Expand Energy : 2026 First Quarter Earnings Presentation

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

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

1Q 2026 Earnings

APRIL 28, 202c

Operational and Financial Highlights

Largest domestic natural gas producer: ~7.4 Bcfe/d

~$2.0bn of Adjusted EBITDAX(1)

~$716mm of capex

Reaffirmed 2026 guide:

~7.5 Bcfe/d; ~$2.85bn capex

Inclusive of ~$75mm Western Haynesville

appraisal spend

Record FCF of ~$1.7bn(1,2)

generated in 1Q26

Benefit of productive capacity activation in

peak demand periods

Reported $2.8bn net debt(1)

Gross debt reduction of ~$1.3bn YTD 2026, total gross debt reduction $2.5bn since merger close

Returned ~$291mm

to shareholders YTD 2026

$150mm of buybacks year-to-date, complementing base dividend and debt reduction

Executed 1.15 MTPA LNG offtake

with Delfin FLNG Vessel 1

Expected to be in service by 2031

(1) Adjusted EBITDAX, Free Cash Flow and Net Debt are non-GAAP financial measures, see Appendix for more information and reconciliation to the most directly comparable GAAP financial measure.

Attractive, Connected Portfolio

NORTHEAST APPALACHIA

~704,000 net acres

>1,500 gross locations FY2cE Prod: ~2,c75 MMcfe/d

Superior Portfolio Characteristics

Scale: Largest natural gas producer in North America with ~2.0mm net acres,

~7.5 Bcfe/d in 2026

Flexibility: Highly complementary asset base offers capital allocation flexibility

Growth: Differentiated ability to accretively grow volumes (when supply is needed)

Location: Geographically diverse portfolio co-located with highest growth demand centers

Longevity: High-quality inventory supporting returns for decades (20+ years(1))

Connectivity: Interconnected transportation portfolio links assets to premium markets

SOUTHWEST APPALACHIA

~5S2,000 net acres

>1,500 gross locations FY2cE Prod: ~1,c25 MMcfe/d

HAYNESVILLE

~745,000 net acres

>2,000 gross locations FY2cE Prod: ~3,200 MMcfe/d

Net acres and gross locations as of 12/31/2025. (1) >5,000 gross locations divided by ~225 annual TILs.

2026 Production Outlook

Northeast Appalachia Production

(MMcfe/d)

2,610 2,785

~ 2,650 ~ 2,675

4Q25A

1Q26A

2Q26E

FY26E

Rig Count

Crew Count

4Q25A

1Q26A

2Q26E

FY26E

Southwest Appalachia Production

$Q25A

1Q26A

2Q26E

~ 1,625

1,597

1,503

1 - 2

2Q26E

1Q26A

4Q25A

FY26E

Rig Count

Crew Count

(MMcfe/d)

Haynesville Production

4Q25A

1Q26A

2Q26E

FY26E

(MMcfe/d)

3,193 3,148

~ 3,175 ~ 3,200

4Q25A

1Q26A

2Q26E

FY26E

Rig Count

Crew Count

Appalachia assets delivered 98% uptime during Winter Storm Fern, while ice accumulation impacted Haynesville volumes

Production cadence expected to align with demand; guidance contemplates seasonal curtailments in 2Q26

FY26E

Positive step-change in YoY Haynesville capital efficiency and productivity (projecting ~900 Mcfe/ft for FY26)

Positioned for Growing Demand

1Ǫ 202c EARNINGS

The Backbone of Lower Carbon Energy

Natural Gas is Foundational to Global Energy Supply

Secure

Shifting reliance to assets with decades of proven reserves means supply you can count on

Dispatchable

Best positioned energy source to provide the flexibility and fast timelines of hyperscaler customers

Reliable

U.S. natural gas provides

customers in global markets

a reliable LNG source

A Historic Wave of Structural Domestic Demand Growth is Underway

2 0 3 0 2 0 4 0

data center timeline

affordable option to support

ted

ulti-gigawatt loads on accelera

7 - 10 Bcf/d

4 - 6 Bcf/d

Only dispatchable, scalable and

POWER

Appalachia & U.S. Gulf Coast

INDUSTRIAL

U.S. Gulf Coast

2 - 3 Bcf/d 3 - 5 Bcf/d

Modern manufacturing expansion, petrochemical and refining upgrades and renewed industrial investment

global energy demand

wer carbon supply to meet surgin

LNG provides reliable, flexible,

18 - 22 Bcf/d

10 - 12 Bcf/d

LNG

U.S. Gulf Coast

DEMAND GROWTH

from 2025

New era of Demand-Pull replaces historical Supply-Push dynamics across the U.S.

