Original source text
SPRING, Texas, July 28, 2026 (GLOBE NEWSWIRE) -- Expand Energy Corporation (NASDAQ: EXE) ("Expand Energy" or the "Company") today reported second quarter 2026 financial and operating results.
Net cash provided by operating activities of $1,096 million, driven by continued operational executionNet income of $522 million, or $2.19 per fully diluted share; adjusted net income(1) of $317 million, or $1.33 per diluted shareAdjusted EBITDAX(1) of $1,183 millionNet production of ~7.48 Bcfe/d (92% natural gas), reaffirmed full-year 2026 guidance of 7.4 – 7.6 Bcfe/dTotal debt of $3.7 billion as of quarter-end, down ~$1.3 billion from year-end as a result of senior note redemption in April 2026Reported quarter-end net debt(1) of $3.1 billion and peer-leading leverage ratio of ~0.5xApproximately $530 million of common stock repurchases in the second quarter; year-to-date repurchases total approximately $850 million or 4% of shares outstandingAnnounced additional ~$1 billion buyback authorization, facilitating continued opportunistic share repurchasesReleased 2025 Sustainability Report with consistent, transparent performance data disclosureAnnounced the acquisition of Twin Eagle Holdings, N.A. LLC ("Twin Eagle"), creating North America's leading integrated natural gas company (1) Definitions of non-GAAP financial measures and reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure are included at the end of this release.
“This year, the team has been focused on two key initiatives, executing with discipline and accelerating our marketing and commercial strategy. I'm pleased with the significant progress we've made on both fronts,” said Mike Wichterich, Interim President and Chief Executive Officer of Expand Energy. “We’ve strengthened our balance sheet and achieved a peer-leading leverage ratio, giving us the flexibility to opportunistically allocate capital. We acted decisively with our buyback program, reduced outstanding shares by 4%, and authorized an additional $1 billion of share repurchases. Through our leasing program, we’ve organically extended our inventory across our portfolio at a significant discount to recent industry acquisitions. Most importantly, our recently announced acquisition of Twin Eagle immediately establishes Expand as the leading integrated natural gas company, extends our access to demand markets from coast to coast, and meaningfully accelerates our strategy. The team is executing on all fronts, delivering as promised, and creating sustainable value for our shareholders.”
Operations Update
Expand Energy operated an average of 12 rigs during the second quarter, drilling 55 wells and turning 48 wells in line, resulting in net production of approximately 7.48 Bcfe/d (92% natural gas). A detailed breakdown of second quarter production, capital expenditures and activity can be found in the supplemental slides which have been posted at https://investors.expandenergy.com/events-presentations.
2026 Capital and Operating Outlook
In 2026, Expand Energy expects to run 11 – 12 rigs and invest approximately $2.75 – $2.95 billion. Average daily production is expected to be approximately 7.4 – 7.6 Bcfe/d.
A detailed breakdown of the Company's 2026 annual capital and operating outlook can be found in the supplemental slides.
Shareholder Returns Update
Expand Energy expects to continue its returns-focused allocation of capital, including to share repurchases, while preserving balance sheet capacity to capitalize on attractive opportunities through the cycle. Year-to-date through July 24, 2026, the Company has redeemed approximately $1.3 billion of gross debt and executed $849 million of share repurchases. The Company plans to pay its quarterly base dividend of $0.575 per share on September 3, 2026 to shareholders of record at the close of business on August 13, 2026.
Conference Call Information
A conference call to discuss Expand Energy's second quarter 2026 financial and operating results and 2026 outlook has been scheduled for 9 a.m. EDT on July 29, 2026. Participants can access the live webcast at https://edge.media-server.com/mmc/p/w7azq3eg/. Participants who would like to ask a question, can register at https://register-conf.media-server.com/register/BIa5617126d27645d887bff8d8eefaf1c6, and will receive the dial-in info and a unique PIN to join the call. Links to the conference call will be provided at https://investors.expandenergy.com/. A replay will be available on the website following the call.
Financial Statements, Non-GAAP Financial Measures and 2026 Guidance and Outlook Projections
This news release contains the non-GAAP financial measures described below in the section titled "Non-GAAP Financial Measures." Reconciliations of each non-GAAP financial measure used in this news release to the most directly comparable GAAP financial measure are provided below. Additional detail on the Company’s 2026 second quarter financial and operational results, along with non-GAAP measures that adjust for items typically excluded by securities analysts, are available on the Company’s website. Non-GAAP measures should not be considered as an alternative to, or more meaningful than, GAAP measures. Management’s guidance for 2026 can be found on the Company’s website at www.expandenergy.com.
