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Sep 30, 2024
Chesapeake Q3 2024 Earnings Report
Expand Energy reported third quarter results, provided preliminary 2025 capital and operating plan, and announced enhanced capital return framework.
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
Revenue by Segment
Natural Gas, Oil and NGL Revenue
CapyFin.comMarketing Revenue
CapyFin.com 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
Revenue & Expenses
Visualization of income flow from segment revenue to net income