Expand Energy : 2026 First Quarter Financials

Published: 2026-04-28 16:23:33 ET EXE

Published on 04/28/2026 at 04:23 pm EDT

‌CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

($ in millions, except per share data) March 31, 2026

December 31, 2025

Assets

Current assets:

Cash and cash equivalents $ 2,220

$ 616

Restricted cash 85

Accounts receivable, net 1,290

1,599

Derivative assets 429

264

Other current assets 363

357

Total current assets 4,387

2,916

Property and equipment:

Natural gas and oil properties, successful efforts method

Proved natural gas and oil properties 27,336

26,606

Unproved properties 5,429

5,478

Other property and equipment 528

509

Total property and equipment 33,293

32,593

Less: accumulated depreciation, depletion and amortization (8,978)

(8,278)

Property and equipment held for sale, net -

Total property and equipment, net 24,315

24,355

Long-term derivative assets 127

Deferred income tax assets -

168

Other long-term assets 692

801

Total assets $ 29,521

$ 28,287

Liabilities and stockholders' equity

Current liabilities:

Accounts payable

881

753

Current maturities of long-term debt, net

875

Accrued interest

100

Derivative liabilities

Other current liabilities

2,135

2,045

Total current liabilities

3,950

2,901

Long-term debt, net

4,133

5,009

Long-term derivative liabilities

Asset retirement obligations, net of current portion

703

688

Long-term contract liabilities

911

975

Other long-term liabilities

278

135

Total liabilities

9,975

9,709

Contingencies and commitments

Stockholders' equity:

Common stock, $0.01 par value, 450,000,000 shares authorized: 240,085,572 and 239,249,874 shares issued

Additional paid-in capital

13,759

13,746

Retained earnings

5,785

4,830

Total stockholders' equity

19,546

18,578

Total liabilities and stockholders' equity

$ 29,521

$ 28,287

Three Months Ended March 31,

($ in millions, except per share data)

2026

2025

Revenues and other:

Natural gas, oil and NGL

$ 3,315

2,300

Marketing

1,212

910

Losses on derivatives

(129)

(1,014)

Losses on sales of assets

(1)

Total revenues and other

4,397

2,196

Operating expenses:

Production

185

147

Gathering, processing and transportation

690

563

Severance and ad valorem taxes

Exploration

Marketing

1,121

919

General and administrative

Separation and other termination costs

Depreciation, depletion and amortization

711

Other operating expense, net

Total operating expenses

2,866

2,464

Income (loss) from operations

1,531

(268)

Other income (expense):

Interest expense

(59)

Other income, net

Total other income (expense)

(42)

(51)

Income (loss) before income taxes

1,489

(319)

Income tax expense (benefit)

330

(70)

Net income (loss)

$ 1,159

(249)

Earnings (loss) per common share:

Basic

$ 4.83

(1.06)

Diluted

$ 4.81

(1.06)

Weighted average common shares outstanding (in thousands):

Basic

239,900

234,434

Diluted

240,759

234,434

Three Months Ended March 31,

($ in millions)

2026

2025

Cash flows from operating activities:

Net income (loss)

1,159

(249)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation, depletion and amortization

711

Deferred income tax expense (benefit)

319

(37)

Derivative losses, net

129

1,014

Cash payments on derivative settlements, net

(386)

(45)

Share-based compensation

Losses on sales of assets

Contract amortization

(30)

(52)

Other

(4)

Changes in assets and liabilities

454

(251)

Net cash provided by operating activities

2,402

1,096

Cash flows from investing activities:

Capital expenditures

(707)

(563)

Property acquisitions

(4)

Receipts of deferred consideration

Contributions to investments

(1)

(4)

Distributions from investments

Proceeds from divestitures of property and equipment

Net cash used in investing activities

(601)

(507)

Cash flows from financing activities:

Proceeds from credit facility

725

Payments on credit facility

(725)

Proceeds from warrant exercise

Cash paid to repurchase and retire common stock

(66)

Cash paid to purchase debt

(436)

Cash paid for common stock dividends

(141)

(142)

