Expand Energy Corporation Reports Third Quarter 2026 Results
SPRING, Texas – October 27, 2026 – Expand Energy Corporation (NASDAQ: EXE) ("Expand Energy" or the "Company") today reported third quarter 2026 financial and operating results.
• Net cash provided by operating activities of $1,177 million, driven by operational performance and liquids revenue
Net income of $519 million, or $2.24 per fully diluted share; adjusted net income (1)
Completed the acquisition of Twin Eagle Holdings, N.A., LLC ("Twin Eagle") on September 16
• Repurchased $305 million of common stock in the third quarter; year-to-date repurchases total approximately $900 million or 4% of shares outstanding (1) Definitions of non-GAAP financial measures and reconciliations of each non- GAAP financial measure to the most directly comparable GAAP financial measure are included at the end of this release. “With our diversified scale, investment-grade balance sheet and coast-to-coast customer access, Expand Energy is uniquely positioned to monetize the volatility we see in the gas market today, provide advantaged supply to premium markets and capitalize on the demand growth we expect in the future,” said President and Chief Executive Officer Danny Brown. “Capturing value requires a talented team, disciplined capital allocation and operational excellence. I look forward to working with this team to continue the momentum built and firmly establish Expand Energy as North America’s leading integrated gas company.”
Expand Energy operated an average of 11 rigs during the third quarter, drilling 46 wells and turning 59 wells in line, resulting in net production of approximately 7.54 Bcfe/d (92% natural gas), including 6.9 Bcf/d of natural gas, 17 MBbls/d of oil and 87 MBbls/d of natural gas liquids. A detailed breakdown of third quarter production, capital expenditures and activity can be found in the supplemental slides which have been posted at https://investors.expandenergy.com/events-presentations.
For the full year 2026, Expand Energy expects to run 11 – 12 rigs and has updated its capital investment guidance to approximately $3 billion. Average daily production is expected to be approximately 7.45 – 7.55 Bcfe/d.
A detailed breakdown of the Company's 2026 annual capital and operating outlook can be found in the supplemental slides.
Expand Energy has reported $150 million of marketing adjusted EBITDA (1) for the nine months ended September 30, 2026. During the fourth quarter, the Company expects $80 million of marketing EBITDA, reflecting the impact of the Twin Eagle acquisition (the "Twin Eagle Acquisition"), which closed in September 2026.
INVESTOR CONTACT: MEDIA CONTACT: EXPAND ENERGY CORPORATION Brittany Raiford Meghan Macdonald 10000 Energy Drive (405) 935-8870 (346) 443-6419 Spring, TX 77389 ir@expandenergy.com media@expandenergy.com
Expand Energy expects to continue its returns-focused allocation of capital, including opportunistic share repurchases, while preserving balance sheet capacity to capitalize on attractive opportunities through the cycle. During the third quarter, the Company repurchased $305 million of common stock and has $1 billion of capacity for additional repurchases under its previously announced expanded authorization. The Company plans to pay its quarterly base dividend of $0.575 per share on December 3, 2026 to shareholders of record at the close of business on November 12, 2026.
A conference call to discuss Expand Energy's third quarter 2026 financial and operating results and 2026 outlook has been scheduled for 9 a.m. EDT on October 28, 2026. Participants can access the live webcast at https://edge.media- server.com/mmc/p/t8j6c7wi/. Participants who would like to ask a question, can register at https://register-conf.media- server.com/register/BI826fdda5cf68417db7bc224b2fdac43b, and will receive the dial-in info and a unique PIN to join the call. Links to the conference call will be provided at https://investors.expandenergy.com/. A replay will be available on the website following the call.
Financial Statements, Non-GAAP Financial Measures and 2026 Guidance and Outlook Projections
This news release contains the non-GAAP financial measures described below in the section titled "Non-GAAP Financial Measures." Reconciliations of each non- GAAP financial measure used in this news release to the most directly comparable GAAP financial measure are provided below. Additional detail on the Company’s 2026 third quarter financial and operational results, along with non-GAAP measures that adjust for items typically excluded by securities analysts, are available on the Company’s website. Non-GAAP measures should not be considered as an alternative to, or more meaningful than, GAAP measures. Management’s guidance for 2026 can be found on the Company’s website at www.expandenergy.com. 2 Expand Energy Corporation (NASDAQ: EXE) is North America’s leading integrated natural gas company reaching customers from coast-to-coast across the U.S. and Canada. As the largest natural gas producer in the U.S., we are powered by innovative employees committed to expanding America’s energy reach to fuel a more affordable, reliable, lower carbon future.
This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”). Forward-looking statements include our current expectations or forecasts of future events, including matters relating to armed conflict between Russia and Ukraine, instability in the Middle East and Venezuela and changes in China-Taiwan relations, along with the effects of the current global economic environment, and the impact of each on our business, financial condition, results of operations and cash flows, actions by, or disputes among or between, members of OPEC+ and other foreign oil-exporting countries, market factors, market prices, our ability to meet debt service requirements, our ability to continue to pay cash dividends, the amount and timing of any cash dividends and our sustainability initiatives. Forward-looking and other statements in this news release regarding our environmental, social and other sustainability plans and goals are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the Securities and Exchange Commission (“SEC”). In addition, historical, current, and forward-looking environmental, social and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Forward-looking statements often address our expected future business, financial performance and financial condition, and often contain words such as “aim,” “predict,” “should,” “expect,” “could,” “may,” “anticipate,” “intend,” “plan,” “ability,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “guidance,” “outlook,” “opportunity” or “strategy.” The absence of such words or expressions does not necessarily mean the statements are not forward-looking.
