Following a move to cut $100 million in capital expenditures during the second quarter, Oklahoma City’s Expand Energy prepares to release its third quarter earnings report which will give more of an indication industry conditions.
Expand energy turned one year old this month following the merger in October 2024 of Chesapeake Energy in Oklahoma City and Southwestern Energy in Houston. The new combined firm became the largest natural gas producer in the U.S., was rebranded as Expand Energy Corporation and plans to release its third quarter earnings report after the close of marakets on October 28.
Executives will hold a conference call on October 29 at 8 a.m. Central Time where they will discuss the results.
Despite net cash of $1.322 million from operating activities in the second quarter and net income of $968 million or $4.02 per fully diluted share, Expand implemented a cut in cap-ex for the third quarter. Expand Energy operated an average of 11 rigs during the second quarter, drilling 49 wells and turning 59 wells in line, resulting in net production of approximately 7.20 Bcfe per day (92% natural gas).
Nick Dell’Osso, Expand Energy’s President and Chief Executive Officer stated when the second quarter earnings were released, “We are delivering more for less, outperforming every expectation set when we announced our merger, including an approximate 50% increase to run-rate synergies. Importantly, our outperformance is repeatable, achieving approximately 30% more free cash flow in 2025 and approximately 20% more in 2026 compared to our expectations at the beginning of the year. This significant improvement further demonstrates how our culture of continuous improvement creates value for our shareholders.”