Expand Energy Q3 Adjusted Net Income Rises 44% on Higher Gas Output, Marketing Gains

Expand Energy Corp. reported a 44% increase in third-quarter adjusted net income, boosted by higher natural gas production and stronger marketing performance, even as GAAP net income declined year over year. The largest U.S. independent natural gas producer posted adjusted net income of $338 million, or $1.46 per diluted share, compared with $234 million, or $0.97 per share, a year earlier. GAAP net income fell to $519 million from $547 million. Total revenues rose about 11% to $3.29 billion, and adjusted EBITDAX climbed nearly 14% to $1.23 billion. Natural gas production increased to roughly 6.92 Bcf/d from 6.72 Bcf/d, with gas accounting for 92% of total output of 7.54 Bcfe/d. Operating cash flow was $1.18 billion, while free cash flow fell to $339 million from $426 million as capital spending rose to $838 million. The company repurchased $305 million of stock in the quarter, bringing year-to-date buybacks to about $900 million. Expand Energy closed its acquisition of Twin Eagle Holdings on September 16 and guided to full-year production of 7.45–7.55 Bcfe/d with about $3 billion in capital investment.