Although we believe the expectations and forecasts reflected in our forward- looking statements are reasonable, they are inherently subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. No assurance can be given that such forward-looking statements will be correct or achieved or that the assumptions are accurate or will not change over time. Particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include:
• the volatility of natural gas, oil and NGL prices, which are affected by general economic and business conditions, as well as increased demand for (and availability of) alternative fuels and electric vehicles;
• risks from regional epidemics or pandemics and related economic turmoil, including supply chain constraints;
• write-downs of our natural gas and oil asset carrying values due to low commodity prices;
• significant capital expenditures are required to replace our reserves and conduct our business;
• uncertainties inherent in estimating quantities of natural gas, oil and NGL reserves and projecting future rates of production and the amount and timing of development expenditures;
• our ability to generate profits or achieve targeted results in drilling and well operations;
• uncertainties, risks and costs associated with natural gas and oil operations;
• our need to secure adequate supplies of water for our drilling operations and to dispose of or recycle the water used;
• pipeline and gathering system capacity constraints and transportation interruptions;
• risks from failure to protect personal information and data and compliance with data privacy and security laws and regulations;
• the impact of inflation and commodity price volatility, including as a result of decisions made by OPEC+ and armed conflict between Russia and Ukraine, instability in the Middle East due to the potential broadening of the military conflict between the U.S. and Iran beyond the Strait of Hormuz, instability in Venezuela, changes in China-Taiwan relations, along with the effects of the current global economic environment, on our business, financial condition, employees, contractors, vendors and the global demand for natural gas and oil and on U.S. and global financial markets;
• the limitations on our financial flexibility due to our level of indebtedness and restrictive covenants from our indebtedness;
• challenges with employee recruitment and retention and an increasingly competitive labor market;
• risks related to acquisitions or dispositions, or potential acquisitions or dispositions;
• security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, or from breaches of information technology systems of third parties with whom we transact business;
• our ability to achieve and maintain sustainability certifications, goals and commitments;
• environmental and sustainability legislation and regulatory initiatives, including those addressing the impact of climate change or further regulating hydraulic fracturing, greenhouse gas emissions, flaring or water disposal; 3 • federal and state tax proposals affecting our industry;
• risks related to an annual limitation on the utilization of our tax attributes, which was triggered upon the completion of our merger with Southwestern Energy Company (“the Southwestern Merger”), as well as trading in our common stock, additional issuance of common stock, and certain other stock transactions, which could lead to an additional, potentially more restrictive, annual limitation;
• the results, effects and benefits of the Twin Eagle Acquisition, future opportunities for the Company, other plans with respect to the Twin Eagle Acquisition, and the anticipated impact of the Twin Eagle Acquisition on the Company’s results of operations, financial position, growth opportunities and competitive position;
• other factors that are described under Risk Factors in Item 1A of our 2025 Form 10-K, as updated by our Form 10-Qs and other filings with the SEC.
We caution you not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of the filing date, and we undertake no obligation and have no intention to update any forward-looking statement, except as required by law. We urge you to carefully review and consider the disclosures in this news release and our filings with the SEC that attempt to advise interested parties of the risks and factors that may affect our business.
All forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement. 4
($ in millions, except per September 30, December 31, share data) 2026 2025 ────────────────────────────────────────────────────────────────────────────── Assets Current assets: Cash and cash $ 118 $ 616 equivalents Restricted 103 80 cash Accounts receivable, 1,389 1,599 net Derivative 889 264 assets Other current 597 357 assets Total current 3,096 2,916 assets Property and equipment: Natural gas and oil properties, successful efforts method Proved natural gas 28,827 26,606 and oil properties Unproved 5,523 5,478 properties Other property 555 509 and equipment Total property 34,905 32,593 and equipment Less: accumulated depreciati… -10,423 -8,278 depletion and amortizati… Property and equipment — 40 held for sale, net Total property and 24,482 24,355 equipment, net Long-term derivative 46 47 assets Deferred income tax — 168 assets Goodwill 349 — Intangible 1,082 — assets, net Other long-term 687 801 assets Total $ 29,742 $ 28,287 assets Liabilities and stockholde… equity Current liabilitie… Accounts $ 1,179 $ 753 payable Accrued 30 100 interest Derivative 2 3 liabilities Other current 2,215 2,045 liabilities Total current 3,426 2,901 liabilities Long-term 4,632 5,009 debt, net Long-term derivative 12 1 liabilities Asset retirement obligation… 744 688 net of current portion Long-term contract 914 975 liabilities Other long-term 514 135 liabilities Total 10,242 9,709 liabilities Contingenc… and commitments Stockholde… equity: Common stock, $0.01 par value, 450,000,000 shares 2 2 authorized: 230,944,097 and 239,249,874 shares issued Additional paid-in 13,787 13,746 capital Retained 5,711 4,830 earnings Total stockholde… 19,500 18,578 equity Total liabilities and $ 29,742 $ 28,287 stockholde… equity
As a supplement to the financial results prepared in accordance with U.S. GAAP, Expand Energy’s quarterly earnings releases contain certain financial measures that are not prepared or presented in accordance with U.S. GAAP. These non-GAAP financial measures include Adjusted Net Income, Adjusted Diluted Earnings Per Common Share, Adjusted EBITDAX, Marketing Adjusted EBITDA, Free Cash Flow, Adjusted Free Cash Flow and Net Debt. A reconciliation of each financial measure to its most directly comparable GAAP financial measure is included in the tables below. Management believes these adjusted financial measures are a meaningful adjunct to earnings and cash flows calculated in accordance with GAAP because (a) management uses these financial measures to evaluate the Company’s trends and performance, (b) these financial measures are comparable to estimates provided by securities analysts, and (c) items excluded generally are one-time items or items whose timing or amount cannot be reasonably estimated. Accordingly, any guidance provided by the Company generally excludes information regarding these types of items.
Expand Energy's definitions of each non-GAAP measure presented herein are provided below. Because not all companies or securities analysts use identical calculations, Expand Energy’s non-GAAP measures may not be comparable to similarly titled measures of other companies or securities analysts.
Adjusted Net Income: Adjusted Net Income is defined as net income (loss) adjusted to exclude unrealized (gains) losses on derivatives, separation and other termination costs, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results, less a tax effect using applicable rates. Expand Energy believes that Adjusted Net Income facilitates comparisons of the Company's period-over-period performance, by excluding the impact of items that, in the opinion of management, do not reflect Expand Energy's core operating performance. Adjusted Net Income should not be considered an alternative to, or more meaningful than, net income (loss) as presented in accordance with GAAP.
Adjusted Diluted Earnings Per Common Share: Adjusted Diluted Earnings Per Common Share is defined as diluted earnings (loss) per common share adjusted to exclude the per diluted share amounts attributed to unrealized (gains) losses on derivatives, separation and other termination costs, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results, less a tax effect using applicable rates. Expand Energy believes that Adjusted Diluted Earnings Per Common Share facilitates comparisons of the Company's period-over-period performance, by excluding the impact of items that, in the opinion of management, do not reflect Expand Energy's core operating performance. Adjusted Diluted Earnings Per Common Share should not be considered an alternative to, or more meaningful than, earnings (loss) per common share as presented in accordance with GAAP.