Note: Demand growth numbers for 2030 and 2040 are compared to a 2025 baseline of ~115 Bcf/d.

Sources: SCP Global, Bloomberg NEF, Wood Mackenzie, Enverus, Grid Status, East Daley, Arbo, RBN, PointLogic, IIR, Webber Research, PJM Interconnect, MISO, ERCOT, company public disclosures and internal estimates.

Scalable, Affordable Energy Underpins Electrification

Appalachia s Gulf Coast Demand Growth(1) by 2030

(Bcf/d)

Industrial

Power

0 2 4 6

APPALACHIA:

The power generation hub

Accelerating AI-driven power demand and electrification

Natural gas backstops renewable intermittency

and supports grid stability

Expand can supply low-cost natural gas to meet growing in-basin demand

EXE Acreage

Proposed Industrial Facility Proposed Power Facility

U.S. GULF COAST:

The epicenter of demand growth

Industrial customers and growing power generation competing with growing LNG demand

Consumer competition creates premium market

dynamics, focus on securing long-term supply

Expand is the basin cost-leader with deepest inventory and ability to grow when needed

Mapped power facilities sourced from IIR Energy and include announced data center and gas-fired power plants through 2030.

(1) EXE internal demand growth outlook for Northeast and Gulf Coast regions based on SCP Global Commodity Insights, Natural Gas Intelligence, Argus Media, EIA, company press releases and internal estimates.

9 1Q 2026 Earnings

U.S. Gulf Coast: Where Global LNG Supply Begins

The critical energy corridor

Growing global call on natural gas will be met predominantly with new North American LNG export capacity

Resulting domestic feedgas demand estimated

to increase 10 - 12 Bcf/d by 2030

Infrastructure-friendly Gulf Coast region ensures local supply reaches new demand

Expand will leverage its position as the largest Haynesville producer to attract premium prices and enhance margins

Katy

HSC

T E X A S

Gillis

Perryville

1.15 MTPA LNG FOB offtake for 20 years

In-service expected 2031

Subject to final investment decision

Delfin FLNG Vessel 1 SPA

Henry Hub

EXE Haynesville Acreage

Market Hub

L O U I S I A N A

Expected LNG Feedgas Capacity

(Bcf)

2025

Online in 2026

Online in 2027

Online in 2028+

Expand is built to serve LNG demand

Agua Dulce

Delfin

0 10 20 30

Sources: EIA, public reports and internal estimates. Facilities include Corpus Christi 3 expansion, Golden Pass Phase 1 C 2, Port Arthur Phase 1 C 2, Calcasieu Pass 2, Rio Grande, Louisiana LNG, Sabine Pass expansion, Plaquemines expansion and account for efficiency gains.

10 1Q 2026 Earnings

Global LNG Demand Growing >50% from 2025 to 2040

2025 Demand = 57 Bcf/d

35 2040 Demand = ~90 Bcf/d

30 +33 Bcf/d

Price-sensitive demand regions in Asia expected

of demand growth

to contribute additional 3 - C Bcf/d of demand at <$8.00/MMBtu JKM, supporting price resilience

Growth to 2040

2025 Demand

LNG Demand (Bcf/d)

Elastic Demand

-5

China Europe SE Asia Rest of World India Japan South Korea South America

Sources: Wood Mackenzie, Poten C Partners, Rystad Energy, SCP Global, Timera Energy and internal models.

