EXPAND ENERGY Corp

Expand Energy Corporation is the largest independent natural gas producer in the U.S., based on net daily production, with operations located in Louisiana and Texas in the Haynesville and Bossier Shales, in Pennsylvania in the Marcellus Shale, and in West Virginia and Ohio in the Marcellus and Utica Shales. The company competes with both major integrated and other independent natural gas and oil companies, as well as pipeline marketing affiliates and other marketing companies, and some competitors may have larger financial and other resources. Expand Energy believes its technological expertise, combined with its exploration, land, drilling and production capabilities and the experience of its management team, enables it to compete effectively.

Primary competitors named in the filing include both major integrated and other independent natural gas and oil companies, as well as pipeline marketing affiliates and other marketing companies. The company states that it is the largest independent natural gas producer in the U.S., based on net daily production, and believes it is uniquely positioned to deliver affordable, lower-carbon energy to meet growing domestic and international demand while creating sustainable value for stakeholders. Expand Energy also notes that it joined the S&P 500 index in 2025.

The company generates revenue through the sale of natural gas, oil and natural gas liquids production, with natural gas, oil and NGL production sold to purchasers under index contracts or daily spot price contracts. Marketing operations provide natural gas, oil and NGL marketing services including commodity price structuring, securing and negotiating of gathering, hauling, storage, processing and transportation services, contract administration and nomination services for the company and other interest owners in Expand Energy-operated wells. The company also operates drilling rigs and provides certain oilfield products and services, principally serving the company's E&P operations through vertical integration.

For the year ended December 31, 2025, total production was 2,622 Bcfe, consisting of 2,409 Bcf of natural gas, 5.9 MMBbl of oil, and 29.6 MMBbl of NGL. The Haynesville area produced 1,095 Bcf of natural gas, Northeast Appalachia produced 958 Bcf of natural gas, and Southwest Appalachia produced 356 Bcf of natural gas, 5.9 MMBbl of oil, and 29.6 MMBbl of NGL. The average sales price of production for natural gas was $3.08 per Mcf, for oil was $54.47 per Bbl, and for NGL was $24.48 per Bbl, resulting in a total average sales price of $3.23 per Mcfe, all before the effect of hedging. Production expenses were $0.24 per Mcfe and gathering, processing and transportation expenses were $0.91 per Mcfe.

As of December 31, 2025, the company held a working interest in approximately 6,600 gross natural gas and oil wells, of which substantially all were classified as productive natural gas wells. During 2025, the company completed 272 gross (202 net) wells as operator and participated in another 39 gross (1 net) well completed by other operators, and operates approximately 99% of current daily production volumes. As of December 31, 2025, the company had 115 gross (88 net) wells in the process of being drilled or completed. Total proved reserves as of December 31, 2025 were 22,575 Bcf of natural gas, 58.8 MMBbl of oil, and 491.9 MMBbl of NGL, for a total of 25,880 Bcfe, with Haynesville, Northeast Appalachia and Southwest Appalachia accounting for approximately 23%, 42% and 35%, respectively, of estimated proved reserves by volume.

On October 1, 2024, the company completed the Southwestern Merger, creating a premier energy company. Since completing the merger, the company reduced total debt by approximately $1.2 billion and upsized its 2025 Credit Facility capacity to $3.5 billion. In 2025, the company joined the S&P 500 index and returned approximately $865 million to shareholders through dividends and share repurchases. The company also redeemed its 4.95% Senior Notes due 2025 in January 2025 for $500 million, redeemed its 5.50% Senior Notes due 2026 in March 2025 for $500 million, and redeemed its 6.75% Senior Notes due 2029 in December 2025 for $200 million.

Total revenues for the year ended December 31, 2025 were $8,486 million, compared to $4,710 million for the year ended December 31, 2024. Net income was $1,478 million for 2025 compared to $1,114 million for 2024. Diluted earnings per share was $6.04 for 2025 versus $5.54 for 2024. Net cash provided by operating activities was $3,803 million for 2025 compared to $2,145 million for 2024.