Adjusted EBITDAX: Adjusted EBITDAX is defined as net income (loss) before interest expense, income tax expense (benefit), depreciation, depletion and amortization expense, exploration expense, unrealized (gains) losses on derivatives, separation and other termination costs, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results. Adjusted EBITDAX is presented as it provides investors an indication of the Company's ability to internally fund exploration and development activities and service or incur debt. Adjusted EBITDAX should not be considered an alternative to, or more meaningful than, net income (loss) as presented in accordance with GAAP.
Marketing Adjusted EBITDA: Marketing Adjusted EBITDA is defined as Marketing segment income (loss) from operations, adjusted to eliminate intersegment gathering, processing and transportation fees included in Marketing segment income from operations that are eliminated in consolidation, exclude unrealized gains and losses on Marketing derivatives, and add back depreciation and amortization attributable to the Marketing segment. Marketing Adjusted EBITDA is presented as a performance measure because management believes it provides investors with additional information regarding the operating performance of the Marketing segment after giving effect to the elimination of intersegment gathering, processing and transportation fees and excluding the impact of unrealized gains and losses on Marketing derivatives, and facilitates comparisons of the Marketing segment’s operating performance across periods. Marketing Adjusted EBITDA should not be considered an alternative to, or more meaningful than, Marketing segment income (loss) from operations as presented in accordance with GAAP.
Free Cash Flow: Free Cash Flow is defined as net cash provided by operating activities less cash capital expenditures. Free Cash Flow is a liquidity measure that provides investors additional information regarding the Company's ability to service or incur debt and return cash to shareholders. Free Cash Flow should not be considered an alternative to, or more meaningful than, net cash provided by (used in) operating activities, or any other measure of liquidity presented in accordance with GAAP. 10 Adjusted Free Cash Flow: Adjusted Free Cash Flow is defined as net cash provided by operating activities less cash capital expenditures and cash contributions to investments, adjusted to exclude certain items management believes affect the comparability of operating results. Adjusted Free Cash Flow is a liquidity measure that provides investors additional information regarding the Company's ability to service or incur debt and return cash to shareholders. Adjusted Free Cash Flow should not be considered an alternative to, or more meaningful than, net cash provided by (used in) operating activities, or any other measure of liquidity presented in accordance with GAAP.
Net Debt: Net Debt is defined as GAAP total debt excluding premiums, discounts, and deferred issuance costs, as well as secured borrowings under the Twin Eagle receivable purchase agreement less cash and cash equivalents. Net Debt is useful to investors as a widely understood measure of liquidity and leverage, but this measure should not be considered as an alternative to, or more meaningful than, total debt presented in accordance with GAAP.
Net debt to Adjusted EBITDAX: Net debt to Adjusted EBITDAX is a non-GAAP measure and is defined as Net Debt divided by an annualized Adjusted EBITDAX measure on a trailing twelve month calculation. Management uses Net Debt to Adjusted EBITDAX to assess liquidity and leverage. The Company believes this measure is useful to investors because it provides supplemental information to investors regarding its ability internally fund exploration and development activities and service or incur debt. However, this measure should not be considered as an alternative to, or more meaningful than, total debt or net income (loss) as presented in accordance with GAAP. 11
The three- and nine-month periods ended September 30, 2026 and September 30, 2025 include a tax effect attributed to the reconciling (a) adjustments using a statutory rate of 22%. ──────────────────────────────────────────────────────────────────────────────
RECONCILIATION OF EARNINGS PER COMMON SHARE TO ADJUSTED DILUTED EARNINGS PER COMMON SHARE (unaudited)
The three- and nine-month periods ended September 30, 2026 and September 30, 2025 include a tax effect attributed to the reconciling (a) adjustments using a statutory rate of 22%. ──────────────────────────────────────────────────────────────────────────────
RECONCILIATION OF MARKETING SEGMENT INCOME FROM OPERATIONS TO MARKETING ADJUSTED EBITDA (unaudited)
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW (unaudited)
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDAX TRAILING TWELVE MONTHS (unaudited)
Full text with the tables
Exhibit 99.1
N E W S R E L E A S E
Expand Energy Corporation Reports Third Quarter 2026 Results
SPRING, Texas – October 27, 2026 – Expand Energy Corporation (NASDAQ: EXE)
("Expand Energy" or the "Company") today reported third quarter 2026 financial
and operating results.
• Net cash provided by operating activities of $1,177 million, driven by
operational performance and liquids revenue
•
Net income of $519 million, or $2.24 per fully diluted share; adjusted net
income (1)
of $338 million, or $1.46 per diluted share
•
Adjusted EBITDAX
(1)
of $1,229 million
•
Net production of 7.54
Bcfe/d (92% natural gas)
•
Completed the acquisition of Twin Eagle Holdings, N.A., LLC ("Twin Eagle") on
September 16
•
Total debt of $4.6 billion as of quarter-end and leverage ratio (1)
of 0.8x
• Repurchased $305 million of common stock in the third quarter; year-to-date
repurchases total approximately $900 million or 4% of shares outstanding
(1) Definitions of non-GAAP financial measures and reconciliations of each non-
GAAP financial measure to the most directly comparable GAAP financial measure
are included at the end of this release.
“With our diversified scale, investment-grade balance sheet and coast-to-coast
customer access, Expand Energy is uniquely positioned to monetize the volatility
we see in the gas market today, provide advantaged supply to premium markets and
capitalize on the demand growth we expect in the future,” said President and
Chief Executive Officer Danny Brown. “Capturing value requires a talented team,
disciplined capital allocation and operational excellence. I look forward to
working with this team to continue the momentum built and firmly establish
Expand Energy as North America’s leading integrated gas company.”
Operations Update
Expand Energy operated an average of 11 rigs during the third quarter, drilling
46 wells and turning 59 wells in line, resulting in net production of
approximately 7.54 Bcfe/d (92% natural gas), including 6.9 Bcf/d of natural gas,
17 MBbls/d of oil and 87 MBbls/d of natural gas liquids. A detailed breakdown of
third quarter production, capital expenditures and activity can be found in the
supplemental slides which have been posted at
https://investors.expandenergy.com/events-presentations.
