Expand Energy — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income was $519 million ($2.24 per fully diluted share) for the quarter, compared to $547 million ($2.30 per basic share) in the same period in 2025.
• Adjusted net income was $338 million ($1.46 per diluted share), compared to $234 million ($0.97 per diluted share) in the prior year period.
• Adjusted EBITDAX was $1,229 million for the quarter, up from $1,082 million in the prior year period; trailing twelve-month Adjusted EBITDAX was $5,805 million.
• Net cash provided by operating activities was $1,177 million for the quarter, compared to $1,201 million in the prior year period.
• Free cash flow was $339 million for the quarter, down from $426 million in the prior year period.
• Adjusted free cash flow was $354 million for the quarter, compared to $423 million in the prior year period.
• Total debt was $4.6 billion as of quarter-end, with a leverage ratio of 0.8x.
• Net debt was $4,656 million as of September 30, 2026, compared to $4,409 million as of December 31, 2025.
• For the nine months ended September 30, 2026, net income was $2,200 million and Adjusted EBITDAX was $4,380 million.

Guidance and Future Outlook:

• Full-year 2026 capital investment guidance was updated to approximately $3 billion.
• Expand Energy expects to run 11–12 rigs for the full year 2026.
• Average daily production for 2026 is expected to be approximately 7.45–7.55 Bcfe/d.
• Marketing adjusted EBITDA for the nine months ended September 30, 2026, was $150 million.
• The Company expects $80 million of marketing EBITDA in the fourth quarter 2026, reflecting the impact of the Twin Eagle acquisition.

Business Segments and Product Lines:

• Net production averaged 7.54 Bcfe/d during the third quarter, consisting of 92% natural gas.
• Production breakdown included 6.9 Bcf/d of natural gas, 17 MBbls/d of oil, and 87 MBbls/d of natural gas liquids.
• The Company completed the acquisition of Twin Eagle Holdings, N.A., LLC on September 16, 2026.
• Operations included an average of 11 rigs, drilling 46 wells and turning 59 wells in line.
• Marketing segment income from operations was $94 million for the quarter, with Marketing Adjusted EBITDA of $35 million.

Market and Competitive Landscape:

• The Company describes itself as North America's leading integrated natural gas company and the largest natural gas producer in the U.S.
• Management highlighted the ability to monetize gas market volatility and provide advantaged supply to premium markets.
• Average realized prices for the quarter included $2.94/Mcf for natural gas, $75.97/Bbl for oil, and $25.87/Bbl for NGLs.

Risks and Challenges:

• Risks include reduced demand for natural gas, oil, and NGLs, as well as volatility in commodity prices.
• Potential impacts from armed conflict (Russia-Ukraine, Middle East, Venezuela) and changes in China-Taiwan relations.
• Risks related to pipeline and gathering system capacity constraints, transportation interruptions, and supply chain constraints.
• Regulatory risks include environmental and sustainability legislation, climate change regulations, and federal/state tax proposals.
• Financial risks include limitations on financial flexibility due to indebtedness and restrictive covenants.
• Operational risks include drilling and operating risks, reserve estimation uncertainties, and the need to replace reserves.

Management Commentary and Tone:

• President and CEO Danny Brown stated the Company is "uniquely positioned to monetize the volatility we see in the gas market today" due to its diversified scale and investment-grade balance sheet.
• Management emphasized a focus on "talented team, disciplined capital allocation and operational excellence" to establish Expand Energy as North America's leading integrated gas company.
• The tone regarding capital allocation is focused on returns, including opportunistic share repurchases while preserving balance sheet capacity.

Other Key Points:

• The Company repurchased $305 million of common stock in the third quarter; year-to-date repurchases totaled approximately $900 million (4% of shares outstanding).
• The Company has $1 billion of capacity remaining for additional repurchases under its expanded authorization.
• A quarterly base dividend of $0.575 per share is planned for payment on December 3, 2026, to shareholders of record on November 12, 2026.
• The Company reported $1,395 million in cash used for business combinations (Twin Eagle acquisition) in the nine-month period.
• Capital expenditures for the quarter were $838 million, with $2,298 million for the nine-month period.
• The Company operates in Haynesville, Northeast Appalachia, and Southwest Appalachia regions.