The company's business strategy includes participating in the global LNG value chain, which is dependent, in part, on the growing U.S. LNG export market. The company may seek to more directly participate in the LNG value chain through direct marketing arrangements with LNG export facilities and/or end users. The company also intends to continue to invest in projects designed to reduce the environmental impact of its production activities.

The company plans to allocate its human resources and capital expenditures to projects it believes offer the highest cash return on capital invested, to deploy leading drilling and completion technology throughout its portfolio, and to take advantage of acquisition and divestiture opportunities to strengthen its portfolio. The company continues to focus on improving margins through operating efficiencies, marketing and commercial efforts and financial discipline and improving its safety and sustainability performance.

The filing does not contain specific margin trajectory or cost structure evolution targets.

As of December 31, 2025, the company had delivery commitments for gas and NGLs of approximately 7,800 Bcf and 42 MMBbls over the next 20 and 17 years, respectively, and delivery commitments of approximately 4 MMBbls of oil during 2026. The company expects to fulfill these commitments primarily with production from its proved developed reserves. The company had approximately 1,600 employees as of December 31, 2025.

The company's capital allocation strategy includes returning approximately $865 million to shareholders through dividends and share repurchases in 2025. The company invested approximately $658 million to convert 1,585 Bcfe of PUDs to proved developed reserves in 2025. The future net revenue attributable to estimated PUDs assumes the company will expend approximately $4.2 billion to develop these reserves, with $2,044 million in 2026, $1,379 million in 2027, $700 million in 2028, $27 million in 2029 and $13 million in 2030.

The company faces structural headwinds from the volatility of natural gas, oil and NGL prices, which are affected by general economic and business conditions, as well as increased demand for alternative fuels and electric vehicles. Conservation measures and technological advances could reduce demand for natural gas and oil. The company also faces risks from the growing U.S. LNG export market, a highly regulated and capital-intensive industry with inherent commercial and regulatory risks, and could be materially and adversely impacted by a deterioration in the U.S. LNG export industry.

The company faces constraints from extensive governmental regulation, which can change and could adversely impact its business, including costs to comply with environmental, health and safety regulations and initiatives. The completion of the Southwestern Merger in 2024 triggered an annual limitation on the utilization of the company's tax attributes, reducing its ability to offset future taxable income, which may result in an increase to income tax liabilities. Additionally, trading in the company's common stock, additional issuance of common stock, and certain other stock transactions could lead to an additional, potentially more restrictive, annual limitation.

The most material risk is the extreme volatility of natural gas, oil and NGL prices, which directly impacts revenues, profitability, liquidity, and the carrying value of properties, as lower prices for an extended period could require write-downs of asset carrying values. The company's business strategy includes participating in the global LNG value chain, exposing it to commercial risks associated with global LNG markets, and a deterioration in the U.S. LNG export industry could materially and adversely impact demand for natural gas. The completion of the Southwestern Merger triggered an annual limitation on the utilization of the company's tax attributes, reducing its ability to offset future taxable income, which may result in an increase to income tax liabilities, and additional stock transactions could lead to a further, more restrictive limitation. The company has significant delivery commitments of approximately 7,800 Bcf of gas and 42 MMBbls of NGLs over the next 20 and 17 years, respectively, and approximately 4 MMBbls of oil during 2026, which it expects to fulfill primarily with production from proved developed reserves, creating exposure if production falls short. The company is subject to extensive governmental regulation, including environmental regulations regarding methane emissions and hydraulic fracturing, which could increase compliance costs and restrict operations.

Management's message emphasizes that Expand Energy is the largest independent natural gas producer in the U.S., focused on responsibly developing an abundant supply of natural gas, oil and NGL to expand energy access for all. Management states that since completing the merger with Southwestern, the company has continued to focus on strengthening its balance sheet by reducing total debt by approximately $1.2 billion and upsizing its 2025 Credit Facility capacity to $3.5 billion. Management highlights that in 2025, the company joined the S&P 500 index and returned approximately $865 million to shareholders through dividends and share repurchases. The strategic priorities emphasized for the period ahead include creating resilient shareholder value through responsible development of significant resource plays, continuing to be a leading provider of natural gas to growing markets, improving margins through operating efficiencies, marketing and commercial efforts and financial discipline, and improving safety and sustainability performance.