and Anadarko Basin.

Revenue from oil sales increased about 15% when compared with April-June 2024 results, while gas revenue shot up 88% and NGL sales jumped 24%.

In announcing earnings, Tom Jorden, Coterra's chief executive officer, said second-quarter performance was bolstered by lower-than-expected capital expenditures and higher-than-expected production. The company's diversified commodity mix helped manage its risks to fluctuations in any hydrocarbon commodity, he added.

During the just-completed period, the company said it returned about 58% of its free cash flow to investors in the form of dividends ($168 million) and share repurchases ($23 million). Coterra also repaid $100 million of term loans.

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