Chesapeake Energy(US:CHK)2024-10-29 20:03Financial Performance - Expand Energy reported a net cash provided by operating activities of $422 million for Q3 2024, with a net loss of $114 million, or $0.85 per fully diluted share; adjusted net income was $22 million, or $0.16 per share[2]. - Total revenues for Q3 2024 were $648 million, a decrease of 57.1% compared to $1,512 million in Q3 2023[25]. - Net loss for Q3 2024 was $114 million, compared to a net income of $70 million in Q3 2023, resulting in a basic loss per share of $0.85[25]. - Adjusted net income for the three months ended September 30, 2024, was $22 million, down from $155 million in the same period of 2023[42]. - Adjusted diluted earnings per common share for the three months ended September 30, 2024, was $0.16, compared to $1.09 for the same period in 2023[43]. - Adjusted EBITDAX for the three months ended September 30, 2024, was $365 million, down from $580 million in the same period of 2023[44]. - The company reported a net loss of $114 million for the three months ended September 30, 2024, compared to a net income of $70 million for the same period in 2023[42]. Production and Operations - The company produced approximately 2.65 billion cubic feet per day (bcf/d) of natural gas, which is 100% of its production[2]. - Natural gas production averaged 2,647 MMcf per day in Q3 2024, a decrease from 3,495 MMcf per day in Q3 2023[28]. - Total natural gas production reached 3,510 MMcf per day with an average realized price of $2.25 per Mcf[31]. - Expand Energy is currently operating 12 rigs and expects to reduce this to 10-12 rigs in 2025 based on market conditions[7][9]. - As of October 1, 2024, the combined company had 58 drilled but uncompleted (DUC) wells and 58 deferred turn in lines (TILs)[6]. Capital Expenditures and Investments - For 2025, capital expenditures are expected to be approximately $2.7 billion, yielding an estimated daily production of approximately 7 billion cubic feet equivalent (bcfe) per day[2][9]. - Capital expenditures for Q3 2024 were $298 million, down from $423 million in Q3 2023[26]. - Total capital expenditures for the nine months ended September 30, 2024, were $936 million, compared to $1,406 million for the same period in 2023[32]. - Cash capital expenditures for Q3 2024 were $298 million, down from $423 million in Q3 2023, indicating a reduction of 29.6%[45]. - Cash contributions to investments decreased to $26 million in Q3 2024 from $61 million in Q3 2023, a decline of 57.4%[45]. Debt and Equity - Total debt as of September 30, 2024, stood at $2,017 million, with net debt calculated at $906 million after accounting for cash and cash equivalents[46]. - Total stockholders' equity decreased to $10,188 million from $10,729 million year-over-year[24]. - The company upgraded its credit rating to Investment Grade (BBB-) from S&P and Fitch at the start of Q4 2024[2]. Cash Flow and Dividends - Cash flows from operating activities for Q3 2024 were $422 million, compared to $506 million in Q3 2023[26]. - Free cash flow (Non-GAAP) for Q3 2024 increased to $124 million, compared to $83 million in Q3 2023, marking a growth of 49.4%[45]. - Adjusted free cash flow (Non-GAAP) for Q3 2024 was $98 million, a significant improvement from a negative $35 million in Q3 2023[45]. - The company plans to pay a quarterly base dividend of $0.575 per common share in December 2024, marking the 15th consecutive quarter of dividend payments[2][10]. Strategic Initiatives - Expand Energy raised its annual synergy target by $100 million, now expecting approximately $225 million in 2025 and $500 million in annual synergies by year-end 2027[2][8]. - The company plans to focus on market expansion and new technology development in the upcoming quarters[25]. - The company plans to continue focusing on capital efficiency and operational improvements to enhance financial performance moving forward[34]. - Expand Energy's enhanced capital return framework includes a new $1 billion share repurchase authorization, effective January 1, 2025[2][12]. Market Conditions and Pricing - Average realized price for natural gas in Q3 2024 was $2.51 per Mcfe, compared to $2.64 in Q3 2023[27]. - Average NYMEX price for gas was $2.69 per Mcf, while the average realized price was $2.56 per Mcf[31]. - Unrealized losses on natural gas and oil derivatives amounted to $160 million for the three months ended September 30, 2024[44].