Third Quarter 2026
Filed Oct 27, 2026Expand Energy Corporation Reports Third Quarter 2026 Results
Third-quarter production, marketing revenue, adjusted EBITDAX and marketing adjusted EBITDA increased from the prior-year quarter, while total revenue increased. GAAP net income, GAAP diluted EPS, operating cash flow and free cash flow were lower than the prior-year quarter. The company completed the Twin Eagle acquisition, repurchased $305 million of stock, and updated full-year capital investment guidance to approximately $3 billion.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues and other, three months ended September 30GAAP | $3.29B | – | – |
| Natural gas, oil and NGL revenues, three months ended September 30GAAP | $1.88B | – | – |
| Marketing revenues, three months ended September 30GAAP | $927M | – | – |
| Gains on derivatives, three months ended September 30GAAP | $464M | – | – |
| Gains (losses) on sales of assets, three months ended September 30GAAP | $14M | – | – |
| Total operating expenses, three months ended September 30GAAP | $2.65B | – | – |
| Production expense, three months ended September 30GAAP | $168M | – | – |
| Gathering, processing and transportation expense, three months ended September 30GAAP | $678M | – | – |
| Severance and ad valorem taxes, three months ended September 30GAAP | $61M | – | – |
| Exploration expense, three months ended September 30GAAP | $19M | – | – |
| Marketing expense, three months ended September 30GAAP | $888M | – | – |
| General and administrative expense, three months ended September 30GAAP | $50M | – | – |
| Separation and other termination costs, three months ended September 30GAAP | $3M | – | – |
| Depreciation, depletion and amortization, three months ended September 30GAAP | $750M | – | – |
| Other operating expense (income), net, three months ended September 30GAAP | $29M | – | – |
| Income from operations, three months ended September 30GAAP | $640M | – | – |
| Interest expense, three months ended September 30GAAP | −$44M | – | – |
| Income before income taxes, three months ended September 30GAAP | $608M | – | – |
| Income tax expense, three months ended September 30GAAP | $89M | – | – |
| Net income, three months ended September 30GAAP | $519M | – | – |
| Diluted earnings per common share, three months ended September 30GAAP | $ 2.24 | – | – |
| Adjusted net income, three months ended September 30non-GAAP | $338M | – | – |
| Adjusted diluted earnings per common share, three months ended September 30non-GAAP | $ 1.46 | – | – |
| Adjusted EBITDAX, three months ended September 30non-GAAP | $1.23B | – | – |
| Marketing segment income from operations, three months ended September 30GAAP | $94M | – | – |
| Marketing Adjusted EBITDA, three months ended September 30non-GAAP | $35M | – | – |
| Net cash provided by operating activities, three months ended September 30GAAP | $1.18B | – | – |
| Capital expenditures, three months ended September 30GAAP | −$838M | – | – |
| Free cash flow, three months ended September 30non-GAAP | 339 | – | – |
| Adjusted free cash flow, three months ended September 30non-GAAP | $354M | – | – |
| Net production, three months ended September 30other | 7,538 MMcfe per day | – | – |
| Natural gas production, three months ended September 30other | 6,916 MMcf per day | – | – |
| Oil production, three months ended September 30other | 17 MBbl per day | – | – |
| NGL production, three months ended September 30other | 87 MBbl per day | – | – |
| Average realized price including realized derivatives, total, three months ended September 30other | $3.17 per Mcfe | – | – |
| Total revenues and other, nine months ended September 30GAAP | $10.64B | – | – |
| Income from operations, nine months ended September 30GAAP | $2.83B | – | – |
| Net income, nine months ended September 30GAAP | $2.2B | – | – |
| Diluted earnings per common share, nine months ended September 30GAAP | $ 9.29 | – | – |
| Adjusted net income, nine months ended September 30non-GAAP | $1.58B | – | – |
| Adjusted diluted earnings per common share, nine months ended September 30non-GAAP | $ 6.66 | – | – |
| Adjusted EBITDAX, nine months ended September 30non-GAAP | $4.38B | – | – |
| Net cash provided by operating activities, nine months ended September 30GAAP | $4.67B | – | – |
| Free cash flow, nine months ended September 30non-GAAP | 2,377 | – | – |
| Adjusted free cash flow, nine months ended September 30non-GAAP | $2.40B | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $118M | – | – |
| Total debt, September 30, 2026GAAP | $4.63B | – | – |
| Net debt, September 30, 2026non-GAAP | $4.66B | – | – |
| Net debt to Adjusted EBITDAX, September 30, 2026non-GAAP | 0.8 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Natural gas, oil and NGLThird-quarter total production was 7,538 MMcfe per day, including 6,916 MMcf per day of natural gas, 17 MBbl per day of oil and 87 MBbl per day of NGL. | $1.88B | – | – |
| MarketingMarketing Adjusted EBITDA was $ 35 million and marketing segment income from operations was $ 94 million for the three months ended September 30, 2026. | $927M | – | – |
Full year 2026 and fourth quarter 2026 outlook
- Note11 – 12 rigs for the full year 2026
- Noteapproximately $3 billion capital investment guidance for the full year 2026
- Noteapproximately 7.45 – 7.55 Bcfe/d average daily production for the full year 2026
- Note$80 million of marketing EBITDA during the fourth quarter
Capital returns
- Repurchased $305 million of common stock in the third quarter.
- Year-to-date repurchases total approximately $900 million or 4% of shares outstanding.
- $1 billion of capacity for additional repurchases under the previously announced expanded authorization.
- Plans to pay a quarterly base dividend of $0.575 per share on December 3, 2026 to shareholders of record at the close of business on November 12, 2026.