Net cash used in financing activities

(192)

(557)

Net increase in cash, cash equivalents and restricted cash

1,609

Cash, cash equivalents and restricted cash, beginning of period

696

395

Cash, cash equivalents and restricted cash, end of period

2,305

427

Cash and cash equivalents

$ 2,220

$ 349

Restricted cash

Total cash, cash equivalents and restricted cash

$ 2,305

$ 427

Three Months Ended March 31, 2026

Natural Gas

Oil

NGL

Total

MMcf

MBbl

MMcfe

per

day

$/Mcf

day

$/Bbl

day

$/Bbl

day

$/Mcfe

Haynesville

3,148

4.40

3,148

4.40

Northeast Appalachia

2,785

5.70

2,785

5.70

Southwest Appalachia

981

4.42

64.37

25.49

1,503

4.74

Total

6,914

4.92

64.37

25.49

7,436

4.95

Average NYMEX Price 5.04 71.93

Average Realized Price (including

realized derivatives) 4.28 64.77 25.49 4.35

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

63.40

30.54

1,503

4.28

Total

6,254

3.58

63.40

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,

($ in millions)

2026

2025

Drilling and completion capital expenditures:

Haynesville

296

286

Northeast Appalachia

116

103

Southwest Appalachia

156

165

Total drilling and completion capital expenditures

568

554

Non-drilling and completion - field

106

Non-drilling and completion - corporate

Total capital expenditures

716

662

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 derivatives, separation and other termination costs, (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 derivatives, separation and other termination costs, (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 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. 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.

1,159 $

(249)

Separation and other termination costs 9 -

Unrealized (gains) losses on derivatives (279) 969

Other operating expense, net 10 26

Losses on sales of assets 1 -

Other (12) (4)

Contract amortization (30) (52)

Tax effect of adjustments(a) 65 (203)

(a) The three month periods ended March 31, 2026 and March 31, 2025 include a tax effect attributed to the reconciling adjustments using a statutory rate of 22%.

($/share)

2026

2025

Earnings (loss) per common share (GAAP)

4.83

(1.06)

Effect of dilutive securities

(0.02)

Diluted earnings (loss) per common share (GAAP)

4.81

(1.06)

Adjustments:

Unrealized (gains) losses on derivatives

(1.16)

4.14

Separation and other termination costs

0.04

Losses on sales of assets

Other operating expense, net

0.04

0.11

Contract amortization

(0.12)

(0.22)

Other

(0.05)

(0.02)

Tax effect of adjustments(a)

0.27

(0.87)

Effect of dilutive securities

(0.06)

Adjusted diluted earnings per common share (Non-GAAP)

$ 3.83

2.02

(a) The three month periods ended March 31, 2026 and March 31, 2025 include a tax effect attributed to the reconciling adjustments using a statutory rate of 22%.

($ in millions)

2026

2025

Net income (loss) (GAAP)

1,159

(249)

Adjustments:

Interest expense

Income tax expense (benefit)

330

(70)

Depreciation, depletion and amortization

711

Exploration

Unrealized (gains) losses on derivatives

(279)

969

Separation and other termination costs

Losses on sales of assets

Other operating expense, net

Contract amortization

(30)

(52)

Other

(16)

(6)

Adjusted EBITDAX (Non-GAAP)

$ 1,968

1,395

($ in millions)

2026

2025

Net cash provided by operating activities (GAAP)

2,402

1,096

Cash capital expenditures

(707)

(563)

Free cash flow (Non-GAAP)

1,695

533

Cash distributions from investments

Cash contributions to investments

(1)

(4)

Cash paid for merger expenses

Adjusted free cash flow (Non-GAAP)

$ 1,704

577

($ in millions) March 31, 2026 December 31, 2025

Total debt (GAAP)

5,008

5,009

Premiums, discounts and issuance costs on debt

Principal amount of debt

5,025

Cash and cash equivalents

(2,220)

(616)

Net debt (Non-GAAP)

$ 2,805

4,409

Disclaimer

Expand Energy Corporation published this content on April 28, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 28, 2026 at 20:21 UTC.