11 1Q 2026 Earnings

Increased Volatility Creates Opportunity

Russia/Ukraine conflict and Freeport explosion

Historic Henry Hub Price

(:/MMBtu)

60-Day Avg Trailing Trading Range 60-Day Avg Trailing Midpoint

U.S. natural gas supply and demand have grown >40% during the last decade, while working capacity of storage has stayed flat

$10

Polar vortex winter

Shale revolution inflection

Post-COVID demand rebound

Winter Storm Fern

LNG export ramp-up

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

As prices are increasingly susceptible to extremes, Expand has positioned to monetize volatility

Sources: FactSet and EIA.

Integrated Strategy to Grow Cash Flow

Expand's Opportunity: Increase the value of every molecule

~$500mm

Incremental FCF (~$0.20/Mcfe)

STRATEGY

OPPORTUNITY

PROGRESS TO DATE

FUTURE STATE

Facilitating s Capturing New Demand

3 - 5 years

(back-end weighted)

LNG SPAs

Industrial customer expansion

Bundled power

solutions

Delfin FLNG SPA

Lake Charles Methanol SPA

Diverse domestic and international portfolio

Increase end-use customers across power, industrial and LNG

Infrastructure Investment Partnerships

Reaching Premium Markets

Underway

1 - 5 years

(ratable expansion)

Downstream market access

Structured products with embedded flexibility

Flow optimization

~2 Bcf/d sales to LNG facilities

Added ~200 MMcf/d transport to Southeast markets in 1Q26

Dynamic capacity management

New capacity agreements

Premium market indexation exposure

Monetizing Volatility

Underway

1 - 5 years

(ratable expansion)

Physical storage

Hedging optimization

Productive capacity

~5 Bcf of Gulf Coast gas storage

Hedging to manage downside risk

Integrated supply, logistics, storage and sales portfolio

Dynamic risk management

Strengthening Resilient Financial Foundation

1Ǫ 202c EARNINGS

Balancing Debt Reduction and Shareholder Returns

Debt Maturity Profile (BBB-, Baa3, BBB-)

(:mm)(3)

EXE

RBL Capacity ~5.15%

5.375%

4.75%

$1,150

5.70%

Callable debt

$638

$750

$1,200

$3,500

Investment Grade balance sheet creates more capacity at cycle-lows

Redeemed ~$1.3bn of gross debt at par YTD 2026

Reported quarter-end Net Debt(1) of $2.8bn, down

$1.6bn from YE 2025

Peer leading leverage ratio of ~0.5x

(2)

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

Variable Dividend

Share Repurchase Gross Debt Reduction Base Dividend

Gross Debt Reduction and Shareholder Returns

(:mm)

$211

$100

$150

$661

$1,287

$554

FY25

$141

YTD 2026 (3)

Complementing debt reduction with meaningful shareholder returns

Strong balance sheet facilitates more consistent shareholder returns through-cycle

Declared 1Q26 base dividend of $0.575/share to be paid in June 2026; $2.30/share annually

Repurchased $150mm in shares through April 24, 2026

Net Debt is a non-GAAP financial measure, see Appendix for more information and reconciliation to the most directly comparable GAAP financial measure.

Net Debt to trailing 12-month Adjusted EBITDAX. Adjusted EBITDAX is a non-GAAP financial measure, see Appendix for more information and reconciliation to the most directly comparable GAAP financial measure.

As of 4/24/2026.

Hedge Strategy Preserves Upside and Provides Downside Protection

Hedged Natural Gas Volumes

4Q Earnings (Bcf)

437

445

393

349

211

147

27 51

269

2Q26 3Q26 4Q26 1Q27 2Q27 3Q27 4Q27 1Q28

Current Hedge Book Supports Near-Term Realizations and Preserves Upside

Ceiling and Floor(1)

($/MMbtu)

$4.21 $4.27

$4.65

$4.79

$4.06

$4.09 $3.97 $4.03

$3.89

$4.40

$4.19

$3.59

$2.88

$3.64

$3.16

$3.68

$3.77

$3.85

$3.65

$3.08

$3.73 $3.79

$3.73

$3.40

2Q26 3Q26 4Q26 1Q27 2Q27 3Q27 4Q27 1Q28

CC% hedged in 202C

Built for Long-Term Value

1Ǫ 202c EARNINGS

Built to Meet Unprecedented Demand Growth

HAYNESVILLE

+1 Bcf/d

MIDWEST DEMAND

Bcf/d

SW APP

2025 Demand Bcf/d 2030 Demand Gain Bcf/d

NE APP

SOUTHEAST DEMAND

+4 Bcf/d

NORTHEAST DEMAND

Bcf/d

+2 Bcf/d

Premier assets in Appalachia and Haynesville

Access to ~90% of expected demand growth

Unprecedented global LNG expansion

AI-driven power loads

Industrial/power generation along U.S. Gulf Coast

Proven operational execution

LNG supplier of choice

TEXAS DEMAND(1)