- Cash paid to repurchase and retire common stock was $ (320) million for the three months ended September 30, 2026 and $ (900) million for the nine months ended September 30, 2026.
- Cash paid for common stock dividends was $ (132) million for the three months ended September 30, 2026 and $ (411) million for the nine months ended September 30, 2026.
What drove it
- The company operated an average of 11 rigs, drilled 46 wells and turned 59 wells in line during the third quarter.
- Net production was approximately 7.54 Bcfe/d, with 92% natural gas.
- The release cites operational performance and liquids revenue as drivers of net cash provided by operating activities.
- Marketing revenue was $ 927 million and Marketing Adjusted EBITDA was $ 35 million in the quarter.
- The fourth-quarter marketing EBITDA outlook of $80 million reflects the impact of the Twin Eagle Acquisition.
Concerns
- GAAP net income was $ 519 million versus $ 547 million in the prior-year quarter.
- GAAP diluted earnings per common share was $ 2.24 versus $ 2.28 in the prior-year quarter.
- Income from operations was $ 640 million versus $ 725 million in the prior-year quarter.
- Net cash provided by operating activities was $ 1,177 million versus $ 1,201 million in the prior-year quarter.
- Free cash flow was 339 versus 426 in the prior-year quarter.
- Capital expenditures were $ (838) million versus $ (775) million in the prior-year quarter.
- Cash and cash equivalents declined to $ 118 million as of September 30, 2026 from $ 616 million as of December 31, 2025.
What to watch
- Delivery against full-year average daily production guidance of approximately 7.45 – 7.55 Bcfe/d.
- Fourth-quarter marketing EBITDA outlook of $80 million and the impact of the Twin Eagle Acquisition.
- Capital investment against approximately $3 billion of full-year 2026 guidance.
- Use of the remaining $1 billion of share-repurchase capacity.
- Net debt and net debt to Adjusted EBITDAX following the Twin Eagle Acquisition.
Balance sheet and cash flow
- Cash and cash equivalents were $ 118 million as of September 30, 2026.
- Restricted cash was $ 103 million as of September 30, 2026.
- Total debt was $ 4,632 million as of September 30, 2026.
- Net debt was $ 4,656 million as of September 30, 2026.
- Net debt to Adjusted EBITDAX was 0.8 as of September 30, 2026.
- Net cash used in investing activities was $ (2,158) million for the three months ended September 30, 2026, including $ (1,395) million for business combination, net.
- The Twin Eagle acquisition closed on September 16, 2026.
- Net cash provided by financing activities was $ 438 million for the three months ended September 30, 2026.
Analysis
Expand Energy reported $ 3,286 million of total revenues and other for the third quarter, compared with $ 2,966 million in the prior-year quarter. Natural gas, oil and NGL revenues were $ 1,881 million and marketing revenues were $ 927 million. Production reached 7,538 MMcfe per day, compared with 7,333 MMcfe per day in the prior-year quarter, while the average realized price including realized derivatives was $3.17 per Mcfe versus $2.95 per Mcfe.
GAAP profitability was lower than the prior-year quarter despite the higher revenue base. Income from operations was $ 640 million versus $ 725 million, net income was $ 519 million versus $ 547 million, and diluted earnings per common share was $ 2.24 versus $ 2.28. Non-GAAP results increased: adjusted net income was $ 338 million versus $ 234 million, adjusted diluted earnings per common share was $ 1.46 versus $ 0.97, and adjusted EBITDAX was $ 1,229 million versus $ 1,082 million.
Marketing was a meaningful contributor to the quarter. Marketing segment income from operations was $ 94 million, compared with $ 62 million in the prior-year quarter, and Marketing Adjusted EBITDA was $ 35 million, compared with $ 7 million. The company completed the Twin Eagle acquisition on September 16, 2026, and expects $80 million of marketing EBITDA in the fourth quarter, reflecting the acquisition's impact.
Cash generation remained substantial, although quarterly operating cash flow and free cash flow were below the prior-year period. Net cash provided by operating activities was $ 1,177 million, free cash flow was 339, and adjusted free cash flow was $ 354 million. The company spent $ (838) million on capital expenditures and $ (1,395) million on its business combination, net, during the quarter. It repurchased $305 million of common stock and plans to pay a quarterly base dividend of $0.575 per share on December 3, 2026.
The company updated full-year 2026 capital investment guidance to approximately $3 billion and expects average daily production of approximately 7.45 – 7.55 Bcfe/d while operating 11 – 12 rigs. Total debt was $ 4,632 million at quarter-end, net debt was $ 4,656 million, and net debt to Adjusted EBITDAX was 0.8. The principal reported execution items are production within the stated full-year range, capital investment at approximately $3 billion, fourth-quarter marketing EBITDA of $80 million, and integration of Twin Eagle.
Management, verbatim
With our diversified scale, investment-grade balance sheet and coast-to-coast customer access, Expand Energy is uniquely positioned to monetize the volatility we see in the gas market today, provide advantaged supply to premium markets and capitalize on the demand growth we expect in the future.
Danny Brown, President and Chief Executive Officer
Capturing value requires a talented team, disciplined capital allocation and operational excellence. I look forward to working with this team to continue the momentum built and firmly establish Expand Energy as North America’s leading integrated gas company.
Danny Brown, President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter comparative values and explicitly stated sequential changes for most quarterly metrics.
- Gross margin, gross profit and gross-margin guidance.
- Formal full-year revenue guidance.
- Formal operating-expense guidance.
- Formal tax-rate guidance.
- Previous-release outlook, so no comparison of actual results with prior guidance is available.
- Explicit percentage changes for reported financial-statement line items.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.