Even with a net loss of nearly $400 million in the fourth quarter, it was still a strong quarter for Expand Energy Corporation.
“The global need for reliable, affordable, lower carbon energy has never been greater. Our strong fourth quarter results and 2025 outlook clearly demonstrate, as the nation’s largest gas producer, we are ready to answer the call and expand opportunity for consumers and investors alike,” said Nick Dell’Osso, Expand Energy’s President and Chief Executive Officer.
The Oklahoma City energy company’s operating activities produced $382 million net cash during the quarter but also experienced a net loss of $399 million or $1.72 per share. Its adjusted net income totaled $131 million or 55 cents a share. Adjusted EBITDAX was $964 million and energy production was 6.4 Bcfe/d net of which 91% was natural gas.
The company’s operations resulted in a 16th straight quarter paying a dividend. It will be $0.575 per common share to be paid in March.
“Our focus on integration and operational execution continues to deliver, allowing us to capture 80% of our $500 million synergy target in 2025 as we drive to lower our breakeven costs and more efficiently reach markets in need,” continued Dell’Osso.
“Importantly, our capital plan positions us to continue our strategy to build productive capacity, positioning the company to efficiently and rapidly respond with production in 2026 should market conditions warrant.”
The quarter was strong enough that Expand Energy intends to increase its expected synergy capture to $400 million in 2025 with a total target of $500 million in annual synergies expected by the end of 2026.
In the fourth quarter, Expand Energy operated an average of twelve rigs to drill 44 wells and turned 41 wells in line, resulting in net production of approximately 6.41 Bcfe per day (91% natural gas). The company expects to run the same number of rigs in 2025 and invest nearly $2.7 billion yielding an estimated daily production of about 7.1 Bcfe/d.
Expand intends to increase its number of running rigs to 15 in the second half of the year which it believes will increase production from a year-end 2025 exit rate of about 7.2 Bcfe/d to about 7.5 Bcfe/d in 2026.
Expand Energy is increasing its 2025 expected annual synergy target by $175 million to approximately $400 million. The company expects to achieve the full $500 million in annual synergies by year end 2026.