2026 Capital and Operating Outlook
For the full year 2026, Expand Energy expects to run 11 – 12 rigs and has
updated its capital investment guidance to approximately $3 billion. Average
daily production is expected to be approximately 7.45 – 7.55 Bcfe/d.
A detailed breakdown of the Company's 2026 annual capital and operating outlook
can be found in the supplemental slides.
2026 Marketing and Commercial Update and Outlook
Expand Energy has reported $150 million of marketing adjusted EBITDA (1) for the
nine months ended September 30, 2026. During the fourth quarter, the Company
expects $80 million of marketing EBITDA, reflecting the impact of the Twin Eagle
acquisition (the "Twin Eagle Acquisition"), which closed in September 2026.
INVESTOR CONTACT: MEDIA CONTACT: EXPAND ENERGY CORPORATION
Brittany Raiford Meghan Macdonald 10000 Energy Drive
(405) 935-8870 (346) 443-6419 Spring, TX 77389
ir@expandenergy.com media@expandenergy.com
Shareholder Returns Update
Expand Energy expects to continue its returns-focused allocation of capital,
including opportunistic share repurchases, while preserving balance sheet
capacity to capitalize on attractive opportunities through the cycle. During the
third quarter, the Company repurchased $305 million of common stock and has $1
billion of capacity for additional repurchases under its previously announced
expanded authorization. The Company plans to pay its quarterly base dividend of
$0.575 per share on December 3, 2026 to shareholders of record at the close of
business on November 12, 2026.
Conference Call Information
A conference call to discuss Expand Energy's third quarter 2026 financial and
operating results and 2026 outlook has been scheduled for 9 a.m. EDT on October
28, 2026. Participants can access the live webcast at https://edge.media-
server.com/mmc/p/t8j6c7wi/. Participants who would like to ask a question, can
register at https://register-conf.media-
server.com/register/BI826fdda5cf68417db7bc224b2fdac43b, and will receive the
dial-in info and a unique PIN to join the call. Links to the conference call
will be provided at https://investors.expandenergy.com/. A replay will be
available on the website following the call.
Financial Statements, Non-GAAP Financial Measures and 2026 Guidance and Outlook
Projections
This news release contains the non-GAAP financial measures described below in
the section titled "Non-GAAP Financial Measures." Reconciliations of each non-
GAAP financial measure used in this news release to the most directly comparable
GAAP financial measure are provided below. Additional detail on the Company’s
2026 third quarter financial and operational results, along with non-GAAP
measures that adjust for items typically excluded by securities analysts, are
available on the Company’s website. Non-GAAP measures should not be considered
as an alternative to, or more meaningful than, GAAP measures. Management’s
guidance for 2026 can be found on the Company’s website at www.expandenergy.com.
2
Expand Energy Corporation (NASDAQ: EXE) is North America’s leading integrated
natural gas company reaching customers from coast-to-coast across the U.S. and
Canada. As the largest natural gas producer in the U.S., we are powered by
innovative employees committed to expanding America’s energy reach to fuel a
more affordable, reliable, lower carbon future.
Forward-Looking Statements
This release includes “forward-looking statements” within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934 (the “Exchange Act”). Forward-looking statements include our current
expectations or forecasts of future events, including matters relating to armed
conflict between Russia and Ukraine, instability in the Middle East and
Venezuela and changes in China-Taiwan relations, along with the effects of the
current global economic environment, and the impact of each on our business,
financial condition, results of operations and cash flows, actions by, or
disputes among or between, members of OPEC+ and other foreign oil-exporting
countries, market factors, market prices, our ability to meet debt service
requirements, our ability to continue to pay cash dividends, the amount and
timing of any cash dividends and our sustainability initiatives. Forward-looking
and other statements in this news release regarding our environmental, social
and other sustainability plans and goals are not an indication that these
statements are necessarily material to investors or required to be disclosed in
our filings with the Securities and Exchange Commission (“SEC”). In addition,
historical, current, and forward-looking environmental, social and
sustainability-related statements may be based on standards for measuring
progress that are still developing, internal controls and processes that
continue to evolve, and assumptions that are subject to change in the future.
Forward-looking statements often address our expected future business, financial
performance and financial condition, and often contain words such as “aim,”
“predict,” “should,” “expect,” “could,” “may,” “anticipate,” “intend,” “plan,”
“ability,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,”
“target,” “guidance,” “outlook,” “opportunity” or “strategy.” The absence of
such words or expressions does not necessarily mean the statements are not
forward-looking.