+2 Bcf/d

+8 Bcf/d

Bcf/d

+11 Bcf/d

14 +1 Bcf/d

EXE is positioned to enhance margins and deliver long-term value

FLORIDA DEMAND

EXPORTS TO MEXICO

U.S. GULF COAST

DEMAND(1)

+27 Bcf/d

C0 Bcf/d

GLOBAL LNG DEMAND

EXE estimates based on EIA data, FERC filings and public statements.

(1) Texas includes LNG west of Sabine River Corridor and estimated power and industrial demand in Texas; Sabine Pass, Golden Pass and Port Arthur LNG included in U.S. Gulf Coast, along with LNG and estimated power and industrial demand in Louisiana.

Expanding Returns, Expanding Opportunities

Premium rock, returns, runway with access to premium markets

Most efficient operator with proven track record of delivering returns to shareholders

Investment Grade balance sheet provides strategic through-cycle advantages

Connecting affordable, reliable and lower carbon energy to markets in need

Appendix

1Ǫ 202c EARNINGS

Management's Guidance as of April 28, 2026

Bold / Italicized = updated guidance range

Production (MMcfe/d)

1Q2CA

2Q2CE

202CE

Total Production

7,436

7,400 - 7,500

7,400 - 7,600

Haynesville

3,148

~3,175

~3,200

Northeast Appalachia

2,785

~2,650

~2,675

Southwest Appalachia

1,503

~1,625

Capital Expenditures ($mm)

1Q2CA

2Q2CE

202CE

Total DCC

$568

$600 - $650

$2,250 - $2,350

Haynesville

52%

~51%

~52%

Northeast Appalachia

20%

~18%

~23%

Southwest Appalachia

28%

~30%

~25%

Other Capex (Field)(1)

$106

$125 - $150

$350 - $450

Other Capex (Corporate)(2)

$42

$45

~$150

Total Capital Expenditures

$716

$770 - $845

$2,750 - $2,950

Operating Costs (per Mcfe of Projected Production)

1Q2CA

202CE

Production Expense

$0.28

$0.23 - $0.28

Gathering, Processing and Transportation (GPCT)

$1.07

$1.01 - $1.13

GPCT Expense

$1.03

$0.95 - $1.05

GPCT FMV Liability (3)

$0.04

$0.06 - $0.08

Severance and Ad Valorem Taxes

$0.09

$0.08 - $0.10

General and Administrative

$0.09

$0.07 - $0.10

Depreciation, Depletion and Amortization

$1.06

$1.10 - $1.15

Corporate Expenses ($mm)

1Q2CA

202CE

Interest Expense

$59

:180 - :200

Cash Income Tax Ranges at Flat Prices

$3.50

$4.00

$0 - $25

$4.50

$25 - $50

Basis Differentials (excluding hedges)

1Q2CA

202CE

Estimated (E) Basis Deduct to NYMEX Prices, based on 4/21/2026 Strip Prices:

Natural Gas ($/Mcf)

($0.12)

($0.30) - ($0.40)

Oil ($/Bbl)

($7.56)

($9.00) - ($11.00)

NGL (:/Bbl, realized price)

:25.49

:22 - :2c

Other Capex (Field) includes Leasehold and Workover expenses.

Other Capex (Corporate) includes PPCE, Capitalized GCA and Interest expenses.

GPCT fair market liability related to the amortization of the $150mm - $200mm net liability for out-of-market contracts assumed in the Southwestern Merger.

