Chesapeake Energy(US:CHK)2026-02-18 12:31Merger and Acquisitions - On October 1, 2024, the company completed the Southwestern Merger, issuing approximately 95.7 million shares valued at about $7.9 billion to Southwestern's shareholders[262]. - The company assumed approximately $3.7 billion of Southwestern's senior notes as part of the merger, with Southwestern's existing credit facility extinguished for approximately $585 million[281]. - The Southwestern Merger was completed on October 1, 2024, with approximately $3.7 billion of Southwestern's senior notes assumed and a credit facility extinguished for approximately $585 million[281][291]. Financial Performance - Cash provided by operating activities increased to $4.58 billion in 2025 from $1.57 billion in 2024, driven by higher sales volumes and natural gas prices[284]. - Total natural gas, oil, and NGL sales rose to $8.48 billion in 2025, an increase of $5.51 billion compared to $2.97 billion in 2024, primarily due to increased volumes from the Southwestern Merger and higher average natural gas prices[299]. - Capital expenditures for 2025 were $2.74 billion, up from $1.56 billion in 2024, reflecting increased drilling and completion activities[288]. - Cash paid for common stock dividends was $765 million in 2025, compared to $388 million in 2024[296]. - The company repurchased 0.9 million shares for $100 million in 2025, with no repurchases in 2024[295]. - The average realized price for natural gas in 2025 was $3.16 per Mcf, compared to $2.75 per Mcf in 2024[298]. - Total gains on natural gas derivatives reached $542 million in 2025, a significant recovery from a loss of $32 million in 2024[303]. - Marketing revenues surged to $3.163 billion in 2025, up from $1.290 billion in 2024, driven by increased production volumes and higher natural gas prices[304]. Expenses and Liabilities - Production expenses increased to $635 million in 2025 from $316 million in 2024, largely due to the Southwestern Merger and increased volumes[300]. - Gathering, processing, and transportation expenses rose to $2.38 billion in 2025, up from $1.04 billion in 2024, attributed to the Southwestern Merger and increased rates[301]. - Severance and ad valorem taxes increased by $96 million in 2025 compared to 2024, primarily due to a $103 million increase from the Southwestern Merger[302]. - Interest expense on debt increased to $295 million in 2025 from $181 million in 2024, mainly due to the assumption of Southwestern's Senior Notes[310]. - Income tax expense for 2025 was recorded at $463 million, compared to a benefit of $127 million in 2024[311]. - Depreciation, depletion, and amortization increased to $2.980 billion in 2025 from $1.729 billion in 2024, primarily related to the Southwestern Merger[308]. Future Commitments and Investments - The estimated gross undiscounted future commitments under various agreements were approximately $9.6 billion as of December 31, 2025[279]. - The company plans to invest between $2.75 billion and $2.95 billion in capital expenditures for the year ending December 31, 2026, with expectations to complete 205 to 235 gross wells[282]. - The company entered into an Amended and Restated Credit Agreement on September 30, 2025, increasing the 2025 Credit Facility's commitments from $2.5 billion to $3.5 billion[265]. - The 2025 Credit Facility provides for aggregate commitments of $3.5 billion, with $3.5 billion available for borrowings as of December 31, 2025[280]. Environmental Goals - The company aims for net zero (Scope 1 and 2) greenhouse gas emissions by 2035 and to maintain 100% responsibly sourced gas certification across its portfolio[261].