Expand Energy Corporation Reports First Quarter 2025 Results
Expand Energy (NASDAQ: EXE) reported its Q1 2025 financial results, with net cash from operations of $1,096 million but a net loss of $249 million ($1.06 per share). The company achieved adjusted net income of $487 million ($2.02 per share) and adjusted EBITDAX of $1,395 million.
Key highlights include:
- Production of 6.79 Bcfe/d (92% natural gas)
- Addition to the S&P 500 in March 2025
- Upgrade to Investment Grade credit rating by Moody's
- Quarterly dividend of $0.575 per share
- On track for $400 million in 2025 synergies
The company operated 11 rigs, drilling 46 wells and completing 89 wells in Q1. For 2025, Expand Energy plans to run 12 rigs with $2.7 billion investment, targeting daily production of 7.1 Bcfe/d. The company aims to increase rig count to 15 by year-end 2025, with potential production growth to 7.5 Bcfe/d in 2026.
Expand Energy (NASDAQ: EXE) ha comunicato i risultati finanziari del primo trimestre 2025, registrando un flusso di cassa netto operativo di 1.096 milioni di dollari, ma una perdita netta di 249 milioni di dollari (1,06 dollari per azione). L'azienda ha ottenuto un utile netto rettificato di 487 milioni di dollari (2,02 dollari per azione) e un EBITDAX rettificato di 1.395 milioni di dollari.
I punti salienti includono:
- Produzione di 6,79 Bcfe/giorno (92% gas naturale)
- Ingresso nell'S&P 500 a marzo 2025
- Upgrade del rating creditizio a Investment Grade da Moody's
- Dividendo trimestrale di 0,575 dollari per azione
- Obiettivo di sinergie per 400 milioni di dollari nel 2025
L'azienda ha operato con 11 piattaforme, perforando 46 pozzi e completandone 89 nel primo trimestre. Per il 2025, Expand Energy prevede di gestire 12 piattaforme con un investimento di 2,7 miliardi di dollari, puntando a una produzione giornaliera di 7,1 Bcfe. L'intenzione è di aumentare il numero di piattaforme a 15 entro la fine del 2025, con una possibile crescita della produzione a 7,5 Bcfe/giorno nel 2026.
Expand Energy (NASDAQ: EXE) informó sus resultados financieros del primer trimestre de 2025, con un flujo de caja neto operativo de 1.096 millones de dólares, pero una pérdida neta de 249 millones de dólares (1,06 dólares por acción). La compañía alcanzó un ingreso neto ajustado de 487 millones de dólares (2,02 dólares por acción) y un EBITDAX ajustado de 1.395 millones de dólares.
Los aspectos destacados incluyen:
- Producción de 6,79 Bcfe/día (92% gas natural)
- Incorporación al S&P 500 en marzo de 2025
- Mejora a calificación crediticia Investment Grade por Moody's
- Dividendo trimestral de 0,575 dólares por acción
- Objetivo de sinergias de 400 millones de dólares en 2025
La compañía operó 11 plataformas, perforando 46 pozos y completando 89 durante el primer trimestre. Para 2025, Expand Energy planea operar 12 plataformas con una inversión de 2,7 mil millones de dólares, con una meta de producción diaria de 7,1 Bcfe. La empresa apunta a aumentar a 15 plataformas para finales de 2025, con un posible crecimiento de producción a 7,5 Bcfe/día en 2026.
Expand Energy (NASDAQ: EXE)는 2025년 1분기 재무 실적을 발표했으며, 영업 현금 흐름은 10억 9,600만 달러였으나 순손실은 2억 4,900만 달러(주당 1.06달러)를 기록했습니다. 조정 순이익은 4억 8,700만 달러(주당 2.02달러), 조정 EBITDAX는 13억 9,500만 달러를 달성했습니다.
주요 내용은 다음과 같습니다:
- 일일 생산량 6.79 Bcfe (92% 천연가스)
- 2025년 3월 S&P 500 편입
- 무디스 신용 등급 투자적격(Investment Grade) 상향
- 분기 배당금 주당 0.575달러
- 2025년 시너지 효과 4억 달러 목표
회사는 11대의 시추 장비를 운영하며 1분기에 46개의 시추공을 뚫고 89개를 완성했습니다. 2025년에는 12대의 시추 장비를 운영하며 27억 달러를 투자하여 일일 생산량 7.1 Bcfe를 목표로 하고 있습니다. 2025년 말까지 시추 장비를 15대로 늘리고 2026년에는 생산량을 7.5 Bcfe까지 확대할 계획입니다.