1Q26 EXE Business Unit Results

Haynesville

Northeast Appalachia

Southwest Appalachia

Production (MMcfe/d)

3,148

2,785

1,503

Production Expense ($/Mcfe)

$0.33

$0.19

$0.34

Differential to NYMEX ($/Mcf)

$(0.64)

$0.66

$(0.62)

GPCT ($/Mcfe)

$0.84

$1.05

$1.38

Rigs

Spuds (by zone)

Haynesville 10

Bossier 12

Lower 4

Upper(1) 17

Marcellus 12

Utica 5

TILs (by zone)

Haynesville 19

Bossier 6

Lower 9

Upper(1) 8

Marcellus 8

Utica 0

DCC Capex ($mm)

$296

$116

$156

Total Capital ($mm)

$359

$141

$216

Haynesville, Northeast and Southwest Appalachia Sales Points

L O U I S I A N A

T E X A S

N E W Y O R K

P E N N S Y L V A N I A

P E N N SY L V A N I A

O H I O

W E S T V I R G I N I A

Haynesville Sales Points

DEDUCT FROM NYMEX ($)(1)

Historical Avg

Current

CGML ($0.25)

TGT ($0.22)

TETCO WLA ($0.10)

TETCO WLA ($0.18)

Northeast Appalachia Sales Points

DEDUCT FROM NYMEX ($)(1)

Historical Avg

Current

TETCO M3

($0.16)

TETCO M3

+$0.43

Leidy

($0.66)

Leidy

($0.62)

Eastern Gas

($0.73)

Eastern Gas

($0.79)

TGP 300L

($0.74)

TGP 300L

($0.72)

Southwest Appalachia Sales Points

DEDUCT FROM NYMEX ($)(1)

Historical Avg

Current

TCO

($0.58)

TCO

($0.59)

TrunklineZ1A

($0.29)

TrunklineZ1A

($0.30)

CGML

($0.25)

CGML

($0.25)

CG Onshore

($0.11)

CG Onshore

($0.09)

Rex Zone 3

($0.28)

Rex Zone 3

($0.30)

HAYNESVILLE TOTAL PRODUCTION(2)

CGML/TGT 45%

TETCO WLA/NYMEX/Other 55%

NE APP TOTAL PRODUCTION(2)

In Basin

55%

Out of Basin

45%

Leidy

30%

TETCO M3

25%

Eastern Gas

20%

NYMEX

20%

TGP 300L

SW APP TOTAL PRODUCTION(2)

TCO

40%

TrunklineZ1A

25%

CGML

15%

CG Onshore

10%

Rex Zone 3

10%

Historical prices based on NYMEX contract settlement for January 2024 - December 2025; current prices based on NYMEX settled and future prices for January 2026 - December 2027, strip as of 4/21/2026.

Reducing Risk, Protecting Returns Through Hedge Program

NATURAL GAS

ESTIMATED NYMEX GAS SETTLEMENT ($mm)

Date

SWAPS

COSTLESS COLLARS

THREE-WAY COLLARS

Date

$2.00

NYMEX

$3.00

NYMEX

$4.00

NYMEX

$5.00

NYMEX

Volume Bcf

Price

$/Mcf

Volume Bcf

Bought

Put

$/Mcf

Sold Call

$/Mcf

Volume Bcf

Bought

Put

$/Mcf

Sold Call

$/Mcf

Sold Put

$/Mcf

1Q 2026

100.8

3.98

307.8

3.50

5.09

13.3

3.92

4.73

2.67

1Q 2026

(287)

2Q 2026

133.4

3.88

213.9

3.43

4.42

89.2

3.52

4.23

2.48

2Q 2026

499

243

(179)

3Q 2026

145.4

3.85

194.8

3.47

4.44

104.9

3.68

4.54

2.64

3Q 2026

653

286

(25)

(344)

4Q 2026

120.8

3.95

162.5

3.57

4.90

109.3

3.88

5.04

2.75

4Q 2026

611

304

(4)

(198)

FY 202C

500.4

$3.91

878.9

$3.49

$4.75

31C.7

$3.71

$4.C3

$2.C4

FY 202C

$1,47C

$54C

($2C2)

($1,008)

1Q 2027

90.1

3.96

160.9

3.75

5.14

110.3

3.91

5.06

2.82

1Q 2027

582

307

(1)

