0000895126-26-000028
SEC filingRevenue doubled to $4.4B and net income swung to $1.2B, driven by higher natural gas prices and increased volumes from new wells.
Revenue for the first quarter of 2026 was $4.4 billion, more than double the $2.2 billion reported in the same period last year. The increase was primarily due to higher natural gas prices, including the impact of Winter Storm Fern, as well as increased sales volumes across all operating areas driven by new well production.
Operating income was $1.5 billion, compared to a loss of $268 million in the prior-year quarter, resulting in an operating margin of 34.8%. Net income was $1.2 billion, a significant improvement from a net loss of $249 million. Diluted earnings per share were $4.81, versus a loss of $1.06 per share. The turnaround reflects the combination of higher revenue and disciplined cost management.
Net cash provided by operating activities was $2.4 billion, up from $1.1 billion in the prior year. Capital expenditures totaled $707 million, resulting in free cash flow of $1.7 billion. The company used its cash flow to fund capital investments and support shareholder returns.
The company maintains a strong liquidity position, with cash on hand and an undrawn credit facility providing financial flexibility. Management believes the operational flexibility, cost structure, and liquidity position will enable the company to navigate continued price volatility.
Structural demand drivers, including new LNG export capacity, industrial onshoring, and AI-powered data centers, are expected to tighten market conditions and increase price volatility. The company plans to fund its 2026 capital program through cash on hand, operating cash flow, and borrowings under its credit facility, with the flexibility to adjust plans based on market developments.