Expand Energy (NASDAQ: EXE) a publié ses résultats financiers du premier trimestre 2025, avec un flux de trésorerie net provenant des opérations de 1 096 millions de dollars, mais une perte nette de 249 millions de dollars (1,06 dollar par action). La société a réalisé un bénéfice net ajusté de 487 millions de dollars (2,02 dollars par action) et un EBITDAX ajusté de 1 395 millions de dollars.
Les points clés sont :
- Production de 6,79 Bcfe/jour (92 % de gaz naturel)
- Intégration au S&P 500 en mars 2025
- Amélioration de la notation de crédit à Investment Grade par Moody's
- Dividende trimestriel de 0,575 dollar par action
- Objectif de synergies de 400 millions de dollars en 2025
La société a exploité 11 plateformes, forant 46 puits et en achevant 89 au premier trimestre. Pour 2025, Expand Energy prévoit d’exploiter 12 plateformes avec un investissement de 2,7 milliards de dollars, visant une production quotidienne de 7,1 Bcfe. Elle vise à augmenter le nombre de plateformes à 15 d’ici la fin 2025, avec une croissance potentielle de la production à 7,5 Bcfe/jour en 2026.
Expand Energy (NASDAQ: EXE) veröffentlichte seine Finanzergebnisse für das erste Quartal 2025 mit einem Nettobarmittelzufluss aus dem operativen Geschäft von 1.096 Millionen US-Dollar, jedoch einem Nettoverlust von 249 Millionen US-Dollar (1,06 US-Dollar pro Aktie). Das Unternehmen erzielte einen bereinigten Nettogewinn von 487 Millionen US-Dollar (2,02 US-Dollar pro Aktie) und ein bereinigtes EBITDAX von 1.395 Millionen US-Dollar.
Wichtige Highlights sind:
- Produktion von 6,79 Bcfe/Tag (92 % Erdgas)
- Aufnahme in den S&P 500 im März 2025
- Aufwertung der Investment-Grade-Kreditwürdigkeit durch Moody's
- Quartalsdividende von 0,575 US-Dollar pro Aktie
- Ziel von 400 Millionen US-Dollar Synergien im Jahr 2025
Das Unternehmen betrieb 11 Bohranlagen, bohrte 46 Bohrlöcher und schloss 89 Bohrungen im ersten Quartal ab. Für 2025 plant Expand Energy, 12 Bohranlagen mit einer Investition von 2,7 Milliarden US-Dollar zu betreiben und eine tägliche Produktion von 7,1 Bcfe anzustreben. Das Unternehmen plant, die Anzahl der Bohranlagen bis Ende 2025 auf 15 zu erhöhen, mit einem möglichen Produktionswachstum auf 7,5 Bcfe/Tag im Jahr 2026.
- Net cash from operations of $1,096 million in Q1 2025
- Adjusted net income of $487 million ($2.02 per share)
- Added to S&P 500 index in March 2025
- Upgraded to Investment Grade by Moody's (Baa3)
- Maintained quarterly dividend of $0.575 per share for 17th straight quarter
- On track for $400M synergies in 2025, targeting $500M by 2026
- High natural gas production at 6.79 Bcfe/d (92% natural gas)
- Planned production increase to 7.5 Bcfe/d by 2026
- Strong operational execution with 89 wells turned online in Q1
- Net loss of $249 million ($1.06 per diluted share) in Q1 2025
- Significant capital expenditure requirement of $2.7 billion for 2025
- Additional $300M capital investment needed for rig expansion
- High debt levels requiring $500M allocation to debt reduction in 2025
- Derivative losses of $1,014 million in Q1 2025
Insights
Q1 shows GAAP loss from derivatives but solid adjusted metrics; Investment Grade rating achieved; synergy capture on track.
Expand Energy's Q1 2025 results present a mixed financial picture. The company reported a GAAP net loss of $249 million ($1.06 per share), contrasting with adjusted net income of $487 million ($2.02 per share). This substantial difference is primarily explained by the $1,014 million derivatives loss shown in the income statement, reflecting non-cash mark-to-market impacts in a volatile commodity environment.
The company generated $1,096 million in operating cash flow and $1,395 million in Adjusted EBITDAX, indicating solid underlying operational performance despite the headline loss. Notably, Expand Energy achieved a significant milestone with Moody's upgrade to Investment Grade (Baa3), completing uniform Investment Grade ratings from all agencies - this should translate to lower borrowing costs and enhanced financial flexibility.
