# Expand Energy Corporation (NASDAQ: EXE) Q2 2025 Financial Results Summary
Expand Energy Corporation released its second quarter 2025 financial results on July 29, 2025. The company continues to demonstrate strong financial performance and operational efficiencies. Below is a summary of the key metrics from the report.
## Financial Highlights
– **Net Cash Provided by Operating Activities**: $1,322 million, compared to $209 million in Q2 2024, representing a **525% increase** year-over-year.
– **Net Income**: $968 million, or $4.02 per fully diluted share, compared to a net loss of $227 million in Q2 2024.
– **Adjusted Net Income**: $265 million, or $1.10 per share, notably higher than $1 million in Q2 2024.
– **Adjusted EBITDAX**: $1,176 million, up from $358 million in Q2 2024, marking a **228% increase**.
– **Production**: Approximately 7.20 Bcfe/d (92% natural gas), an increase from 2.75 Bcfe/d in Q2 2024.
## Operational Updates
– Successfully operated an average of 11 rigs, drilling 49 wells and turning 59 wells in line.
– The company has recorded the highest average drilled footage per day across all business units.
– Expanded its synergy outlook to **$600 million** by the end of 2026, up from earlier expectations.
## Capital Expenditures
– Reduced full year 2025 drilling and completion capital expenditures guidance by approximately $100 million, targeting a total of **$2.9 billion**.
– Anticipates incremental productive capacity growth for an additional investment of $275 million by the end of 2025.
## Shareholder Returns
– Total return to shareholders in the first half of 2025 amounted to **$585 million** through:
– $137 million in quarterly base dividends.
– $211 million in variable dividends.
– $100 million in share repurchases.
– Plans to pay both base and variable dividends totaling **$1.465** per share, payable on September 4, 2025, to shareholders of record as of August 14, 2025.
## Debt Management
– Increased 2025 net debt paydown target to **$1 billion**, up from $500 million, aimed at improving balance sheet stability.
## Comparative Metrics (Q2 2025 vs. Q2 2024)
– **Net Income Growth**: $968 million (2025) vs. -$227 million (2024); a shift from a loss of **$1.73** to a gain of **$4.02** in diluted earnings per share.
– **Total Revenues**: Increased to $3,690 million, compared to $505 million in Q2 2024, representing a **628% growth**.
– **Production & Realized Oil and Gas Prices**: The company’s realized natural gas price was **$2.93** per Mcf in Q2 2025 compared to **$1.51** in Q2 2024, showing substantial revenue gain due to higher commodity prices.
## Additional Highlights
– Released its inaugural **Sustainability Report**, reflecting a commitment to responsible development across its operations.
– Capital expenditures during Q2 were **$727 million**, increasing from $293 million in Q2 2024.
In summary, Expand Energy’s strong second quarter demonstrates significant year-over-year growth across its financial metrics, successful operational strategies, and ongoing commitment to enhancing shareholder value through dividends and share repurchases.
### CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
_(amounts in millions)_
| Revenues and other: | Three Months Ended June 30, | Six Months Ended June 30, | ||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Natural gas, oil and NGL | $2,021 | $378 | $4,321 | $967 |
| Marketing | 788 | 136 | 1,698 | 448 |
| Natural gas, oil and NGL derivatives | 877 | -11 | -137 | 161 |
| Gains on sales of assets | 4 | 2 | 4 | 10 |
| Total revenues and other | 3,690 | 505 | 5,886 | 1,586 |
| Operating expenses: | ||||
| Production | 151 | 49 | 298 | 108 |
| Gathering, processing and transportation | 563 | 154 | 1,126 | 327 |
| Severance and ad valorem taxes | 49 | 18 | 97 | 47 |
| Exploration | 20 | 3 | 27 | 5 |
| Marketing | 791 | 141 | 1,710 | 464 |
| General and administrative | 40 | 47 | 87 | 94 |
| Separation and other termination costs | — | 23 | — | 23 |
| Depreciation, depletion and amortization | 769 | 348 | 1,480 | 747 |
| Other operating expense, net | 38 | 16 | 60 | 33 |
| Total operating expenses | 2,421 | 799 | 4,885 | 1,848 |
| Income (loss) from operations | 1,269 | -294 | 1,001 | -262 |
| Other income (expense): | ||||
| Interest expense | -60 | -20 | -119 | -39 |
| Gains (losses) on purchases, exchanges or | 3 | -2 | 3 | -2 |
| extinguishments of debt | ||||
| Other income, net | 16 | 21 | 24 | 41 |
| Total other income (expense) | -41 | -1 | -92 | — |
| Income (loss) before income taxes | 1,228 | -295 | 909 | -262 |
| Income tax expense (benefit) | 260 | -68 | 190 | -61 |
| Net income (loss) | $968 | -227 | $719 | -201 |
| Earnings (loss) per common share: | ||||
| Basic | $4.07 | -1.73 | $3.04 | -1.53 |
| Diluted | $4.02 | -1.73 | $2.99 | -1.53 |
| Weighted average common shares outstanding (in | ||||
| thousands): | ||||
| Basic | 237,973 | 131,168 | 236,213 | 131,030 |
| Diluted | 240,560 | 131,168 | 240,628 | 131,030 |
—
### CONDENSED CONSOLIDATED BALANCE SHEETS
_(amounts in millions)_
| Assets | June 30, 2025 | December 31, 2024 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $731 | $317 |
| Restricted cash | 75 | 78 |
| Accounts receivable, net | 1,074 | 1,226 |
| Derivative assets | 46 | 84 |
| Other current assets | 346 | 292 |
| Total current assets | 2,272 | 1,997 |
| Property and equipment: | ||
| Natural gas and oil properties, successful efforts method | ||
| Proved natural gas and oil properties | 24,755 | 23,093 |
| Unproved properties | 5,563 | 5,897 |
| Other property and equipment | 679 | 654 |
| Total property and equipment | 30,997 | 29,644 |
| Less: | ||
| accumulated depreciation, depletion and amortization | -6,825 | -5,362 |
| Total property and equipment, net | 24,172 | 24,282 |
| Long-term derivative assets | 13 | 1 |
| Deferred income tax assets | 457 | 589 |
| Other long-term assets | 854 | 1,025 |
| Total assets | $27,768 | $27,894 |
| Liabilities and stockholders’ equity | ||
| Current liabilities: | ||
| Accounts payable | $747 | $777 |
| Current maturities of long-term debt, net | — | 389 |
| Accrued interest | 107 | 100 |
| Derivative liabilities | 155 | 71 |
| Other current liabilities | 1,915 | 1,786 |
| Total current liabilities | 2,924 | 3,123 |
| Long-term debt, net | 5,122 | 5,291 |
| Long-term derivative liabilities | 85 | 68 |
| Asset retirement obligations, net of current portion | 513 | 499 |
| Long-term contract liabilities | 1,083 | 1,227 |
| Other long-term liabilities | 104 | 121 |
| Total liabilities | 9,831 | 10,329 |
| Contingencies and commitments | ||
| Stockholders’ equity: | ||
| Common stock, $0.01 par value, 450,000,000 shares authorized: | 2 | 2 |
| 237,437,223 and 231,769,886 shares issued | ||
| Additional paid-in capital | 13,716 | 13,687 |
| Retained earnings | 4,219 | 3,876 |
| Total stockholders’ equity | 17,937 | 17,565 |
| Total liabilities and stockholders’ equity | $27,768 | $27,894 |
