Expand Energy (EXE) investor relations material

Executive summary

• Q3 production averaged 7,538 MMcfe/d, with 92% natural gas; adjusted EBITDAX was $1.229B and adjusted free cash flow was $354M.

• Twin Eagle closed September 16 for $1.405B, adding commercial capabilities and customer relationships across the U.S. and Canada.

• Danny Brown became President and CEO effective October 26, with execution, capital allocation and integration among the stated priorities.

Financial highlights

• Q3 revenue and other income totaled $3.286B; net income was $519M, or $2.24 per diluted share, and adjusted net income was $338M, or $1.46 per diluted share.

• Q3 operating income was $640M versus $725M a year earlier; adjusted EBITDAX was $1.229B versus $1.082B.

• Net cash from operations was $1.177B versus $1.201B; adjusted free cash flow was $354M versus $423M year over year.

• Q3 hedge gains were $311M; hedging improved realized prices by $0.46/Mcfe and generated more than $300M relative to the price strip.

• Nine-month net income was $2.200B versus $1.266B, and operating cash flow was $4.675B versus $3.619B.

Outlook and guidance

• FY26 production guidance is 7.45–7.55 Bcfe/d; Q4 guidance is 7.4–7.6 Bcf/d, with 11–12 rigs planned for FY26.

• FY26 capital expenditures are guided at $3.0B, including $2.4B for drilling and completion; the plan includes 205–235 gross wells turned in line.

• Q4 Marketing EBITDA guidance is $80M, or $0.12/Mcfe; FY26 Marketing EBITDA guidance is $230M.

• Marketing and commercial synergies are targeted at $150M by year-end 2028; run-rate EBITDA targets are $500M by 2028 and $750M after 2028.

• 2027 is viewed as a transition year; production flexibility will be maintained amid expected demand growth, while early cost outlook implies low- to mid-single-digit inflation versus 2026.