Although we believe the expectations and forecasts reflected in our forward-
looking statements are reasonable, they are inherently subject to numerous risks
and uncertainties, most of which are difficult to predict and many of which are
beyond our control. No assurance can be given that such forward-looking
statements will be correct or achieved or that the assumptions are accurate or
will not change over time. Particular uncertainties that could cause our actual
results to be materially different than those expressed in our forward-looking
statements include:
• Reduced demand for natural gas, oil and natural gas liquids (“NGLs”);
• negative public perceptions of our industry;
• competition in the natural gas and oil exploration and production industry;
• the volatility of natural gas, oil and NGL prices, which are affected by
general economic and business conditions, as well as increased demand for (and
availability of) alternative fuels and electric vehicles;
• risks from regional epidemics or pandemics and related economic turmoil,
including supply chain constraints;
• write-downs of our natural gas and oil asset carrying values due to low
commodity prices;
• significant capital expenditures are required to replace our reserves and
conduct our business;
• our ability to replace reserves and sustain production;
• uncertainties inherent in estimating quantities of natural gas, oil and NGL
reserves and projecting future rates of production and the amount and timing of
development expenditures;
• drilling and operating risks and resulting liabilities;
• our ability to generate profits or achieve targeted results in drilling and
well operations;
• leasehold terms expiring before production can be established;
• risks from our commodity price risk management activities;
• uncertainties, risks and costs associated with natural gas and oil operations;
• our need to secure adequate supplies of water for our drilling operations and
to dispose of or recycle the water used;
• pipeline and gathering system capacity constraints and transportation
interruptions;
• risks related to our plans to participate in the global LNG value chain;
• terrorist activities and/or cyber-attacks adversely impacting our operations;
• risks from failure to protect personal information and data and compliance
with data privacy and security laws and regulations;
• disruption of our business by natural or human causes beyond our control;
• a deterioration in general economic, business or industry conditions;
• the impact of inflation and commodity price volatility, including as a result
of decisions made by OPEC+ and armed conflict between Russia and Ukraine,
instability in the Middle East due to the potential broadening of the military
conflict between the U.S. and Iran beyond the Strait of Hormuz, instability in
Venezuela, changes in China-Taiwan relations, along with the effects of the
current global economic environment, on our business, financial condition,
employees, contractors, vendors and the global demand for natural gas and oil
and on U.S. and global financial markets;
• our inability to access the capital markets on favorable terms;
• the limitations on our financial flexibility due to our level of indebtedness
and restrictive covenants from our indebtedness;
• challenges with employee recruitment and retention and an increasingly
competitive labor market;
• risks related to acquisitions or dispositions, or potential acquisitions or
dispositions;
• security threats, including cybersecurity threats and disruptions to our
business and operations from breaches of our information technology systems, or
from breaches of information technology systems of third parties with whom we
transact business;
• our ability to achieve and maintain sustainability certifications, goals and
commitments;
• environmental and sustainability legislation and regulatory initiatives,
including those addressing the impact of climate change or further regulating
hydraulic fracturing, greenhouse gas emissions, flaring or water disposal;
3
• federal and state tax proposals affecting our industry;
• risks related to an annual limitation on the utilization of our tax
attributes, which was triggered upon the completion of our merger with
Southwestern Energy Company (“the Southwestern Merger”), as well as trading in
our common stock, additional issuance of common stock, and certain other stock
transactions, which could lead to an additional, potentially more restrictive,
annual limitation;
• the results, effects and benefits of the Twin Eagle Acquisition, future
opportunities for the Company, other plans with respect to the Twin Eagle
Acquisition, and the anticipated impact of the Twin Eagle Acquisition on the
Company’s results of operations, financial position, growth opportunities and
competitive position;
• the integration of acquisitions, including the Twin Eagle Acquisition; and
• other factors that are described under Risk Factors in Item 1A of our 2025
Form 10-K, as updated by our Form 10-Qs and other filings with the SEC.
We caution you not to place undue reliance on the forward-looking statements
contained in this news release, which speak only as of the filing date, and we
undertake no obligation and have no intention to update any forward-looking
statement, except as required by law. We urge you to carefully review and
consider the disclosures in this news release and our filings with the SEC that
attempt to advise interested parties of the risks and factors that may affect
our business.
All forward-looking statements attributable to us are expressly qualified in
their entirety by this cautionary statement.
4
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
($ in
millions,
except per September 30, December 31,
share data) 2026 2025
──────────────────────────────────────────────────────────────────────────────
Assets
Current
assets:
Cash and
cash $ 118 $ 616
equivalents
Restricted 103 80
cash
Accounts
receivable, 1,389 1,599
net
Derivative 889 264
assets
Other
current 597 357
assets
Total
current 3,096 2,916
assets
Property
and
equipment:
Natural gas
and oil
properties,
successful
efforts
method
Proved
natural gas 28,827 26,606
and oil
properties
Unproved 5,523 5,478
properties
Other
property 555 509
and
equipment
Total
