Expand Energy Credit Agreement
Oklahoma City-based Expand Energy has secured a powerful new financial tool. According to a new regulatory filing, the nation’s largest natural gas exploration firm entered into an amended and restated credit agreement on Sept. 30, 2025, with a total capacity of up to $4.5 billion.
The filing lists JPMorgan Chase Bank, N.A. as the administrative agent, with multiple lenders and issuing banks participating. Initial commitments total $3.5 billion, but Expand has incremental capacity for another $1 billion, giving it significant financial flexibility.
The Credit Facility matures five years from Sept. 30, 2025.
Debt and Capitalization Standards
The agreement requires Expand to maintain a debt-to-capitalization ratio not to exceed 65%. This means the company must balance its total indebtedness against its equity base to stay in compliance.
Borrowings can be taken as base rate loans or term SOFR loans, at the company’s discretion. Term SOFR loans carry an interest rate of SOFR plus 1.125% to 2.00%, depending on Expand’s index debt rating.
Interest is payable quarterly for base rate loans and at the end of each period for SOFR loans. Expand retains the option to prepay amounts without penalty, other than standard breakage fees. Importantly, prepaid loans can be re-borrowed prior to maturity.
Purpose of the Credit Facility
Expand stated in its filing that the proceeds will be used for:
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Paying fees and expenses tied to the transaction and refinancing its prior facility.
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Working capital needs across operations.
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General corporate purposes, including capital expenditures to support drilling and infrastructure growth.
This move aligns with Expand’s ongoing strategy of funding oil and gas development while preserving flexibility for growth projects in a volatile market.
Why It Matters
Energy companies are racing to secure financing to meet rising demand from data centers, industrial growth, and global natural gas exports. Expand Energy’s new agreement signals investor confidence in the company’s ability to maintain strong output while managing debt responsibly.
By locking in $4.5 billion in available credit, Expand can continue its drilling programs and maintain its position as a leading U.S. natural gas producer.