The synergy capture from their merger appears on track, with $400 million expected in 2025 and the full $500 million target by end of 2026. The company maintains its capital return priorities, continuing the $0.575 quarterly dividend for the 17th straight quarter while targeting $500 million for debt reduction in 2025. This balanced approach to shareholder returns and balance sheet strength positions them well despite the current natural gas market volatility.
Largest US natural gas producer maintaining production while building capacity for strategic growth amid market volatility.
Expand Energy is executing a disciplined natural gas-focused strategy with 92% of its 6.79 Bcfe/d production being natural gas. Their operational approach in this volatile market environment demonstrates a clear balance between maintaining base production and preparing for selective growth opportunities.
The company's 2025 capital program shows strategic flexibility: a base program of $2.7 billion with approximately 12 rigs to maintain ~7.1 Bcfe/d production, plus an incremental $300 million to exit 2025 with approximately 15 rigs. This positions them to potentially grow production to 7.5 Bcfe/d in 2026 if market conditions warrant - showing their ability to respond efficiently to changing natural gas prices.
Q1 operational metrics were solid, with 11 rigs drilling 46 wells and turning 89 wells in line. The addition to the S&P 500 effective March 24, 2025 represents significant institutional recognition that typically enhances trading liquidity and broadens their investor base. Combined with their achievement of uniform Investment Grade credit ratings, these developments strengthen Expand's position as the self-described "largest natural gas producer in the United States" during a period when many producers are facing challenging market dynamics.
OKLAHOMA CITY, April 29, 2025 (GLOBE NEWSWIRE) -- Expand Energy Corporation (NASDAQ: EXE) (“Expand Energy” or the “Company”) today reported first quarter 2025 financial and operating results.
- Net cash provided by operating activities of
$1,096 million - Net loss of
$249 million , or$1.06 per fully diluted share; adjusted net income(1) of$487 million , or$2.02 per share - Adjusted EBITDAX(1) of
$1,395 million - Produced approximately 6.79 Bcfe/d net (
92% natural gas) - Added to the S&P 500, effective March 24, 2025
- Upgraded to Investment Grade credit rating by Moody’s (Baa3); achieved uniform Investment Grade rating from all rating agencies
- Quarterly base dividend of
$0.57 5 per common share to be paid in June 2025, 17th straight quarter of paying a dividend - On track to capture approximately
$400 million in 2025 synergies, with the total target of$500 million in annual synergies expected to be achieved by year end 2026
(1) Definitions of non-GAAP financial measures and reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure are included at the end of this news release.
“Overcoming market volatility requires a resilient financial foundation, a deep market-connected portfolio, and low cost, efficient operations, all hallmarks of our strategy,” said Nick Dell’Osso, Expand Energy’s President and Chief Executive Officer. “We continue to execute our business, utilizing our productive capacity to navigate today’s dynamic macro environment and be prepared to efficiently respond as market conditions change.”
Operations Update
Expand Energy operated an average of 11 rigs during the first quarter, drilling 46 wells and turning 89 wells in line, resulting in net production of approximately 6.79 Bcfe per day (
2025 Annual Synergy, Capital and Operating Outlook
In 2025, Expand Energy expects to run approximately 12 rigs and invest approximately
Expand Energy is on track to capture its 2025 expected annual synergy target of approximately
A detailed breakdown of 2025 annual synergy, capital, and operating outlook can be found in supplemental slides which have been posted at https://investors.expandenergy.com/events-presentations.
Shareholder Returns Update
Expand Energy enhanced its capital return framework in 2024 to more efficiently return cash to shareholders and reduce Net Debt. The Company plans to pay its quarterly base dividend of
Conference Call Information
A conference call to discuss Expand Energy’s first quarter 2025 financial and operating results and 2025 outlook has been scheduled for 9 a.m. EDT on April 30, 2025. Participants can access the live webcast at https://edge.media-server.com/mmc/p/kn8j2wew/. Participants who would like to ask a question, can register at https://register-conf.media-server.com/register/BIb82422792483441f93f8794cbf385f7c, and will receive the dial-in info and a unique PIN to join the call. Links to the conference call will be provided at https://investors.expandenergy.com/. A replay will be available on the website following the call.
