Earnings

Expand Energy Net Income Slips To $519 Million, But Adjusted Profit Jumps To $338 Million

The gas producer bought back $305 million of stock in the third quarter and closed its Twin Eagle purchase on September 16.

Expand Energy, which produces natural gas from onshore fields in the Haynesville, Marcellus and Utica shales, reported third-quarter net income of $519 million, down from $547 million a year earlier. Adjusted net income, which strips out items such as unrealized derivative gains, rose to $338 million from $234 million, the company said Tuesday.

Two profit measures, two directions

Net income worked out to $2.24 per diluted share, against $2.28 a year earlier. Adjusted earnings were $1.46 per diluted share, up from $0.97, according to the company's release.

Adjusted EBITDAX, a measure of operating earnings before interest, taxes, depreciation and exploration costs, reached $1,229 million versus $1,082 million. Operating cash flow was $1,177 million, compared with $1,201 million a year earlier.

For the first nine months, free cash flow (operating cash flow less capital spending) was $2,377 million, versus $1,624 million a year earlier.

Output holds near 7.5 Bcfe/d

Net production averaged 7.54 Bcfe/d, 92% of it natural gas, over an average of 11 rigs. For all of 2026, Expand expects to run 11 to 12 rigs, spend about $3 billion on capital investment and average 7.45 to 7.55 Bcfe/d.

The company closed its purchase of Twin Eagle Holdings on September 16, adding a marketing business. Marketing adjusted EBITDA was $150 million for the nine months ended September 30, and Expand expects $80 million of marketing EBITDA in the fourth quarter, reflecting the acquisition.

Buybacks and a 0.8x leverage ratio

Expand repurchased $305 million of stock in the quarter. Year-to-date repurchases total about $900 million, or 4% of shares outstanding, and $1 billion of buyback capacity remains.

Total debt was $4.6 billion at quarter-end, a leverage ratio of 0.8x. CEO Danny Brown said Expand is "uniquely positioned to monetize the volatility we see in the gas market today."

The $0.575 quarterly dividend is payable December 3 to holders of record November 12.

Expand hosts its earnings call at 9 a.m. EDT on Wednesday.