Expand Energy Corporation Reports Revenue Decline and Net Loss Following Southwestern Energy Merger

Expand Energy Corporation, formerly known as Chesapeake Energy Corporation, reported a significant transformation in its financial performance and operational strategy following the completion of its merger with Southwestern Energy Company on October 1, 2024. The company, now the largest independent natural gas producer in the U.S., recorded total revenues of $4.24 billion for the year ended December 31, 2024, a decrease from $8.72 billion in 2023. This decline was primarily attributed to lower average prices for natural gas, oil, and natural gas liquids (NGLs), as well as reduced sales volumes due to the divestiture of its Eagle Ford assets.

The merger with Southwestern Energy was a pivotal strategic move, valued at approximately $7.9 billion, which included the issuance of 95.7 million shares of common stock to Southwestern's shareholders. This merger is expected to enhance operational efficiencies and create a more resilient financial foundation. The company reported a net loss of $714 million for 2024, compared to a net income of $2.42 billion in 2023, reflecting the impact of lower commodity prices and increased operational costs associated with the merger.

In terms of operational metrics, Expand Energy's production volumes for 2024 included 1.32 trillion cubic feet (Tcf) of natural gas and 1.2 million barrels (MMBbl) of oil, with an average realized price of $2.03 per Mcf for natural gas and $60.41 per barrel for oil. The company also reported a total of 8,000 gross natural gas and oil wells, with a significant focus on its operations in the Haynesville, Northeast Appalachia, and Southwest Appalachia regions. The merger contributed to a substantial increase in proved reserves, which rose to 20.8 billion cubic feet equivalent (Bcfe) as of December 31, 2024.

Looking ahead, Expand Energy has outlined a capital expenditure plan of $2.9 to $3.1 billion for 2025, with a focus on completing 240 to 270 gross wells. The company aims to maintain a disciplined approach to capital allocation, prioritizing projects that offer the highest cash returns. Additionally, the company has implemented an enhanced returns framework, which includes a base dividend of $2.30 per share and a targeted $500 million reduction in net debt for 2025. The outlook remains cautious, with management acknowledging the potential for continued volatility in commodity prices and the need to navigate regulatory challenges in the energy sector.