EXPAND ENERGY Corp. Files Q3 2024 10-Q

TL;DR

**EXPAND ENERGY Q3 10-Q FILED: Details oil/gas ops & warrants. Compare vs 2023.**

AI Summary

EXPAND ENERGY Corp. filed its 10-Q for the period ending September 30, 2024. The company, formerly Chesapeake Energy Corp., reported on its oil and gas operations and natural gas gathering, transportation, marketing, and processing segments for the third quarter and the first nine months of 2024, comparing them to the same periods in 2023. The filing also details various classes of warrants and common stock outstanding.

Why It Matters

This filing provides investors with crucial financial and operational updates for EXPAND ENERGY Corp., impacting their investment decisions in the oil and gas sector.

Risk Assessment

Risk Level: medium — The company operates in the volatile oil and gas industry, which is subject to significant price fluctuations and regulatory changes.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial information is reported.)
• 2024-10-29 — Filing Date (The date the 10-Q report was officially submitted to the SEC.)
• 2024 Q3 — Fiscal Quarter (Specifies the quarter of the year the report pertains to.)

Key Players & Entities

• EXPAND ENERGY Corp. (company) — Filer of the 10-Q
• Chesapeake Energy Corp. (company) — Former name of EXPAND ENERGY Corp.
• 2024-09-30 (date) — End of the reporting period
• 2024-10-29 (date) — Filing date
• Oklahoma City, OK (location) — Company's business and mailing address

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share EXE The Nasdaq Stoc
• $27.63 — an initial exercise price per share of $27.63. The Class A Warrants are exercisable f
• $32.13 — an initial exercise price per share of $32.13. The Class B Warrants are exercisable f
• $36.18 — an initial exercise price per share of $36.18. The Class C Warrants are exercisable f

Filing Documents

• exe-20240930.htm (10-Q) — 1416KB
• exe-ex_311x20240930x10q.htm (EX-31.1) — 9KB
• exe-ex_312x20240930x10q.htm (EX-31.2) — 10KB
• exe-ex_321x20240930x10q.htm (EX-32.1) — 5KB
• exe-ex_322x20240930x10q.htm (EX-32.2) — 6KB
• exe-20240930_g1.jpg (GRAPHIC) — 177KB
• 0000895126-24-000135.txt ( ) — 7595KB
• exe-20240930.xsd (EX-101.SCH) — 43KB
• exe-20240930_cal.xml (EX-101.CAL) — 77KB
• exe-20240930_def.xml (EX-101.DEF) — 306KB
• exe-20240930_lab.xml (EX-101.LAB) — 609KB
• exe-20240930_pre.xml (EX-101.PRE) — 452KB
• exe-20240930_htm.xml (XML) — 989KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements (Unaudited) Condensed Consolidated Balance Sheets 5 Condensed Consolidated Statements of Operations 6 Condensed Consolidated Statements of Cash Flows 7 Condensed Consolidated Statements of Stockholders' Equity 9 Notes to Condensed Consolidated Financial Statements (Unaudited) Note 1. Basis of Presentation and Summary of Significant Accounting Policies 11 Note 2. Natural Gas and Oil Property Transactions 12 Note 3. Earnings Per Share 13 Note 4. Debt 14 Note 5. Contingencies and Commitments 16 Note 6. Other Current Liabilities 18 Note 7. Revenue 18 Note 8. Income Taxes 19 Note 9. Equity 20 Note 10. Share-Based Compensation 21 Note 11. Derivative and Hedging Activities 23 Note 12. Investments 25 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Liquidity and Capital Resources 28 Results of Operations 32 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 40 Item 4.

Controls and Procedures

Controls and Procedures 41

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 42 Item 1A.

Risk Factors

Risk Factors 42 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 43 Item 3. Defaults Upon Senior Securities 43 Item 4. Mine Safety Disclosures 43 Item 5. Other Information 43 Item 6. Exhibits 44

Signatures

Signatures 45 Explanatory Note and Definitions On October 1, 2024, Chesapeake completed its previously announced merger with Southwestern. After the Southwestern Merger, Chesapeake changed its name to Expand Energy Corporation. Unless otherwise specified, information set forth herein relates to the period as of and for the quarter and year-to-date periods ended September 30, 2024 and therefore does not include the information of Southwestern and its subsidiaries for those periods, the corresponding prior year periods or financial position as of September 30, 2024 or December 31, 2023. References to "us," "we," "our," "ours," "Expand Energy" and the "Company" prior to October 1, 2024 refer to Chesapeake Energy Corporation and its consolidated subsidiaries prior to the Southwestern Merger and do not include Southwestern and its subsidiaries, while such references on or after October 1, 2024 refer to the combined company as a result of the Southwestern Merger, including Southwestern and its subsidiaries. All monetary values, other than per unit and per share amounts, are stated in millions of U.S. dollars unless otherwise specified. In addition, the following are other abbreviations and definitions of certain terms used within this Quarterly Report on Form 10-Q: "ASU" means Accounting Standards Update. "Bankruptcy Code" means Title 11 of the United States Code, 11 U.S.C. 101–1532, as amended. "Bankruptcy Court" means the United States Bankruptcy Court for the Southern District of Texas. "Bbl" or "Bbls" means barrel or barrels. "Bcf" means billion cubic feet. "Chapter 11 Cases" means, when used with reference to a particular Debtor, the case pending for that Debtor under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court, and when used with reference to all the Debtors, the procedurally consolidated Chapter 11 cases pending for the Debtors in the Bankruptcy Court. "Chesapeake" means Chesapeake Energy Corporation, prior to the Southwestern Merger. "C

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Condensed Consolidated Financial Statements

ITEM 1. Condensed Consolidated Financial Statements EXPAND ENERGY CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) ($ in millions, except per share data) September 30, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 1,044 $ 1,079 Restricted cash 76 74 Accounts receivable, net 261 593 Derivative assets 199 637 Other current assets 217 226 Total current assets 1,797 2,609 Property and equipment: Natural gas and oil properties, successful efforts method Proved natural gas and oil properties 12,373 11,468 Unproved properties 1,806 1,806 Other property and equipment 518 497 Total property and equipment 14,697 13,771 Less: accumulated depreciation, depletion and amortization ( 4,743 ) ( 3,674 ) Total property and equipment, net 9,954 10,097 Long-term derivative assets 15 74 Deferred income tax assets 1,038 933 Other long-term assets 588 663 Total assets $ 13,392 $ 14,376 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 264 $ 425 Accrued interest 41 39 Derivative liabilities 5 3 Other current liabilities 589 847 Total current liabilities 899 1,314 Long-term debt, net 2,017 2,028 Long-term derivative liabilities — 9 Asset retirement obligations, net of current portion 271 265 Other long-term liabilities 17 31 Total liabilities 3,204 3,647 Contingencies and commitments ( Note 5 ) Stockholders' equity: Common stock, $ 0.01 par value, 450,000,000 shares authorized: 135,107,576 and 130,789,936 shares issued 1 1 Additional paid-in capital 5,778 5,754 Retained earnings 4,409 4,974 Total stockholders' equity 10,188 10,729 Total liabilities and stockholders' equity $ 13,392 $ 14,376 The accompanying notes are an integral part of these condensed consolidated financial statements. 5 Table of Contents EXPAND ENERGY CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended September 30, Nine Mont

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