Financial Statements, Non-GAAP Financial Measures and 2025 Guidance and Outlook Projections
This news release contains the non-GAAP financial measures described below in the section titled “Non-GAAP Financial Measures.” Reconciliations of each non-GAAP financial measure used in this news release to the most directly comparable GAAP financial measure are provided below. Additional detail on the Company’s 2025 first quarter financial and operational results, along with non-GAAP measures that adjust for items typically excluded by securities analysts, are available on the Company’s website. Non-GAAP measures should not be considered as an alternative to, or more meaningful than, GAAP measures. Management’s guidance for 2025 can be found on the Company’s website at https://www.expandenergy.com/.
Expand Energy Corporation (NASDAQ: EXE) is the largest natural gas producer in the United States, powered by dedicated and innovative employees focused on disrupting the industry’s traditional cost and market delivery model to responsibly develop assets in the nation’s most prolific natural gas basins. Expand Energy’s returns-driven strategy strives to create sustainable value for its stakeholders by leveraging its scale, financial strength and operational execution. Expand Energy is committed to expanding America’s energy reach to fuel a more affordable, reliable, lower carbon future.
Forward-Looking Statements
This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include our current expectations or forecasts of future events, including matters relating to armed conflict and instability in Europe and the Middle East, along with the effects of the current global economic environment, and the impact of each on our business, financial condition, results of operations and cash flows, actions by, or disputes among or between, members of OPEC+ and other foreign oil-exporting countries, market factors, market prices, our ability to meet debt service requirements, our ability to continue to pay cash dividends, our ability to capture synergies, the amount and timing of any cash dividends and our environmental, social, and governance ("ESG") initiatives. Forward-looking and other statements in this news release regarding our environmental, social and other sustainability plans and goals are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the Securities and Exchange commission (“SEC”). In addition, historical, current, and forward-looking environmental, social and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Forward-looking statements often address our expected future business, financial performance and financial condition, and often contain words such as “aim”, “predict”, “should”, “expect,” “could,” “may,” “anticipate,” “intend,” “plan,” “ability,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “guidance,” “outlook,” “opportunity” or “strategy.” The absence of such words or expressions does not necessarily mean the statements are not forward-looking.
Although we believe the expectations and forecasts reflected in our forward-looking statements are reasonable, they are inherently subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. No assurance can be given that such forward-looking statements will be correct or achieved or that the assumptions are accurate or will not change over time. Particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include:
- Reduced demand for natural gas, oil, and natural gas liquids (“NGLs”);
- negative public perceptions of our industry;
- competition in the natural gas and oil exploration and production industry;
- the volatility of natural gas, oil and NGL prices, which are affected by general economic and business conditions, as well as increased demand for (and availability of) alternative fuels and electric vehicles;
- risks from regional epidemics or pandemics and related economic turmoil, including supply chain constraints;
- write-downs of our natural gas and oil asset carrying values due to low commodity prices;
- significant capital expenditures are required to replace our reserves and conduct our business;
- our ability to replace reserves and sustain production;
- uncertainties inherent in estimating quantities of natural gas, oil and NGL reserves and projecting future rates of production and the amount and timing of development expenditures;
- drilling and operating risks and resulting liabilities;
- our ability to generate profits or achieve targeted results in drilling and well operations;
- leasehold terms expiring before production can be established;
- risks from our commodity price risk management activities;
- uncertainties, risks and costs associated with natural gas and oil operations;
- our need to secure adequate supplies of water for our drilling operations and to dispose of or recycle the water used;
- pipeline and gathering system capacity constraints and transportation interruptions;
- risks related to our plans to participate in the global LNG value chain;
- terrorist activities and/or cyber-attacks adversely impacting our operations;
- risks from failure to protect personal information and data and compliance with data privacy and security laws and regulations;
- disruption of our business by natural or human causes beyond our control;
- a deterioration in general economic, business or industry conditions;
- the impact of inflation and commodity price volatility, including as a result of decisions made by OPEC+ and armed conflict and instability in Europe and the Middle East, along with the effects of the current global economic environment, on our business, financial condition, employees, contractors, vendors and the global demand for natural gas and oil and on U.S. and global financial markets;
- our inability to access the capital markets on favorable terms;
- the limitations on our financial flexibility due to our level of indebtedness and restrictive covenants from our indebtedness;
- challenges with employee retention and increasingly competitive labor market
- risks related to acquisitions or dispositions, or potential acquisitions or dispositions;
- security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, or from breaches of information technology systems of third parties with whom we transact business;
- our ability to achieve and maintain ESG certifications, goals and commitments;
- legislative, regulatory, and ESG initiatives, including those addressing the impact of climate change or further regulating hydraulic fracturing, methane emissions, flaring or water disposal;
- federal and state tax proposals affecting our industry;
- risks related to an annual limitation on the utilization of our tax attributes, which was triggered upon the completion of our merger with Southwestern Energy Company (the “Southwestern Merger”), as well as trading in our common stock, additional issuance of common stock, and certain other stock transactions, which could lead to an additional, potentially more restrictive, annual limitation; and
- other factors that are described under Risk Factors in Item 1A of Part I of our Annual Report on Form 10-K filed with the SEC.
