Core Viewpoint - Expand Energy reported strong earnings for Q3 2025, with adjusted earnings per share of 97 cents, surpassing estimates, while revenues missed expectations but showed significant year-over-year growth [2][3]. Financial Performance - Adjusted earnings per share for Q3 2025 were 97 cents, beating the Zacks Consensus Estimate of 88 cents, and up from 16 cents in the same quarter last year [2]. - Total revenues from 'natural gas, oil and NGL' were $1.8 billion, missing the Zacks Consensus Estimate of $2 billion but significantly higher than $407 million from the previous year [3]. - Average daily production was reported at 7,333 million cubic feet of gas equivalent (MMcfe/day), a 177% increase from 2,647 MMcfe/day year-over-year, exceeding the consensus estimate [4]. Production & Pricing - Natural gas production for the quarter was 6,721 MMcfe/day, up 154% year-over-year, also surpassing the consensus mark [4]. - The average sales price for natural gas was $2.81 per Mcf, a 12% increase from $2.51 per Mcf last year, but below the consensus estimate of $2.84 [5]. Costs & Expenses - Total operating expenses rose to $2.2 billion from $803 million in the prior year, driven by increased gathering, processing, and transportation costs [6]. - Marketing costs increased to $659 million from $192 million year-over-year [6]. Cash Flow & Financial Position - Cash flow from operations was $1.2 billion, up from $422 million in the prior year, with capital expenditures totaling $775 million, resulting in free cash flow of $426 million [8]. - As of September 30, 2025, the company had $613 million in cash and cash equivalents and long-term debt of $5 billion, with a debt-to-capitalization ratio of 21.6% [8]. Future Guidance - For Q4 2025, Expand Energy targets average daily production between 7,200-7,300 MMcfe, and for the full year 2025, between 7,100-7,200 MMcfe [9]. - Capital spending is budgeted between $685 million and $765 million for the upcoming quarter, and between $2.8 billion and $2.9 billion for 2025 [10]. Market Sentiment - There has been an upward trend in estimates for Expand Energy, indicating positive market sentiment [11]. - The company currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [13].
Why Is Expand Energy (EXE) Up 18.3% Since Last Earnings Report?