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Mar 31
Chesapeake Q1 2025 Earnings Report
Expand Energy Corporation reported its first quarter 2025 financial and operating results, including a net loss of $249 million and adjusted net income of $487 million.
Key Takeaways
Expand Energy Corporation reported a net loss of $249 million for the first quarter of 2025, or $1.06 per fully diluted share. Despite the net loss, the company achieved an adjusted net income of $487 million and adjusted EBITDAX of $1,395 million. Net cash provided by operating activities was $1,096 million, and the company produced approximately 6.79 Bcfe/d net. Expand Energy was added to the S&P 500 and received an Investment Grade credit rating from Moody's, achieving a uniform Investment Grade rating from all agencies.
Net cash provided by operating activities was $1,096 million.
Net loss was $249 million, or $1.06 per fully diluted share; adjusted net income was $487 million, or $2.02 per share.
Adjusted EBITDAX was $1,395 million.
Produced approximately 6.79 Bcfe/d net (92% natural gas).
Chesapeake
Chesapeake
Chesapeake Revenue by Segment
Revenue by Segment
Natural Gas, Oil and NGL Revenue
CapyFin.comMarketing Revenue
CapyFin.comNatural Gas, Oil and NGL Derivatives Revenue
CapyFin.com Forward Guidance
Expand Energy expects to run approximately 12 rigs and invest approximately $2.7 billion in 2025, yielding an estimated daily production of approximately 7.1 Bcfe/d. The company aims to build incremental productive capacity for an additional $300 million by exiting 2025 with approximately 15 rigs, positioning for an average of 7.5 Bcfe/d in 2026 should market conditions warrant. Expand Energy is on track to capture its 2025 expected annual synergy target of approximately $400 million, with the full $500 million in annual synergies expected by year end 2026. The company plans to pay a quarterly base dividend of $0.575 per share in June 2025 and allocate $500 million to Net Debt reduction in 2025.
Positive Outlook
- Expected daily production of approximately 7.1 Bcfe/d in 2025.
- Intends to build incremental productive capacity for an additional $300 million by exiting 2025 with approximately 15 rigs.
- Positions the company to efficiently grow production to average approximately 7.5 Bcfe/d in 2026 should market conditions warrant.
- On track to capture approximately $400 million in 2025 expected annual synergy target.
- Full $500 million in annual synergies expected to be achieved by year end 2026.
Challenges Ahead
- Overcoming market volatility requires a resilient financial foundation, a deep market-connected portfolio, and low cost, efficient operations.
- 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.
- Risks from regional epidemics or pandemics and related economic turmoil, including supply chain constraints.
- The impact of inflation and commodity price volatility, including as a result of decisions made by OPEC+ and armed conflict and instability in Europe and the Middle East, along with the effects of the current global economic environment, on 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 financial flexibility due to level of indebtedness and restrictive covenants from indebtedness.
Revenue & Expenses
Visualization of income flow from segment revenue to net income