
Hence the $300 million capex addendum penciled in for the second half of this year: That will grow Expand’s rig count from about 12 in first-half 2025 to up to 15 late in the year and give executives the option to boost 2026 production up to 7.5 bcfed from the baseline forecast of 7.2 bcfed.
“The market’s been volatile,” Dell’Osso said on the conference call. “We are better prepared for that volatility, we think, than just about anybody else out there.”
Formed last year via the $7.4 billion union of Chesapeake Energy and Southwestern Energy (OGJ Online, Feb. 13, 2024), Expand in the fourth quarter posted a net loss of $399 million on total revenues of $2.0 billion; in late 2023, those numbers had been a profit of $569 million and $1.95 billion, respectively.
Adjusted for merger costs, taxes, and big swings in derivates gains/losses, net income was $131 million in the quarter, down from $185 million in the same quarter of 2023.
Shares of Expand (Ticker: EXE) fell on the earnings report and management’s commentary: In midday trading, they were down 3% to about $99.20. Over the past 6 months, however, they have risen more than 35%, a surge that has grown Expand’s market capitalization to $23 billion.