We caution you not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of the filing date, and we undertake no obligation and have no intention to update any forward-looking statement, except as required by law. We urge you to carefully review and consider the disclosures in this news release and our filings with the SEC that attempt to advise interested parties of the risks and factors that may affect our business.
All forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement.
| INVESTOR CONTACT: | MEDIA CONTACT: |
| Chris Ayres | Brooke Coe |
| (405) 935-8870 | (405) 935-8878 |
| ir@expandenergy.com | media@expandenergy.com |
| CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) |
| ($ in millions, except per share data) | March 31, 2025 | December 31, 2024 | ||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 349 | $ | 317 | ||||
| Restricted cash | 78 | 78 | ||||||
| Accounts receivable, net | 1,361 | 1,226 | ||||||
| Derivative assets | — | 84 | ||||||
| Other current assets | 325 | 292 | ||||||
| Total current assets | 2,113 | 1,997 | ||||||
| Property and equipment: | ||||||||
| Natural gas and oil properties, successful efforts method | ||||||||
| Proved natural gas and oil properties | 23,874 | 23,093 | ||||||
| Unproved properties | 5,774 | 5,897 | ||||||
| Other property and equipment | 678 | 654 | ||||||
| Total property and equipment | 30,326 | 29,644 | ||||||
| Less: accumulated depreciation, depletion and amortization | (6,066 | ) | (5,362 | ) | ||||
| Total property and equipment, net | 24,260 | 24,282 | ||||||
| Long-term derivative assets | 2 | 1 | ||||||
| Deferred income tax assets | 626 | 589 | ||||||
| Other long-term assets | 933 | 1,025 | ||||||
| Total assets | $ | 27,934 | $ | 27,894 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 654 | $ | 777 | ||||
| Current maturities of long-term debt, net | — | 389 | ||||||
| Accrued interest | 68 | 100 | ||||||
| Derivative liabilities | 896 | 71 | ||||||
| Other current liabilities | 1,971 | 1,786 | ||||||
| Total current liabilities | 3,589 | 3,123 | ||||||
| Long-term debt, net | 5,243 | 5,291 | ||||||
| Long-term derivative liabilities | 129 | 68 | ||||||
| Asset retirement obligations, net of current portion | 506 | 499 | ||||||
| Long-term contract liabilities | 1,159 | 1,227 | ||||||
| Other long-term liabilities | 117 | 121 | ||||||
| Total liabilities | 10,743 | 10,329 | ||||||
| Contingencies and commitments | ||||||||
| Stockholders’ equity: | ||||||||
| Common stock, | 2 | 2 | ||||||
| Additional paid-in capital | 13,700 | 13,687 | ||||||
| Retained earnings | 3,489 | 3,876 | ||||||
| Total stockholders’ equity | 17,191 | 17,565 | ||||||
| Total liabilities and stockholders’ equity | $ | 27,934 | $ | 27,894 | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| ($ in millions, except per share data) | ||||||||
| Revenues and other: | ||||||||
| Natural gas, oil and NGL | $ | 2,300 | $ | 589 | ||||
| Marketing | 910 | 312 | ||||||
| Natural gas, oil and NGL derivatives | (1,014 | ) | 172 | |||||
| Gains on sales of assets | — | 8 | ||||||
| Total revenues and other | 2,196 | 1,081 | ||||||
| Operating expenses: | ||||||||
| Production | 147 | 59 | ||||||
| Gathering, processing and transportation | 563 | 173 | ||||||
| Severance and ad valorem taxes | 48 | 29 | ||||||
| Exploration | 7 | 2 | ||||||
| Marketing | 919 | 323 | ||||||
| General and administrative | 47 | 47 | ||||||
| Depreciation, depletion and amortization | 711 | 399 | ||||||
| Other operating expense, net | 22 | 17 | ||||||
| Total operating expenses | 2,464 | 1,049 | ||||||
| Income (loss) from operations | (268 | ) | 32 | |||||
| Other income (expense): | ||||||||
| Interest expense | (59 | ) | (19 | ) | ||||
| Other income, net | 8 | 20 | ||||||
| Total other income (expense) | (51 | ) | 1 | |||||
| Income (loss) before income taxes | (319 | ) | 33 | |||||
| Income tax expense (benefit) | (70 | ) | 7 | |||||
| Net income (loss) | $ | (249 | ) | $ | 26 | |||
| Earnings (loss) per common share: | ||||||||
| Basic | $ | (1.06 | ) | $ | 0.20 | |||
| Diluted | $ | (1.06 | ) | $ | 0.18 | |||
| Weighted average common shares outstanding (in thousands): | ||||||||
| Basic | 234,434 | 130,893 | ||||||
| Diluted | 234,434 | 141,752 | ||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
