Expand Energy Corporation Reports $2.196 Billion Revenue and $249 Million Net Loss in Q1 2025

Expand Energy Corporation, formerly known as Chesapeake Energy Corporation, reported significant financial results for the first quarter of 2025, reflecting the impact of its recent merger with Southwestern Energy Company. The company generated total revenues of $2.196 billion, a substantial increase from $1.081 billion in the same period last year. This growth was primarily driven by a surge in natural gas, oil, and NGL sales, which reached $2.3 billion, compared to $589 million in the prior year. However, the company also reported a net loss of $249 million, a decline from a profit of $26 million in the first quarter of 2024, largely due to increased operating expenses and derivative losses.

The financial performance of Expand Energy showed notable changes compared to the previous fiscal period. Operating expenses rose sharply to $2.464 billion from $1.049 billion, influenced by the merger and increased production activities. The company’s production expenses increased to $147 million, while gathering, processing, and transportation costs surged to $563 million, reflecting the higher operational scale post-merger. Additionally, the company recognized $1.014 billion in losses from natural gas derivatives, which contributed to the overall net loss.

Strategically, the completion of the Southwestern Merger on October 1, 2024, marked a pivotal development for Expand Energy. The merger resulted in the issuance of approximately 95.7 million shares to Southwestern shareholders, valued at around $7.9 billion. This merger not only expanded the company’s asset base but also positioned it as the largest independent natural gas producer in the U.S. The company has also received investment-grade ratings from S&P and Fitch, which have led to more favorable terms under its credit facility, enhancing its financial flexibility.

Operationally, Expand Energy reported a significant increase in production volumes, with total natural gas production reaching 6,254 MMcf per day, up from 3,198 MMcf per day in the prior year. The company’s geographic footprint now includes operations in Louisiana, Pennsylvania, West Virginia, and Ohio, further solidifying its market presence. As of March 31, 2025, the company had 237,979,439 shares of common stock outstanding and maintained a strong liquidity position with $2.8 billion available, including $0.3 billion in cash and $2.5 billion in unused borrowing capacity under its credit facility.

Looking ahead, Expand Energy aims to continue leveraging its enhanced operational scale and market position to drive shareholder value. The company plans to invest between $2.9 billion and $3.1 billion in capital expenditures for 2025, focusing on the development of its significant resource plays. Additionally, the company has set ambitious sustainability goals, including achieving net-zero greenhouse gas emissions by 2035. Despite the challenges posed by market volatility and geopolitical risks, Expand Energy remains committed to its strategic objectives and enhancing its operational efficiencies.