Expand Energy — Jul 29, 2025 release

4 CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) ($ in millions, except per share data) June 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 731  $ 317  Restricted cash 75  78  Accounts receivable, net 1,074  1,226  Derivative assets 46  84  Other current assets 346  292  Total current assets 2,272 1,997 Property and equipment: Natural gas and oil properties, successful efforts method Proved natural gas and oil properties 24,755  23,093  Unproved properties 5,563  5,897  Other property and equipment 679  654  Total property and equipment 30,997  29,644  Less: accumulated depreciation, depletion and amortization (6,825) (5,362) Total property and equipment, net 24,172  24,282  Long-term derivative assets 13  1  Deferred income tax assets 457  589  Other long-term assets 854  1,025  Total assets $ 27,768  $ 27,894  Liabilities and stockholders' equity Current liabilities: Accounts payable $ 747  $ 777  Current maturities of long-term debt, net —  389  Accrued interest 107  100  Derivative liabilities 155  71  Other current liabilities 1,915  1,786  Total current liabilities 2,924  3,123  Long-term debt, net 5,122  5,291  Long-term derivative liabilities 85  68  Asset retirement obligations, net of current portion 513  499  Long-term contract liabilities 1,083  1,227  Other long-term liabilities 104  121  Total liabilities 9,831  10,329  Contingencies and commitments Stockholders' equity: Common stock, $0.01 par value, 450,000,000 shares authorized: 237,437,223 and 231,769,886 shares issued 2  2  Additional paid-in capital 13,716  13,687  Retained earnings 4,219  3,876  Total stockholders' equity 17,937  17,565  Total liabilities and stockholders' equity $ 27,768  $ 27,894  5 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 ($ in millions, except per share data) Revenues and other: Natural gas, oil and NGL $ 2,021  $ 378  $ 4,321  $ 967  Marketing 788  136  1,698  448  Natural gas, oil and NGL derivatives 877  (11) (137) 161  Gains on sales of assets 4  2  4  10  Total revenues and other 3,690  505  5,886  1,586  Operating expenses: Production 151  49  298  108  Gathering, processing and transportation 563  154  1,126  327  Severance and ad valorem taxes 49  18  97  47  Exploration 20  3  27  5  Marketing 791  141  1,710  464  General and administrative 40  47  87  94  Separation and other termination costs —  23  —  23  Depreciation, depletion and amortization 769  348  1,480  747  Other operating expense, net 38  16  60  33  Total operating expenses 2,421  799  4,885  1,848  Income (loss) from operations 1,269  (294) 1,001  (262) Other income (expense): Interest expense (60) (20) (119) (39) Gains (losses) on purchases, exchanges or extinguishments of debt 3  (2) 3  (2) Other income, net 16  21  24  41  Total other income (expense) (41) (1) (92) —  Income (loss) before income taxes 1,228  (295) 909  (262) Income tax expense (benefit) 260  (68) 190  (61) Net income (loss) $ 968  $ (227) $ 719  $ (201) Earnings (loss) per common share: Basic $ 4.07  $ (1.73) $ 3.04  $ (1.53) Diluted $ 4.02  $ (1.73) $ 2.99  $ (1.53) Weighted average common shares outstanding (in thousands): Basic 237,973  131,168  236,213  131,030  Diluted 240,560 131,168 240,628 131,030 6 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)   Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2025 2024 2025 2024 Cash flows from operating activities: Net income (loss) $ 968  $ (227) $ 719  $ (201) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation, depletion and amortization 769  348  1,480  747  Deferred income tax expense (benefit) 171  (68) 134  (61) Derivative (gains) losses, net (877) 11  137  (161) Cash receipts (payments) on derivative settlements, net 16  260  (29) 488  Share-based compensation 13  10  22  19  Gains on sales of assets (4) (2) (4) (10) Contract amortization (72) —  (124) —  (Gains) losses on purchases, exchanges or extinguishments of debt (3) 2  (3) 2  Other 20  6  16  (7) Changes in assets and liabilities 321  (131) 70  (55) Net cash provided by operating activities 1,322 209 2,418 761 Cash flows from investing activities: Capital expenditures (657) (302) (1,220) (723) Receipts of deferred consideration 56  56  116  116  Contributions to investments (5) (26) (9) (45) Proceeds from divestitures of property and equipment 15 6 15 12 Net cash used in investing activities (591) (266) (1,098) (640) Cash flows from financing activities: Proceeds from Credit Facility 100  —  825  —  Payments on Credit Facility (100) —  (825) —  Proceeds from warrant exercise 1  1  22  1  Debt issuance and other financing costs —  (4) —  (4) Cash paid to repurchase and retire common stock (99) —  (99) —  Cash paid to purchase debt (117) — (553) — Cash paid for common stock dividends (137) (99) (279) (176) Net cash used in financing activities (352) (102) (909) (179) Net increase (decrease) in cash, cash equivalents and restricted cash 379  (159) 411 (58) Cash, cash equivalents and restricted cash, beginning of period 427 1,254 395  1,153  Cash, cash equivalents and restricted cash, end of period $ 806  $ 1,095  $ 806  $ 1,095  Cash and cash equivalents $ 731  $ 1,019  $ 731  $ 1,019  Restricted cash 75 76 75 76 Total cash, cash equivalents and restricted cash $ 806  $ 1,095  $ 806  $ 1,095  7 NATURAL GAS, OIL AND NGL PRODUCTION AND AVERAGE SALES PRICES (unaudited) Three Months Ended June 30, 2025 Natural Gas Oil NGL Total MMcf per day $/Mcf MBbl per day $/Bbl MBbl per day $/Bbl MMcfe per day $/Mcfe Haynesville 2,978  3.12  —  —  —  —  2,978  3.12  Northeast Appalachia 2,662  2.65  —  —  —  —  2,662  2.65  Southwest Appalachia 956  3.11  18  54.47  83  23.19  1,562  3.75  Total 6,596  2.93  18  54.47  83  23.19  7,202  3.08  Average NYMEX Price 3.44  63.74  Average Realized Price (including realized derivatives) 2.98  55.89  23.08  3.14  Three Months Ended June 30, 2024 Natural Gas Oil NGL Total MMcf per day $/Mcf MBbl per day $/Bbl MBbl per day $/Bbl MMcfe per day $/Mcfe Haynesville 1,191  1.70  —  —  —  —  1,191  1.70  Northeast Appalachia 1,554  1.35  —  —  —  —  1,554  1.35  Total 2,745  1.51  —  —  —  —  2,745  1.51  Average NYMEX Price 1.89  —  Average Realized Price (including realized derivatives) 2.51  —  —  2.51  Six Months Ended June 30, 2025 Natural Gas Oil NGL Total MMcf per day $/Mcf MBbl per day $/Bbl MBbl per day $/Bbl MMcfe per day $/Mcfe Haynesville 2,798  3.29  —  —  —  —  2,798  3.29  Northeast Appalachia 2,665  3.20  —  —  —  —  2,665  3.20  Southwest Appalachia 963  3.24  16  58.34  79  26.66  1,533  4.01  Total 6,426  3.24  16  58.34  79  26.66  6,996  3.41  Average NYMEX Price 3.55  67.58  Average Realized Price (including realized derivatives) 3.24  59.30  26.04  3.40  8 Six Months Ended June 30, 2024 Natural Gas Oil NGL Total MMcf per day $/Mcf MBbl per day $/Bbl MBbl per day $/Bbl MMcfe per day $/Mcfe Haynesville 1,334  1.88  —  —  —  —  1,334  1.88  Northeast Appalachia 1,637  1.71  —  —  —  —  1,637  1.71  Total 2,971  1.79  —  —  —  —  2,971  1.79  Average NYMEX Price 2.07  —  Average Realized Price (including realized derivatives) 2.69  —  —  2.69  CAPITAL EXPENDITURES ACCRUED (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 ($ in millions) Drilling and completion capital expenditures: Haynesville $ 348  $ 131  $ 634  $ 326  Northeast Appalachia 117  93  220  198  Southwest Appalachia 138  —  303  —  Total drilling and completion capital expenditures 603  224  1,157  524  Non-drilling and completion - field 86  39  142  74  Non-drilling and completion - corporate 38  30  90  49  Total capital expenditures $ 727  $ 293  $ 1,389  $ 647  9 SHAREHOLDER RETURNS (unaudited) The total common stock dividend, including the variable and base components, is calculated as follows: ($ and shares in millions, except per share amounts) Six Months Ended June 30, 2025 Net cash provided by operating activities (GAAP) $ 2,418  Less cash capital expenditures (1,220) Less contributions to investments (9) Less cash paid for common stock base dividends (Tranche 1) (274) Less net debt reduction (Tranche 2) (500) Free cash flow (Non-GAAP) after Tranche 1 and Tranche 2 415  Free cash flow (Non-GAAP) available for additional returns to equity (Tranche 3) (1) 311  Less common stock repurchases (100) Amount available for variable dividend $ 211  Common shares outstanding at 7/24/25 (2) 238  Variable dividend payable per common share in September 2025 $ 0.89  Base dividend payable per common share in September 2025 $ 0.575  Total dividend payable per common share in September 2025 $ 1.465  (1) Represents approximately 75% of the free cash flow after Tranche 1 and Tranche 2. (2) Basic common shares outstanding as of 7/24/2025 assumes no exercise of warrants between 7/24/2025 and dividend record date. 10 NON-GAAP FINANCIAL MEASURES As a supplement to the financial results prepared in accordance with U.S. GAAP, Expand Energy’s quarterly earnings releases contain certain financial measures that are not prepared or presented in accordance with U.S. GAAP. These non-GAAP financial measures include Adjusted Net Income, Adjusted Diluted Earnings Per Common Share, Adjusted EBITDAX, Free Cash Flow, Adjusted Free Cash Flow and Net Debt. A reconciliation of each financial measure to its most directly comparable GAAP financial measure is included in the tables below. Management believes these adjusted financial measures are a meaningful adjunct to earnings and cash flows calculated in accordance with GAAP because (a) management uses these financial measures to evaluate the Company’s trends and performance, (b) these financial measures are comparable to estimates provided by securities analysts, and (c) items excl