| Three Months Ended March 31, | ||||||||
| ($ in millions) | 2025 | 2024 | ||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ | (249 | ) | $ | 26 | |||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
| Depreciation, depletion and amortization | 711 | 399 | ||||||
| Deferred income tax expense (benefit) | (37 | ) | 7 | |||||
| Derivative (gains) losses, net | 1,014 | (172 | ) | |||||
| Cash receipts (payments) on derivative settlements, net | (45 | ) | 228 | |||||
| Share-based compensation | 9 | 9 | ||||||
| Gains on sales of assets | — | (8 | ) | |||||
| Contract amortization | (52 | ) | — | |||||
| Other | (4 | ) | (13 | ) | ||||
| Changes in assets and liabilities | (251 | ) | 76 | |||||
| Net cash provided by operating activities | 1,096 | 552 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures | (563 | ) | (421 | ) | ||||
| Receipts of deferred consideration | 60 | 60 | ||||||
| Contributions to investments | (4 | ) | (19 | ) | ||||
| Proceeds from divestitures of property and equipment | — | 6 | ||||||
| Net cash used in investing activities | (507 | ) | (374 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from Credit Facility | 725 | — | ||||||
| Payments on Credit Facility | (725 | ) | — | |||||
| Proceeds from warrant exercise | 21 | — | ||||||
| Cash paid to purchase debt | (436 | ) | — | |||||
| Cash paid for common stock dividends | (142 | ) | (77 | ) | ||||
| Net cash used in financing activities | (557 | ) | (77 | ) | ||||
| Net increase in cash, cash equivalents and restricted cash | 32 | 101 | ||||||
| Cash, cash equivalents and restricted cash, beginning of period | 395 | 1,153 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 427 | $ | 1,254 | ||||
| Cash and cash equivalents | $ | 349 | $ | 1,179 | ||||
| Restricted cash | 78 | 75 | ||||||
| Total cash, cash equivalents and restricted cash | $ | 427 | $ | 1,254 | ||||
| NATURAL GAS, OIL AND NGL PRODUCTION AND AVERAGE SALES PRICES (unaudited) |
| Three Months Ended March 31, 2025 | ||||||||||||||||
| Natural Gas | Oil | NGL | Total | |||||||||||||
| MMcf per day | $/Mcf | MBbl per day | $/Bbl | MBbl per day | $/Bbl | MMcfe per day | $/Mcfe | |||||||||
| Haynesville | 2,617 | 3.48 | — | — | — | — | 2,617 | 3.48 | ||||||||
| Northeast Appalachia | 2,668 | 3.75 | — | — | — | — | 2,668 | 3.75 | ||||||||
| Southwest Appalachia | 969 | 3.38 | 14 | 63.40 | 75 | 30.54 | 1,503 | 4.28 | ||||||||
| Total | 6,254 | 3.58 | 14 | 63.40 | 75 | 30.54 | 6,788 | 3.76 | ||||||||
| Average NYMEX Price | 3.65 | 71.42 | ||||||||||||||
| Average Realized Price (including realized derivatives) | 3.51 | 63.76 | 29.35 | 3.69 | ||||||||||||
| Three Months Ended March 31, 2024 | ||||||||||||||||
| Natural Gas | Oil | NGL | Total | |||||||||||||
| MMcf per day | $/Mcf | MBbl per day | $/Bbl | MBbl per day | $/Bbl | MMcfe per day | $/Mcfe | |||||||||
| Haynesville | 1,478 | 2.03 | — | — | — | — | 1,478 | 2.03 | ||||||||
| Northeast Appalachia | 1,720 | 2.03 | — | — | — | — | 1,720 | 2.03 | ||||||||
| Total | 3,198 | 2.03 | — | — | — | — | 3,198 | 2.03 | ||||||||
| Average NYMEX Price | 2.24 | — | ||||||||||||||
| Average Realized Price (including realized derivatives) | 2.85 | — | — | 2.85 | ||||||||||||
| CAPITAL EXPENDITURES ACCRUED (unaudited) |
| Three Months Ended March 31, | ||||||
| 2025 | 2024 | |||||
| ($ in millions) | ||||||
| Drilling and completion capital expenditures: | ||||||
| Haynesville | $ | 286 | $ | 195 | ||
| Northeast Appalachia | 103 | 105 | ||||
| Southwest Appalachia | 165 | — | ||||
| Total drilling and completion capital expenditures | 554 | 300 | ||||
| Non-drilling and completion - field | 56 | 35 | ||||
| Non-drilling and completion - corporate | 52 | 19 | ||||
| Total capital expenditures | $ | 662 | $ | 354 | ||
| NON-GAAP FINANCIAL MEASURES |