property 34,905 32,593
and
equipment
Less:
accumulated
depreciati… -10,423 -8,278
depletion
and
amortizati…
Property
and
equipment — 40
held for
sale,
net
Total
property
and 24,482 24,355
equipment,
net
Long-term
derivative 46 47
assets
Deferred
income tax — 168
assets
Goodwill 349 —
Intangible 1,082 —
assets, net
Other
long-term 687 801
assets
Total $ 29,742 $ 28,287
assets
Liabilities
and
stockholde…
equity
Current
liabilitie…
Accounts $ 1,179 $ 753
payable
Accrued 30 100
interest
Derivative 2 3
liabilities
Other
current 2,215 2,045
liabilities
Total
current 3,426 2,901
liabilities
Long-term 4,632 5,009
debt, net
Long-term
derivative 12 1
liabilities
Asset
retirement
obligation… 744 688
net of
current
portion
Long-term
contract 914 975
liabilities
Other
long-term 514 135
liabilities
Total 10,242 9,709
liabilities
Contingenc…
and
commitments
Stockholde…
equity:
Common
stock,
$0.01 par
value,
450,000,000
shares 2 2
authorized:
230,944,097
and
239,249,874
shares
issued
Additional
paid-in 13,787 13,746
capital
Retained 5,711 4,830
earnings
Total
stockholde… 19,500 18,578
equity
Total
liabilities
and $ 29,742 $ 28,287
stockholde…
equity
5
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
($
in
m…
e…
p… Thr… Nine
s… Mon… Mon…
d… End… End…
R… Sep… Sep…
a… 30, 30,
o… 2026 20… 2026 20…
──────────────────────────────────────────────────────────────────────────────
N…
g…
o… $ 1,… $ 1,8… $ 7,… $ 6,1…
a…
N…
M… 927 666 2,… 2,3…
G…
on 464 451 784 314
d…
G…
(…
on 14 -1 13 3
s…
of
a…
T…
r… 3,… 2,9… 10… 8,8…
a…
o…
O…
e…
P… 168 169 521 467
G…
p… 678 608 2,… 1,7…
a…
t…
S…
a…
ad 61 48 181 145
v…
t…
E… 19 3 49 30
M… 888 659 2,… 2,3…
G…
a… 50 45 163 132
a…
S…
a…
o… 3 5 12 5
t…
c…
D…
d… 750 741 2,… 2,2…
a…
a…
O…
o…
e… 29 -37 42 23
(…
n…
T…
o… 2,… 2,2… 7,… 7,1…
e…
I…
f… 640 725 2,… 1,7…
o…
O…
i…
(…
I… -44 -57 -1… -176
e…
G…
on
p…
e… — 1 37 4
or
e…
of
d…
O…
i… 12 17 46 41
n…
T…
o… -32 -39 -63 -131
i…
(…
I…
b… 608 686 2,… 1,5…
i…
t…
I…
t… 89 139 569 329
e…
N… $ 519 $ 547 $ 2,… $ 1,2…
i…
E…
p…
c…
s…
B… $ 2.… $ 2.30 $ 9.… $ 5.34
D… $ 2.… $ 2.28 $ 9.… $ 5.27
W…
a…
c…
s…
o…
(…
t…
B… 23… 238… 23… 236…
D… 231… 23… 236… 24…
6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
($
in
m… Thr… Nine
C… Mon… Mon…
f… End… End…
f… Sep… Sep…
o… 30, 30,
a… 2026 20… 2026 20…
──────────────────────────────────────────────────────────────────────────────
N… $ 519 $ 547 $ 2,… $ 1,2…
i…
A…
to
r…
n…
i…
to
n…
c…
p…
by
o…
a…
D…
d… 750 741 2,… 2,2…
a…
a…
D…
i… 85 186 550 320
t…
e…
D…
g… -4… -451 -7… -314
n…
C…
r…
on 297 131 205 102
d…
s…
n…
S… 11 12 33 34
c…
(…
l…
on -14 1 -13 -3
s…
of
a…
C… -39 -47 -1… -171
a…
G…
on
p…
e… — -1 -37 -4
or
e…
of
d…
O… 3 10 37 26
C…
in
a… 29 72 438 142
a…
l…
N…
c…
p… 1,1… 1,… 4,6… 3,…
by
o…
a…
C…
f…
f…
i…
a…
C… -8… -775 -2… -1,…
e…
B…
c… -1… — -1… —
n…
P… -2 -69 -9 -69
a…
R…
of 45 — 161 116
d…
c…
C…
to -1 -5 -2 -14
i…
D…
f… — — 10 —
i…
P…
f…
d…
of 33 4 76 19
p…
a…
e…
N…
c…
u… -2… -845 -3… -1,…
in
i…
a…
C…
f…
f…
f…
a…
P…
f… 1,… — 1,… 825
C…
F…
P…
on -1… — -1… -825
C…
F…
P…
on
T… -1… — -1… —
E…
C…
F…
P…
f…
i…
of 499 — 499 —
s…
n…
n…
P…
f… — — 15 22
w…
e…
D…
i…
a… -4 -11 -4 -11
o…
f…
c…
C…
p…
to
r… -320 -1 -900 -1…
a…
r…
c…
s…
C…
p…
to — -110 -1… -663
p…
d…
C…
p…
f… -1… -349 -4… -628
c…
s…
d…
P…
f…
a… 86 — 86 —
r…
f…
N…
c…
p…
by 438 -471 -1… -1,…
(…
i…
f…
a…
N…
i…
(…
in
c… -5… -115 -4… 296
c…
e…
a…
r…
c…
C…
c…
e…
a…
r… 764 806 696 395
c…
b…
of
p…
C…
c…
e…
a…
r… $ 221 $ 691 $ 221 $ 691
c…
e…
of
p…
C…
a… $ 118 $ 613 $ 118 $ 613
c…
e…
R… 103 78 103 78
c…
T…
c…
c…
e… $ 221 $ 691 $ 221 $ 691
a…
r…
c…
7
NATURAL GAS, OIL AND NGL PRODUCTION AND AVERAGE
SALES PRICES (unaudited)
T…
M…
E…
S…
3…
2…
──────────────────────────────────────────────────────────────────────────────
N… O… N… T…
G…
M… M… M… M…
p… $… p… $… p… $… p… $…
d… d… d… d…
… 3… 2… — — — — … …
… 2… 2… — — — — … …
…
… 1… 2… 17 … … … … …
…
… 6… 2… 17 … … … … …
…
… 2… …
…
…
…
… 2… … … …
…
…
…
T…
M…
E…
S…
3…
2…
──────────────────────────────────────────────────────────────────────────────
N… O… N… T…
G…
M… M… M… M…
p… $… p… $… p… $… p… $…
d… d… d… d…
… 3… 2… — — — — … …
… 2… 2… — — — — … …
…
… 9… 2… 17 … … … … …
…
… 6… 2… 17 … … … … …
…
… 3… …
…
…
…
… 2… … … …
…
…
…
N…
M…
E…
S…
3…
2…
──────────────────────────────────────────────────────────────────────────────
N… O… N… T…
G…
M… M… M… M…
p… $… p… $… p… $… p… $…
d… d… d… d…
… 3… 3… — — — — … …
… 2… 3… — — — — … …
…
… 1… 3… 15 … … … … …
…
… 6… 3… 15 … … … … …
…
… 3… …
…
…
…
… 3… … … …
…
…
…
8
N…
M…
E…
S…
3…
2…
──────────────────────────────────────────────────────────────────────────────
N… O… N… T…
G…
M… M… M… M…
p… $… p… $… p… $… p… $…
d… d… d… d…
… 2… 3… — — — — … …
… 2… 2… — — — — … …
…
… 9… 3… 16 … … … … …
…
… 6… 3… 16 … … … … …
…
… 3… …
…
…
…
… 3… … … …
…
…
…
CAPITAL EXPENDITURES ACCRUED (unaudited)
($ in
millions) Three Nine
Drilling Months Months
and Ended Ended
completi… September September
capital 30, 30,
expendit… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Haynesvi… $ 325 $ 355 $ 956 $ 989
Northeast 173 150 421 370
Appalach…
Southwest 145 114 490 417
Appalach…
Total
drilling
and 643 619 1,867 1,776
completi…
capital
expendit…
Non-dril…
and 106 67 364 209
completi…
- field
Non-dril…
and
completi… 45 49 130 139
-
corporate
Total
capital $ 794 $ 735 $ 2,361 $ 2,124
expendit…
9
NON-GAAP FINANCIAL MEASURES
As a supplement to the financial results prepared in accordance with U.S. GAAP,
Expand Energy’s quarterly earnings releases contain certain financial measures
that are not prepared or presented in accordance with U.S. GAAP. These non-GAAP
financial measures include Adjusted Net Income, Adjusted Diluted Earnings Per
Common Share, Adjusted EBITDAX, Marketing Adjusted EBITDA, Free Cash Flow,
Adjusted Free Cash Flow and Net Debt. A reconciliation of each financial measure
to its most directly comparable GAAP financial measure is included in the tables
below. Management believes these adjusted financial measures are a meaningful
adjunct to earnings and cash flows calculated in accordance with GAAP because
(a) management uses these financial measures to evaluate the Company’s trends
and performance, (b) these financial measures are comparable to estimates
provided by securities analysts, and (c) items excluded generally are one-time
items or items whose timing or amount cannot be reasonably estimated.