(152)

2Q 2027

134.5

3.80

68.7

3.61

4.55

94.6

3.53

4.23

2.59

2Q 2027

440

195

(31)

(273)

3Q 2027

135.9

3.80

26.2

3.68

4.31

64.4

3.63

4.17

2.62

3Q 2027

354

166

(28)

(234)

4Q 2027

82.7

3.82

24.4

3.68

4.27

58.3

3.66

4.20

2.64

4Q 2027

251

122

(16)

(160)

FY 2027

443.2

$3.84

280.2

$3.70

$4.84

327.C

$3.C8

$4.45

$2.C5

FY 2027

$1,C27

$790

($7C)

($819)

1Q 2028

31.9

3.88

6.4

3.75

4.91

40.0

3.72

4.74

2.76

1Q 2028

109

(4)

(47)

2Q 2028

10.9

3.51

4.62

2.50

2Q 2028

(4)

3Q 2028

11.0

3.51

4.62

2.50

3Q 2028

(4)

4Q 2028

11.0

3.51

4.62

2.50

4Q 2028

(4)

FY 2028

31.9

$3.88

C.4

$3.75

$4.91

73.0

$3.C2

$4.C9

$2.C4

FY 2028

$142

$79

($4)

($59)

Reducing Risk, Protecting Returns Through Hedge Program

NATURAL GAS LIQUIDS

ESTIMATED NGL SETTLEMENT ($mm)

Date

C3 SWAPS

Date

$0.25

NYMEX

$0.50

NYMEX

$1.00

NYMEX

$1.50

NYMEX

Volume

MBbl

Price

$/Gal

1Q 2026

2Q 2026

1,183

0.75

2Q 2026

(12)

(37)

3Q 2026

1,196

0.75

3Q 2026

(12)

(38)

4Q 2026

1,196

0.75

4Q 2026

(12)

(38)

FY 202C

3,575

$0.75

FY 202C

$75

$39

($3C)

($113)

CRUDE OIL

ESTIMATED NYMEX WTI SETTLEMENT ($mm)

Date

COSTLESS COLLARS

THREE-WAY COLLARS

Date

$60.00

NYMEX

$70.00

NYMEX

$80.00

NYMEX

$90.00

NYMEX

Volume

MBbl

Bought Put

$/Bbl

Sold Call

$/Bbl

Volume

MBbl

Bought Put

$/Bbl

Sold Call

$/Bbl

Sold Put

$/Bbl

1Q 2026

225.0

70.00

83.32

60.00

1Q 2026

2Q 2026

682.5

72.33

88.82

2Q 2026

(2)

3Q 2026

690.0

72.33

88.82

3Q 2026

(2)

4Q 2026

690.0

72.33

88.82

4Q 2026

(2)

FY 202C

20C2.5

$72.33

$88.82

225.0

$70.00

$83.32

$C0.00

FY 202C

$27

($5)

Hedged Financial Basis

HAYNESVILLE

NORTHEAST APPALACHIA

Date

CGT ML

TETCO WLA

TGT Z1

TETCO M3

LEIDY

EASTERN GAS

Volume Bcf

Avg. Price

$/Mcf

Volume Bcf

Avg. Price

$/Mcf

Volume

Bcf

Avg. Price

$/Mcf

Volume

Bcf

Avg. Price

$/Mcf

Volume

Bcf

Avg. Price

$/Mcf

Volume

Bcf

Avg. Price

$/Mcf

1Q 2026

1.4

0.11

14.9

(0.22)

36.2

0.47

23.0

(0.73)

13.5

(0.86)

2Q 2026

4.0

(0.31)

2.0

0.02

1.4

(0.27)

40.7

(0.70)

23.0

(1.11)

18.0

(1.07)

3Q 2026

5.5

(0.32)

2.3

0.00

1.4

(0.27)

41.2

(0.70)

23.2

(1.11)

18.2

(1.07)

4Q 2026

1.9

(0.38)

1.7

0.06

0.5

(0.27)

28.2

(0.25)

17.0

(0.94)

12.8

(1.00)

FY 202C

11.3

($0.32)

7.3

$0.04

18.1

($0.23)

14C.3

($0.32)

8C.1

($0.97)

C2.5

($1.01)

1Q 2027

3.6

(0.29)

6.8

0.98

10.8

(0.76)

9.0

(0.85)

Hedge position as of 4/21/2026.