As a supplement to the financial results prepared in accordance with U.S. GAAP, Expand Energy’s quarterly earnings releases contain certain financial measures that are not prepared or presented in accordance with U.S. GAAP. These non-GAAP financial measures include Adjusted Net Income, Adjusted Diluted Earnings Per Common Share, Adjusted EBITDAX, Free Cash Flow, Adjusted Free Cash Flow and Net Debt. A reconciliation of each financial measure to its most directly comparable GAAP financial measure is included in the tables below. Management believes these adjusted financial measures are a meaningful adjunct to earnings and cash flows calculated in accordance with GAAP because (a) management uses these financial measures to evaluate the Company’s trends and performance, (b) these financial measures are comparable to estimates provided by securities analysts, and (c) items excluded generally are one-time items or items whose timing or amount cannot be reasonably estimated. Accordingly, any guidance provided by the Company generally excludes information regarding these types of items.
Expand Energy’s definitions of each non-GAAP measure presented herein are provided below. Because not all companies or securities analysts use identical calculations, Expand Energy’s non-GAAP measures may not be comparable to similarly titled measures of other companies or securities analysts.
Adjusted Net Income: Adjusted Net Income is defined as net income (loss) adjusted to exclude unrealized (gains) losses on natural gas and oil derivatives, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results, less a tax effect using applicable rates. Expand Energy believes that Adjusted Net Income facilitates comparisons of the Company’s period-over-period performance, by excluding the impact of items that, in the opinion of management, do not reflect Expand Energy’s core operating performance. Adjusted Net Income should not be considered an alternative to, or more meaningful than, net income (loss) as presented in accordance with GAAP.
Adjusted Diluted Earnings Per Common Share: Adjusted Diluted Earnings Per Common Share is defined as diluted earnings (loss) per common share adjusted to exclude the per diluted share amounts attributed to unrealized (gains) losses on natural gas and oil derivatives, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results, less a tax effect using applicable rates. Expand Energy believes that Adjusted Diluted Earnings Per Common Share facilitates comparisons of the Company’s period-over-period performance, by excluding the impact of items that, in the opinion of management, do not reflect Expand Energy’s core operating performance. Adjusted Diluted Earnings Per Common Share should not be considered an alternative to, or more meaningful than, earnings (loss) per common share as presented in accordance with GAAP.
Adjusted EBITDAX: Adjusted EBITDAX is defined as net income (loss) before interest expense, income tax expense (benefit), depreciation, depletion and amortization expense, exploration expense, unrealized (gains) losses on natural gas and oil derivatives, separation and other termination costs, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results. Adjusted EBITDAX is presented as it provides investors an indication of the Company's ability to internally fund exploration and development activities and service or incur debt. Adjusted EBITDAX should not be considered an alternative to, or more meaningful than, net income (loss) as presented in accordance with GAAP.
Free Cash Flow: Free Cash Flow is defined as net cash provided by operating activities less cash capital expenditures. Free Cash Flow is a liquidity measure that provides investors additional information regarding the Company’s ability to service or incur debt and return cash to shareholders. Free Cash Flow should not be considered an alternative to, or more meaningful than, net cash provided by (used in) operating activities, or any other measure of liquidity presented in accordance with GAAP.
Adjusted Free Cash Flow: Adjusted Free Cash Flow is defined as net cash provided by operating activities less cash capital expenditures and cash contributions to investments, adjusted to exclude certain items management believes affect the comparability of operating results. Adjusted Free Cash Flow is a liquidity measure that provides investors additional information regarding the Company’s ability to service or incur debt and return cash to shareholders and is used to determine Expand Energy’s payout of enhanced returns framework. Adjusted Free Cash Flow should not be considered an alternative to, or more meaningful than, net cash provided by (used in) operating activities, or any other measure of liquidity presented in accordance with GAAP.
