Chesapeake Q3 2024 Earnings Report
Key Takeaways
Expand Energy Corporation reported strong third quarter results with net cash provided by operating activities of $422 million and adjusted EBITDAX of $365 million. The company raised its annual synergy target by $100 million and expects to achieve approximately $225 million in synergies in 2025 and approximately $500 million in annual synergies by year end 2027.
Net cash provided by operating activities was $422 million.
Net loss was $114 million, or $0.85 per fully diluted share; adjusted net income of $22 million, or $0.16 per share.
Adjusted EBITDAX was $365 million.
Production was approximately 2.65 bcf/d net (100% natural gas).
Chesapeake
Chesapeake
Chesapeake Revenue by Segment
Forward Guidance
Expand Energy expects to achieve approximately $225 million in synergies in 2025 and to achieve the full $500 million in annual synergies by year end 2027. In 2025, at current market conditions, the company expects to run 10 to 12 rigs and invest approximately $2.7 billion yielding an estimated daily production of approximately 7 bcfe per day.
Positive Outlook
- Expected synergies of approximately $225 million in 2025.
- Targeting $500 million in annual synergies by year end 2027.
- Plans to run 10 to 12 rigs in 2025.
- Capital expenditure of approximately $2.7 billion in 2025.
- Estimated daily production of approximately 7 bcfe per day in 2025.
Challenges Ahead
- Expects to drop two rigs in the first quarter of 2025.
- Net loss of $114 million
- Plans to reduce net debt by $500 million annually
- Anticipates 75% of remaining free cash flow to be distributed as market conditions warrant
- Remaining free cash flow would be maintained on the balance sheet