Non-GAAP Financial Measures

As a supplement to the financial results prepared in accordance with U.S. GAAP, Expand Energy's quarterly earnings presentations contain certain financial measures that are not prepared or presented in accordance with U.S. GAAP. These non-GAAP financial measures include Adjusted EBITDAX, Free Cash Flow, Adjusted Free Cash Flow, Net Debt and Total Capitalization.

A reconciliation of each financial measure to its most directly comparable GAAP financial measure is included in the following tables. 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. Due to the forward-looking nature of projected Adjusted EBITDAX, projected Free Cash Flow and projected Adjusted Free Cash Flow used herein, management cannot reliably predict certain of the necessary components of the most directly comparable forward-looking GAAP measures. Accordingly, the Company is unable to present a quantitative reconciliation of such forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable effort. Amounts excluded from these non-GAAP measures in future periods could be significant.

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 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) or net cash provided by (used in) operating activities 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.

Total Capitalization: Total Capitalization is defined as Net Debt plus total stockholders' equity and is used in the Net Debt to Capitalization ratio.

Reconciliation of Net Income (Loss) to Adjusted EBITDAX (Unaudited)

Three Months Ended

March 31, 202C

Three Months Ended

December 31, 2025

Three Months Ended

September 30, 2025

Three Months Ended

June 30, 2025

Trailing Twelve Months

Three Months Ended

March 31, 2025

(: in millions)

Net Income (Loss) (GAAP)

$ 1,159

$ 553

$ 547

$ 9C8

$ 3,227

$ (249)

Adjustments:

Interest expense

235

Income tax expense (benefit)

330

134

139

260

863

(70)

Depreciation, depletion and amortization

711

759

741

769

2,980

711

Exploration

Unrealized (gains) losses on derivatives

(279)

(179)

(309)

(842)

(1,609)

969

Separation and other termination costs

(Gains) losses on sales of assets

(4)

Other operating expense (income), net

(40)

Impairments

Gains on purchases, exchanges or extinguishments of debt

(1)

(3)

(4)

Contract amortization

(30)

(32)

(47)

(72)

(181)

(52)

Other

(16)

(1)

(14)

(12)

(43)

(6)

Adjusted EBITDAX (Non-GAAP)

$ 1,9C8

$ 1,425

$ 1,082

$ 1,17C

$ 5,C51

$ 1,395

Reconciliation of Total Debt to Total Capitalization (Unaudited)

Three Months Ended

March 31, 202C

Three Months Ended

March 31, 2025

March 31, 202C

December 31, 2025

(: in millions)

Net Cash Provided by Operating Activities (GAAP)

$ 2,402

$ 1,09C

Total Debt (GAAP)

$ 5,008

$ 5,009

Cash capital expenditures

(707)

(563)

Premiums, discounts and issuance costs on debt

Free Cash Flow (Non-GAAP)

1,C95

533

Principal Amount of Debt

5,025

Cash distributions from investments

Cash and cash equivalents

(2,220)

(616)

Cash contributions to investments

(1)

(4)

Net Debt (Non-GAAP)

2,805

4,409

Cash paid for merger expenses

Total stockholders' equity

19,546

18,578

Adjusted Free Cash Flow (Non-GAAP)

$ 1,704

$ 577

Total Capitalization (Non-GAAP)

$ 22,351

$ 22,987

Reconciliation of Net Cash Provided by Operating

Three Months Ended

March 31, 202C

Three Months Ended

March 31, 2025

(: in millions)

Net Cash Provided by Operating Activities (GAAP)

2,402

1,09C

Changes in assets and liabilities

(454)

251

Interest expense

Current income tax expense (benefit)

(33)

Share-based compensation

(10)

(9)

Other

(40)

Adjusted EBITDAX (Non-GAAP)

1,9C8

1,395

Activities to Adjusted EBITDAX (Unaudited)

Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow (Unaudited)

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.