Net Debt: Net Debt is defined as GAAP total debt excluding premiums, discounts, and deferred issuance costs less cash and cash equivalents. Net Debt is useful to investors as a widely understood measure of liquidity and leverage, but this measure should not be considered as an alternative to, or more meaningful than, total debt presented in accordance with GAAP.
| RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (unaudited) |
| Three Months Ended March 31, | ||||||||
| ($ in millions) | 2025 | 2024 | ||||||
| Net income (loss) (GAAP) | $ | (249 | ) | $ | 26 | |||
| Adjustments: | ||||||||
| Unrealized losses on natural gas and oil derivatives | 969 | 67 | ||||||
| Gains on sales of assets | — | (8 | ) | |||||
| Other operating expense, net | 26 | 19 | ||||||
| Contract amortization | (52 | ) | — | |||||
| Other | (4 | ) | (8 | ) | ||||
| Tax effect of adjustments(a) | (203 | ) | (16 | ) | ||||
| Adjusted net income (Non-GAAP) | $ | 487 | $ | 80 | ||||
| (a) | The three month periods ended March 31, 2025 and March 31, 2024 include a tax effect attributed to reconciling adjustments using a statutory rate of |
| RECONCILIATION OF EARNINGS (LOSS) PER COMMON SHARE TO ADJUSTED DILUTED EARNINGS PER COMMON SHARE (unaudited) |
| Three Months Ended March 31, | ||||||||
| ($/share) | 2025 | 2024 | ||||||
| Earnings (loss) per common share (GAAP) | $ | (1.06 | ) | $ | 0.20 | |||
| Effect of dilutive securities | — | (0.02 | ) | |||||
| Diluted earnings (loss) per common share (GAAP) | $ | (1.06 | ) | $ | 0.18 | |||
| Adjustments: | ||||||||
| Unrealized losses on natural gas and oil derivatives | 4.14 | 0.47 | ||||||
| Gains on sales of assets | — | (0.06 | ) | |||||
| Other operating expense, net | 0.11 | 0.14 | ||||||
| Contract amortization | (0.22 | ) | — | |||||
| Other | (0.02 | ) | (0.06 | ) | ||||
| Tax effect of adjustments(a) | (0.87 | ) | (0.11 | ) | ||||
| Effect of dilutive securities | (0.06 | ) | — | |||||
| Adjusted diluted earnings per common share (Non-GAAP) | $ | 2.02 | $ | 0.56 | ||||
| (a) | The three month periods ended March 31, 2025 and March 31, 2024 include a tax effect attributed to reconciling adjustments using a statutory rate of |
| RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDAX (unaudited) |
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| ($ in millions) | ||||||||
| Net income (loss) (GAAP) | $ | (249 | ) | $ | 26 | |||
| Adjustments: | ||||||||
| Interest expense | 59 | 19 | ||||||
| Income tax expense (benefit) | (70 | ) | 7 | |||||
| Depreciation, depletion and amortization | 711 | 399 | ||||||
| Exploration | 7 | 2 | ||||||
| Unrealized losses on natural gas and oil derivatives | 969 | 67 | ||||||
| Gains on sales of assets | — | (8 | ) | |||||
| Other operating expense, net | 26 | 19 | ||||||
| Contract amortization | (52 | ) | — | |||||
| Other | (6 | ) | (23 | ) | ||||
| Adjusted EBITDAX (Non-GAAP) | $ | 1,395 | $ | 508 | ||||
| RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW (unaudited) |
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| ($ in millions) | ||||||||
| Net cash provided by operating activities (GAAP) | $ | 1,096 | $ | 552 | ||||
| Cash capital expenditures | (563 | ) | (421 | ) | ||||
| Free cash flow (Non-GAAP) | 533 | 131 | ||||||
| Cash paid for merger expenses | 48 | — | ||||||
| Cash contributions to investments | (4 | ) | (19 | ) | ||||
| Adjusted free cash flow (Non-GAAP) | $ | 577 | $ | 112 | ||||
| RECONCILIATION OF TOTAL DEBT TO NET DEBT (unaudited) |
| ($ in millions) | March 31, 2025 | |||
| Total debt (GAAP) | $ | 5,243 | ||
| Premiums, discounts and issuance costs on debt | 7 | |||
| Principal amount of debt | 5,250 | |||
| Cash and cash equivalents | (349 | ) | ||
| Net debt (Non-GAAP) | $ | 4,901 | ||
FAQ
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