Expand Energy Delivers Strong Financial Performance in 2025

Expand Energy, a leading natural gas and oil exploration and production company, has reported impressive financial results for the first nine months of 2025. The company’s performance was bolstered by its strategic acquisition of Southwestern Energy Company in October 2024, as well as favorable market conditions and operational efficiencies.

Merger with Southwestern Energy The highlight of Expand Energy’s year was the successful completion of its merger with Southwestern Energy in October 2024. This transformative deal significantly expanded Expand’s asset base and production capabilities, particularly in the Haynesville and Southwest Appalachia regions.

As a result of the merger, Expand issued approximately 95.7 million shares of common stock to Southwestern’s shareholders, valued at around $7.9 billion based on Expand’s stock price at the time. The company also assumed Southwestern’s oilfield services business, which will allow for greater vertical integration and cost control.

Investment Grade Ratings and S&P 500 Inclusion Another major milestone for Expand Energy in 2025 was the attainment of investment grade credit ratings from S&P, Fitch, and Moody’s. This improved access to capital markets and reduced the company’s borrowing costs. Additionally, Expand’s common stock was added to the prestigious S&P 500 Index in March 2025, further enhancing its profile and liquidity.

Table 1: Expand Energy’s Credit Ratings

Rating Agency	Rating
S&P Global Ratings	BBB-
Fitch Ratings	BBB-
Moody’s Ratings	Baa3

Robust Financial Performance Expand Energy’s financial results for the first nine months of 2025 were exceptionally strong, driven by increased production volumes and higher commodity prices.

Natural gas, oil, and NGL sales totaled $6.17 billion, up from $1.37 billion in the prior-year period. This 349% increase was primarily attributable to the Southwestern merger, which added significant production in the Haynesville and Southwest Appalachia regions. Prices also improved, with the company’s average realized natural gas price rising from $1.75/Mcf to $3.01/Mcf, and oil prices increasing from $0/Bbl to $56.59/Bbl.

Table 2: Expand Energy’s Production and Realized Prices

Metric	Q3 2025	Q3 2024	9M 2025	9M 2024
Natural Gas (MMcf/d)	6,721	2,647	6,524	2,862
Oil (MBbl/d)	17	-	16	-
NGL (MBbl/d)	85	-	81	-
Realized Natural Gas Price ($/Mcf)	$2.81	$2.51	$3.09	$2.64
Realized Oil Price ($/Bbl)	$54.66	-	$57.63	-
Realized NGL Price ($/Bbl)	$21.62	-	$24.48	-

The increase in production and prices drove a corresponding rise in Expand’s cash flow from operations, which totaled $3.62 billion for the first nine months of 2025, up from $1.18 billion in the prior-year period.

Operational Efficiency and Cost Management Expand Energy has also demonstrated strong operational efficiency and cost control in the wake of the Southwestern merger. Production expenses per Mcfe decreased from $0.20 in the first nine months of 2024 to $0.24 in the same period of 2025, despite the significant increase in overall production volumes.

Similarly, gathering, processing, and transportation expenses per Mcfe rose from $0.61 to $0.89, reflecting the higher costs associated with Southwestern’s assets. However, Expand was able to partially offset these higher costs through synergies and operational improvements.

Depreciation, depletion, and amortization (DD&A) expenses per Mcfe also declined from $1.38 to $1.14, as Expand benefited from the lower depletion rates on the acquired Southwestern properties.

Capital Allocation and Financial Flexibility Expand Energy has maintained a strong balance sheet and ample liquidity to fund its operations and growth initiatives. As of September 30, 2025, the company had $4.1 billion in available liquidity, including $0.6 billion in cash and $3.5 billion in undrawn capacity on its revolving credit facility.

In September 2025, Expand amended and extended its credit facility, increasing the aggregate commitments from $2.5 billion to $3.5 billion and extending the maturity to 2030. This provides the company with additional financial flexibility to pursue strategic opportunities and manage its capital program.

Expand has also been actively managing its debt, repaying the $389 million in 2025 Notes that matured in January 2025 and redeeming $225 million in senior notes through open market repurchases during the current period.

The company’s Board of Directors has also authorized a $1 billion share repurchase program, and Expand paid $628 million in common stock dividends during the first nine months of 2025, up from $254 million in the prior-year period. This demonstrates Expand’s commitment to returning capital to shareholders while maintaining financial discipline.

Table 3: Expand Energy’s Sources and Uses of Cash ($ millions)

Item	9M 2025	9M 2024
Cash Provided by Operating Activities	$3,619	$1,183
Proceeds from Divestitures	$19	$17
Receipts of Deferred Consideration	$116	$116
Proceeds from Warrant Exercise	$22	$1
Capital Expenditures	$(1,995)	$(1,021)
Property Acquisitions	$(69)	-
Contributions to Investments	$(14)	$(71)
Cash Paid to Purchase Debt	$(663)	-
Cash Paid to Repurchase Common Stock	$(100)	-
Cash Paid for Common Stock Dividends	$(628)	$(254)
Net Increase (Decrease) in Cash	$296	$(33)

Outlook and Risks Looking ahead, Expand Energy remains cautiously optimistic about the future. The company expects to complete and bring online 250 to 280 gross wells in 2025, utilizing 11 to 13 rigs and investing between $2.8 and $2.9 billion in capital expenditures.

However, the company acknowledges several risks and uncertainties that could impact its performance, including:

• Continued volatility in natural gas, oil, and NGL prices due to geopolitical tensions and macroeconomic factors
• Potential impacts from tariffs on steel and other inputs
• Challenges in securing adequate water supplies and disposing of produced water
• Risks related to pipeline and transportation capacity constraints
• Cybersecurity threats and data privacy concerns
• Potential regulatory changes, particularly related to environmental, social, and governance (ESG) issues

To mitigate these risks, Expand has implemented a comprehensive hedging program that provides a floor on approximately half of its projected gas volumes through 2026, while maintaining significant upside participation. The company also continues to focus on operational efficiency, cost control, and prudent capital allocation to navigate the volatile market environment.

Conclusion Expand Energy has delivered an exceptional financial performance in 2025, driven by the successful integration of Southwestern Energy and favorable market conditions. The company’s strong operational execution, cost management, and financial discipline have positioned it for continued success.

Looking ahead, Expand Energy remains focused on maximizing shareholder value through disciplined capital allocation, strategic acquisitions, and a commitment to operational excellence. The company’s investment-grade credit ratings, ample liquidity, and enhanced capital returns framework provide a solid foundation for future growth and shareholder returns.