Accordingly, any guidance provided by the Company generally excludes information
regarding these types of items.
Expand Energy's definitions of each non-GAAP measure presented herein are
provided below. Because not all companies or securities analysts use identical
calculations, Expand Energy’s non-GAAP measures may not be comparable to
similarly titled measures of other companies or securities analysts.
Adjusted Net Income: Adjusted Net Income is defined as net income (loss)
adjusted to exclude unrealized (gains) losses on derivatives, separation and
other termination costs, (gains) losses on sales of assets, and certain items
management believes affect the comparability of operating results, less a tax
effect using applicable rates. Expand Energy believes that Adjusted Net Income
facilitates comparisons of the Company's period-over-period performance, by
excluding the impact of items that, in the opinion of management, do not reflect
Expand Energy's core operating performance. Adjusted Net Income should not be
considered an alternative to, or more meaningful than, net income (loss) as
presented in accordance with GAAP.
Adjusted Diluted Earnings Per Common Share: Adjusted Diluted Earnings Per Common
Share is defined as diluted earnings (loss) per common share adjusted to exclude
the per diluted share amounts attributed to unrealized (gains) losses on
derivatives, separation and other termination costs, (gains) losses on sales of
assets, and certain items management believes affect the comparability of
operating results, less a tax effect using applicable rates. Expand Energy
believes that Adjusted Diluted Earnings Per Common Share facilitates comparisons
of the Company's period-over-period performance, by excluding the impact of
items that, in the opinion of management, do not reflect Expand Energy's core
operating performance. Adjusted Diluted Earnings Per Common Share should not be
considered an alternative to, or more meaningful than, earnings (loss) per
common share as presented in accordance with GAAP.
Adjusted EBITDAX: Adjusted EBITDAX is defined as net income (loss) before
interest expense, income tax expense (benefit), depreciation, depletion and
amortization expense, exploration expense, unrealized (gains) losses on
derivatives, separation and other termination costs, (gains) losses on sales of
assets, and certain items management believes affect the comparability of
operating results. Adjusted EBITDAX is presented as it provides investors an
indication of the Company's ability to internally fund exploration and
development activities and service or incur debt. Adjusted EBITDAX should not be
considered an alternative to, or more meaningful than, net income (loss) as
presented in accordance with GAAP.
Marketing Adjusted EBITDA: Marketing Adjusted EBITDA is defined as Marketing
segment income (loss) from operations, adjusted to eliminate intersegment
gathering, processing and transportation fees included in Marketing segment
income from operations that are eliminated in consolidation, exclude unrealized
gains and losses on Marketing derivatives, and add back depreciation and
amortization attributable to the Marketing segment. Marketing Adjusted EBITDA is
presented as a performance measure because management believes it provides
investors with additional information regarding the operating performance of the
Marketing segment after giving effect to the elimination of intersegment
gathering, processing and transportation fees and excluding the impact of
unrealized gains and losses on Marketing derivatives, and facilitates
comparisons of the Marketing segment’s operating performance across periods.
Marketing Adjusted EBITDA should not be considered an alternative to, or more
meaningful than, Marketing segment income (loss) from operations as presented in
accordance with GAAP.
Free Cash Flow: Free Cash Flow is defined as net cash provided by operating
activities less cash capital expenditures. Free Cash Flow is a liquidity measure
that provides investors additional information regarding the Company's ability
to service or incur debt and return cash to shareholders. Free Cash Flow should
not be considered an alternative to, or more meaningful than, net cash provided
by (used in) operating activities, or any other measure of liquidity presented
in accordance with GAAP.
10
Adjusted Free Cash Flow: Adjusted Free Cash Flow is defined as net cash provided
by operating activities less cash capital expenditures and cash contributions to
investments, adjusted to exclude certain items management believes affect the
comparability of operating results. Adjusted Free Cash Flow is a liquidity
measure that provides investors additional information regarding the Company's
ability to service or incur debt and return cash to shareholders. Adjusted Free
Cash Flow should not be considered an alternative to, or more meaningful than,
net cash provided by (used in) operating activities, or any other measure of
liquidity presented in accordance with GAAP.
Net Debt: Net Debt is defined as GAAP total debt excluding premiums, discounts,
and deferred issuance costs, as well as secured borrowings under the Twin Eagle
receivable purchase agreement less cash and cash equivalents. Net Debt is useful
to investors as a widely understood measure of liquidity and leverage, but this
measure should not be considered as an alternative to, or more meaningful than,
total debt presented in accordance with GAAP.
Net debt to Adjusted EBITDAX: Net debt to Adjusted EBITDAX is a non-GAAP measure
and is defined as Net Debt divided by an annualized Adjusted EBITDAX measure on
a trailing twelve month calculation. Management uses Net Debt to Adjusted
EBITDAX to assess liquidity and leverage. The Company believes this measure is
useful to investors because it provides supplemental information to investors
regarding its ability internally fund exploration and development activities and
service or incur debt. However, this measure should not be considered as an
alternative to, or more meaningful than, total debt or net income (loss) as
presented in accordance with GAAP.
11
RECONCILIATION OF NET INCOME TO ADJUSTED NET
INCOME (unaudited)
Three Nine
Mont… Months
($ Ended Ended
in Sept… Septe…
mil… 2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net
inc… $ 519 $ 547 $ 2,200 $ 1,266
(GA…
Adj…
Unr…
gai… -153 -309 -585 -182
on
der…
Sep…
and
oth… 3 5 12 5
ter…
cos…
(Ga…
los…
on -14 1 -13 -3
sal…
of
ass…
Oth…
ope…
exp… 22 -40 35 18
(in…
net
Gai…
on
pur…
exc… — -1 -37 -4
or
ext…
of
debt
Con… -39 -47 -137 -171
amo…
Oth… -3 -8 -21 -20
Def…
inc… -37 — -37 —
tax
ben…
Tax
eff… 40 86 161 77
of
adj…
Adj…
net $ 338 $ 234 $ 1,578 $ 986
inc…
(No…
The three- and nine-month periods ended September 30, 2026 and
September 30, 2025 include a tax effect attributed to the reconciling
(a) adjustments using a statutory rate of 22%.
