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Southern Energy Corp on Tuesday said it was well-positioned to deliver ‘meaningful’ shareholder value, noting rising Southeast US power demand and higher gas prices. The natural gas and light oil assets company with operations in Mississippi said petroleum and natural gas sales rose 2.6% to $4.0 million in the second quarter of 2025, from $3.9 million a year ago. Net loss narrowed to $411,000 from $2.6 million. Average production of gas was 11.3 million cubic feet equivalent per day, down 27% from 15.5 million a year ago. However, the average realised natural gas price jumped 61% to $3.63 per thousand cubic feet, up 61% from $2.26 a year ago. The production was 96% natural gas. The company noted that the average realised oil price fell 22% to $62.60 per barrel in the second quarter, from $80.06 per barrel a year ago. Chief Executive Officer Ian Atkinson noted rising Southeast US power demand: ‘The GH LSC 13-13 #2 well has already begun contributing significant new volumes with minimal incremental operating cost and benefited from an approximate 17% premium to Henry Hub pricing due to rising Southeast US power demand during the start of summer. This premium underscores the strategic advantage of our geographic positioning and the strengthening macro backdrop.’ Looking ahead, CEO Atkinson said the company expects new volumes to materially enhance its third quarter cash profile. He said: ‘With a constructive outlook for natural gas pricing into the back half of 2025 and into 2026, combined with two additional high-quality drilled uncompleted horizontal wells, a deep inventory of drilling opportunities and ongoing capital discipline, Southern is well-positioned to deliver meaningful shareholder value through the remainder of the year and beyond.’ Southern Energy shares rose 4.7% to 3.14 pence each on Tuesday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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