Expand Energy Corporation(EXE) - 2024 Q4 - Annual Results

Financial Performance - Net cash provided by operating activities was $382 million, with a net loss of$399 million or $1.72 per fully diluted share; adjusted net income was$131 million or $0.55 per share[6]. - Total revenues for Q4 2024 reached$2,001 million, a 2.7% increase compared to $1,948 million in Q4 2023[22]. - Net income for Q4 2024 was a loss of$399 million, compared to a net income of $569 million in Q4 2023, representing a significant decline[22]. - Adjusted net income for the three months ended December 31, 2024, was$131 million, compared to $185 million in the same period of 2023, reflecting a decline of 29.2$1.41, down from $4.91 in 2023, representing a decrease of 71.3$(154) million, compared to $91 million in Q4 2023, indicating a significant decline[43]. - Adjusted free cash flow (Non-GAAP) for Q4 2024 was$73 million, recovering from a loss of $(39) million in Q4 2023[43]. Production and Operations - Adjusted EBITDAX for the fourth quarter was$964 million, with net production of approximately 6.41 Bcfe/d, of which 91% was natural gas[6][7]. - The company aims to efficiently grow production from an exit rate of approximately 7.2 Bcfe/d at year-end 2025 to an average of approximately 7.5 Bcfe/d in 2026, depending on market conditions[8]. - Expand Energy operated an average of twelve rigs in the fourth quarter, drilling 44 wells and turning 41 wells in line[7]. - The company reported a total production of 6,412 MMcfe per day in Q4 2024, a 87.5% increase from 3,427 MMcfe per day in Q4 2023[24]. Capital Expenditures and Investments - Capital expenditures for Q4 2024 were $536 million, compared to$379 million in Q4 2023, indicating increased investment[23]. - Total capital expenditures for the year ended December 31, 2024, were $1,529 million, a decrease of 14.2$1,782 million in 2023[26]. - Total drilling and completion capital expenditures for the year ended December 31, 2024, were $1,257 million, down from$1,556 million in 2023, a decrease of 19.2%[26]. - Cash contributions to investments decreased from $(82) million in Q4 2023 to$(4) million in Q4 2024, indicating a reduction in investment activity[43]. Debt and Liquidity - Long-term debt increased to $5.291 billion as of December 31, 2024, up from$2.028 billion a year earlier[21]. - The company plans to allocate $500 million to net debt reduction in 2025, with additional free cash flow available for variable dividends and share repurchases[10]. - Total debt as of December 31, 2024, was$5,680 million, with net debt calculated at $5,369 million after accounting for cash and cash equivalents[44]. - The company’s net debt is defined as total debt excluding premiums, discounts, and deferred issuance costs less cash and cash equivalents, providing a measure of liquidity and leverage[34]. Dividends and Shareholder Returns - The quarterly base dividend of$0.575 per common share will be paid in March 2025, marking the 16th consecutive quarter of dividend payments[6][10]. - Expand Energy is increasing its expected annual synergy target for 2025 to approximately $400 million, with a total target of$500 million in annual synergies expected by year-end 2026[9]. Market Conditions and Pricing - Average realized price for natural gas in Q4 2024 was $2.91 per Mcf, up from$2.87 per Mcf in Q4 2023[24]. - The average NYMEX price for natural gas in Q4 2024 was $2.79 per Mcf, slightly lower than$2.88 per Mcf in Q4 2023[24]. - The average adjusted product prices for SEC proved reserves were $0.65 per Mcf of gas,$65.16 per barrel of oil, and $15.20 per barrel of NGL[46]. Asset and Reserve Information - Total assets increased to$27.894 billion as of December 31, 2024, compared to $14.376 billion as of December 31, 2023[21]. - Proved reserves as of December 31, 2024, were 20,800 Bcfe under SEC pricing, with a standardized measure of$7,531 million[45]. - The five-year strip pricing for proved reserves was 26,816 Bcfe, with a standardized measure of $22,120 million[45].