──────────────────────────────────────────────────────────────────────────────
RECONCILIATION OF EARNINGS PER COMMON SHARE TO
ADJUSTED DILUTED EARNINGS PER COMMON SHARE
(unaudited)
Three Nine
Months Months
Ended Ended
September September
($/shar… 2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Earnings
per
common $ 2.24 $ 2.30 $ 9.30 $ 5.34
share
(GAAP)
Effect
of — -0.02 -0.01 -0.07
dilutive
securit…
Diluted
earnings
per $ 2.24 $ 2.28 $ 9.29 $ 5.27
common
share
(GAAP)
Adjustm…
Unreali…
gains on -0.66 -1.30 -2.47 -0.77
derivat…
Separat…
and
other 0.01 0.02 0.05 0.02
termina…
costs
(Gains)
losses
on sales -0.06 — -0.06 -0.01
of
assets
Other
operati…
expense 0.09 -0.17 0.15 0.08
(income…
net
Gains on
purchas…
exchang… — — -0.16 -0.02
or
extingu…
of debt
Contract -0.17 -0.19 -0.58 -0.71
amortiz…
Other -0.01 -0.03 -0.09 -0.08
Deferred
income -0.15 — -0.15 —
tax
benefit
Tax
effect 0.17 0.36 0.68 0.32
of
adjustm…
Adjusted
diluted
earnings
per $ 1.46 $ 0.97 $ 6.66 $ 4.10
common
share
(Non-GA…
The three- and nine-month periods ended September 30, 2026 and
September 30, 2025 include a tax effect attributed to the reconciling
(a) adjustments using a statutory rate of 22%.
──────────────────────────────────────────────────────────────────────────────
12
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDAX
(unaudited)
Three Nine
Months Months
Ended Ended
($ in September September
million… 2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net
income $ 519 $ 547 $ 2,200 $ 1,266
(GAAP)
Adjustm…
Interest 44 57 146 176
expense
Income
tax 89 139 569 329
expense
Depreci…
depleti… 750 741 2,183 2,221
and
amortiz…
Explora… 19 3 49 30
Unreali…
gains on -153 -309 -585 -182
derivat…
Separat…
and
other 3 5 12 5
termina…
costs
(Gains)
losses
on sales -14 1 -13 -3
of
assets
Other
operati…
expense 22 -40 35 18
(income…
net
Contract -39 -47 -137 -171
amortiz…
Gains on
purchas…
exchang… — -1 -37 -4
or
extingu…
of debt
Other -11 -14 -42 -32
Adjusted
EBITDAX $ 1,229 $ 1,082 $ 4,380 $ 3,653
(Non-GA…
RECONCILIATION OF MARKETING SEGMENT INCOME FROM
OPERATIONS TO MARKETING ADJUSTED EBITDA
(unaudited)
Three Nine
Months Months
Ended Ended
($ in September September
millions) 2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Marketing
segment
income $ 94 $ 62 $ 371 $ 184
from
operatio…
(GAAP)
Interseg…
GP&T fees
eliminat… -52 -55 -214 -189
in
consolid…
Unrealiz…
gains on -14 — -14 —
marketing
derivati…
Deprecia…
and 7 — 7 —
amortiza…
Marketing
Adjusted $ 35 $ 7 $ 150 $ -5
EBITDA
(Non-GAA…
13
RECONCILIATION OF NET CASH PROVIDED BY OPERATING
ACTIVITIES TO ADJUSTED FREE CASH FLOW (unaudited)
Three Nine
Months Months
Ended Ended
($ in September Septemb…
million… 2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net cash
provided
by $ 1,177 $ 1,201 $ 4,675 $ 3,619
operati…
activit…
(GAAP)
Cash
capital -838 -775 -2,298 -1,995
expendi…
Free
cash 339 426 2,377 1,624
flow
(Non-GA…
Cash
distrib… — — 10 —
from
investm…
Cash
contrib… -1 -5 -2 -14
to
investm…
Cash
paid for 16 2 16 82
merger
expenses
Adjusted
free
cash $ 354 $ 423 $ 2,401 $ 1,692
flow
(Non-GA…
RECONCILIATION OF TOTAL DEBT TO NET DEBT
(unaudited)
September 30, December 31,
($ in millions) 2026 2025
──────────────────────────────────────────────────────────────────────────────
Total debt $ 4,632 $ 5,009
(GAAP)
Premiums,
discounts and 56 16
issuance costs
on debt
Principal 4,688 5,025
amount of debt
Twin Eagle
receivable 86 —
purchase
agreement
Principal
amount of debt 4,774 5,025
and other
borrowings
Cash and cash -118 -616
equivalents
Net debt $ 4,656 $ 4,409
(Non-GAAP)
14
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDAX
TRAILING TWELVE MONTHS (unaudited)
Three Three Three Three
Months Months Months Months
Ended Ended Ended Ended
Septem… June March Decemb… Traili…
30, 30, 31, 31, Twelve
2026 2026 2026 2025 Months
──────────────────────────────────────────────────────────────────────────────
($ in
milli…
Net
income $ 519 $ 522 $ 1,159 $ 553 $ 2,753
(GAAP)
Adjus…
Inter… 44 43 59 59 205
expen…
Income
tax 89 150 330 134 703
expen…
Depre…
deple… 750 722 711 759 2,942
and
amort…
Explo… 19 16 14 16 65
Unrea…
gains -153 -153 -279 -179 -764
on
deriv…
Separ…
and
other 3 — 9 — 12
termi…
costs
(Gain…
losses
on -14 — 1 68 55
sales
of
assets
Other
opera…
expen… 22 3 10 11 46
(inco…
net
Impai… — — — 37 37
Gains
on
purch…
excha… — -37 — — -37
or
extin…
of
debt
Contr… -39 -68 -30 -32 -169
amort…
Other -11 -15 -16 -1 -43
Adjus…
EBITD… $ 1,229 $ 1,183 $ 1,968 $ 1,425 $ 5,805
(Non-…
NET DEBT TO ADJUSTED EBITDAX (unaudited)
($ in millions) September 30, 2026
──────────────────────────────────────────────────────────────────────
Net debt (Non-GAAP) $ 4,656
Adjusted EBITDAX (Non-GAAP)(a) $ 5,805
Net debt to Adjusted EBITDAX (Non-GAAP) 0.8
(a) Adjusted EBITDAX using a trailing twelve month calculation.
15