Tue, Apr 29, 8:05 PM (13 days ago)
**Expand Energy Corporation (EXE) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $2,300 million (up from $589 million in Q1 2024), driven by increased sales volumes and higher prices post-Southwestern Merger. - **Net Income:** $(249) million (down from $26 million in Q1 2024), primarily due to higher operating expenses and derivative losses. - **Operating Expenses:** $2,464 million (up from $1,049 million in Q1 2024), with significant increases in production, gathering, processing, and transportation costs. - **Cash Flow from Operations:** $1,096 million (up from $552 million in Q1 2024), reflecting increased sales volumes and higher prices. - **Capital Expenditures:** $563 million (up from $421 million in Q1 2024), due to increased drilling and completion activity. **Profit Margins:** - **Operating Margin:** -11.2% (down from 2.9% in Q1 2024). - **Net Margin:** -10.8% (down from 2.2% in Q1 2024). **Earnings Changes:** - **Earnings Per Share (EPS):** $(1.06) (down from $0.20 in Q1 2024). - **Weighted Average Shares Outstanding:** 234,434,000 (up from 130,893,000 in Q1 2024), due to the Southwestern Merger. **Quarterly Performance Discussion:** - The Southwestern Merger significantly impacted Q1 2025 results, with increased sales volumes and higher prices driving revenue growth. - Operating expenses increased substantially, with notable rises in production, gathering, processing, and transportation costs. - Derivative losses of $1,014 million negatively impacted net income. - Cash flow from operations improved, reflecting increased sales volumes and higher prices. **Trends and Uncertainties:** - **Positive Trends:** Increased sales volumes, higher prices, and improved cash flow from operations. - **Uncertainties:** Volatility in natural gas, oil, and NGL prices, geopolitical risks, and economic headwinds. - **Future Operations Impact:** Expand Energy plans to invest between $2.9 billion and $3.1 billion in capital expenditures for 2025, focusing on drilling and completion activities. **Key Metrics:** - **Debt to Capitalization Ratio:** 65% (in compliance with the Credit Facility). - **Liquidity:** $2.8 billion available, including $0.3 billion in cash and $2.5 billion in unused borrowing capacity under the Credit Facility. - **Dividends:** $142 million paid in Q1 2025, with a base quarterly dividend of $0.575 per share declared for Q2 2025. **Conclusion:** Expand Energy Corporation's Q1 2025 results reflect the significant impact of the Southwestern Merger, with increased revenue and cash flow from operations. However, higher operating expenses and derivative losses negatively impacted net income. The company remains focused on capital expenditures and maintaining a strong liquidity position to navigate market uncertainties.