Expand Energy Corporation (NASDAQ: EXE) is North America’s largest natural gas producer, powered by dedicated and innovative employees focused on expanding the value of natural gas by connecting global scale to growing markets. Expand Energy’s returns-driven strategy strives to create sustainable value for its stakeholders by leveraging its advantaged portfolio, financial strength and operational excellence. Expand Energy is committed to expanding America’s energy reach to fuel a more affordable, reliable, lower carbon future.
Forward-Looking Statements
This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include our current expectations or forecasts of future events, including matters relating to armed conflict between Russia and Ukraine, instability in the Middle East and Venezuela and changes in China-Taiwan relations, along with the effects of the current global economic environment, and the impact of each on our business, financial condition, results of operations and cash flows, actions by, or disputes among or between, members of OPEC+ and other foreign oil-exporting countries, market factors, market prices, our ability to meet debt service requirements, our ability to continue to pay cash dividends, the amount and timing of any cash dividends and our sustainability initiatives. Forward-looking and other statements in this news release regarding our environmental, social and other sustainability plans and goals are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the Securities and Exchange Commission ("SEC"). In addition, historical, current, and forward-looking environmental, social and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Forward-looking statements often address our expected future business, financial performance and financial condition, and often contain words such as "aim", "predict", "should", "expect," “could,” “may,” "anticipate," "intend," "plan," “ability,” "believe," "seek," "see," "will," "would," “estimate,” “forecast,” "target," “guidance,” “outlook,” “opportunity” or “strategy.” The absence of such words or expressions does not necessarily mean the statements are not forward-looking.
Although we believe the expectations and forecasts reflected in our forward-looking statements are reasonable, they are inherently subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. No assurance can be given that such forward-looking statements will be correct or achieved or that the assumptions are accurate or will not change over time. Particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include:
Reduced demand for natural gas, oil, and natural gas liquids ("NGLs");negative public perceptions of our industry;competition in the natural gas and oil exploration and production industry;the volatility of natural gas, oil and NGL prices, which are affected by general economic and business conditions, as well as increased demand for (and availability of) alternative fuels and electric vehicles;risks from regional epidemics or pandemics and related economic turmoil, including supply chain constraints;write-downs of our natural gas and oil asset carrying values due to low commodity prices;significant capital expenditures are required to replace our reserves and conduct our business;our ability to replace reserves and sustain production;uncertainties inherent in estimating quantities of natural gas, oil and NGL reserves and projecting future rates of production and the amount and timing of development expenditures;drilling and operating risks and resulting liabilities;our ability to generate profits or achieve targeted results in drilling and well operations;leasehold terms expiring before production can be established;risks from our commodity price risk management activities;uncertainties, risks and costs associated with natural gas and oil operations;our need to secure adequate supplies of water for our drilling operations and to dispose of or recycle the water used;pipeline and gathering system capacity constraints and transportation interruptions;risks related to our plans to participate in the global LNG value chain;terrorist activities and/or cyber-attacks adversely impacting our operations;risks from failure to protect personal information and data and compliance with data privacy and security laws and regulations;disruption of our business by natural or human causes beyond our control;a deterioration in general economic, business or industry conditions;the impact of inflation and commodity price volatility, including as a result of decisions made by OPEC+ and armed conflict between Russia and Ukraine, instability in the Middle East and Venezuela, and changes in China-Taiwan relations, along with the effects of the current global economic environment, on our business, financial condition, employees, contractors, vendors and the global demand for natural gas and oil and on U.S. and global financial markets;our inability to access the capital markets on favorable terms;the limitations on our financial flexibility due to our level of indebtedness and restrictive covenants from our indebtedness;challenges with employee recruitment and retention and an increasingly competitive labor market;risks related to acquisitions or dispositions, or potential acquisitions or dispositions;security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, or from breaches of information technology systems of third parties with whom we transact business;our ability to achieve and maintain sustainability certifications, goals and commitments;environmental and sustainability legislation and regulatory initiatives, including those addressing the impact of climate change or further regulating hydraulic fracturing, greenhouse gas emissions, flaring or water disposal;federal and state tax proposals affecting our industry;risks related to an annual limitation on the utilization of our tax attributes, which was triggered upon the completion of our merger with Southwestern Energy Company, as well as trading in our common stock, additional issuance of common stock, and certain other stock transactions, which could lead to an additional, potentially more restrictive, annual limitation;the actual consummation of the acquisition of Twin Eagle (the "Twin Eagle Acquisition") and the expected timetable for completion thereof, the results, effects and benefits of the Twin Eagle Acquisition, future opportunities for the Company, other plans with respect to the Twin Eagle Acquisition, and the anticipated impact of the Twin Eagle Acquisition on the Company’s results of operations, financial position, growth opportunities and competitive position;the integration of acquisitions, including the Twin Eagle Acquisition; andother factors that are described under Risk Factors in Item 1A of Part I of our Annual Report on Form 10-K filed with the SEC. We caution you not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of the filing date, and we undertake no obligation and have no intention to update any forward-looking statement, except as required by law. We urge you to carefully review and consider the disclosures in this news release and our filings with the SEC that attempt to advise interested parties of the risks and factors that may affect our business.
All forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement.
INVESTOR CONTACT:
Brittany Raiford
(405) 935-8870
[email protected] CONTACT:
Brooke Coe
(405) 935-8878
[email protected] CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) ($ in millions, except per share data)June 30,
2026 December 31,
2025Assets Current assets: Cash and cash equivalents$663 $616 Restricted cash 101 80 Accounts receivable, net 1,098 1,599 Derivative assets 602 264 Other current assets 378 357 Total current assets 2,842 2,916 Property and equipment: Natural gas and oil properties, successful efforts method Proved natural gas and oil properties 28,092 26,606 Unproved properties 5,501 5,478 Other property and equipment 547 509 Total property and equipment 34,140 32,593 Less: accumulated depreciation, depletion and amortization (9,690) (8,278)Property and equipment held for sale, net — 40 Total property and equipment, net 24,450 24,355 Long-term derivative assets 113 47 Deferred income tax assets — 168 Other long-term assets 625 801 Total assets$28,030 $28,287 Liabilities and stockholders' equity Current liabilities: Accounts payable$942 $753 Accrued interest 78 100 Derivative liabilities 1 3 Other current liabilities 1,944 2,045 Total current liabilities 2,965 2,901 Long-term debt, net 3,685 5,009 Long-term derivative liabilities — 1 Asset retirement obligations, net of current portion 723 688 Long-term contract liabilities 835 975 Other long-term liabilities 412 135 Total liabilities 8,620 9,709 Contingencies and commitments Stockholders' equity: Common stock, $0.01 par value, 450,000,000 shares authorized: 234,349,727 and 239,249,874 shares issued 2 2 Additional paid-in capital 13,774 13,746 Retained earnings 5,634 4,830 Total stockholders' equity 19,410 18,578 Total liabilities and stockholders' equity$28,030 $28,287 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three Months
Ended June 30, Six Months
Ended June 30,($ in millions, except per share data) 2026 2025 2026 2025 Revenues and other: Natural gas, oil and NGL$1,830 $2,021 $5,145 $4,321 Marketing 681 788 1,893 1,698 Gains (losses) on derivatives 449 877 320 (137)Gains (losses) on sales of assets — 4 (1) 4 Total revenues and other 2,960 3,690 7,357 5,886 Operating expenses: Production 168 151 353 298 Gathering, processing and transportation 634 563 1,324 1,126 Severance and ad valorem taxes 60 49 120 97 Exploration 16 20 30 27 Marketing 649 791 1,770 1,710 General and administrative 50 40 113 87 Separation and other termination costs — — 9 — Depreciation, depletion and amortization 722 769 1,433 1,480 Other operating expense, net — 38 13 60 Total operating expenses 2,299 2,421 5,165 4,885 Income from operations 661 1,269 2,192 1,001 Other income (expense): Interest expense (43) (60) (102) (119)Gains on purchases, exchanges or extinguishments of debt 37 3 37 3 Other income, net 17 16 34 24 Total other income (expense) 11 (41) (31) (92)Income before income taxes 672 1,228 2,161 909 Income tax expense 150 260 480 190 Net income$522 $968 $1,681 $719 Earnings per common share: Basic$2.19 $4.07 $7.03 $3.04 Diluted$2.19 $4.02 $7.02 $2.99 Weighted average common shares outstanding (in thousands): Basic 238,224 237,973 239,058 236,213 Diluted 238,357 240,560 239,559 240,628 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) Three Months
Ended June 30, Six Months
Ended June 30,($ in millions) 2026 2025 2026 2025 Cash flows from operating activities: Net income$522 $968 $1,681 $719 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 722 769 1,433 1,480 Deferred income tax expense 146 171 465 134 Derivative (gains) losses, net (449) (877) (320) 137 Cash receipts (payments) on derivative settlements, net 294 16 (92) (29)Share-based compensation 12 13 22 22 (Gains) losses on sales of assets — (4) 1 (4)Contract amortization (68) (72) (98) (124)Gains on purchases, exchanges or extinguishments of debt (37) (3) (37) (3)Other (1) 20 34 16 Changes in assets and liabilities (45) 321 409 70 Net cash provided by operating activities 1,096 1,322 3,498 2,418 Cash flows from investing activities: Capital expenditures (753) (657) (1,460) (1,220)Property acquisitions (3) — (7) — Receipts of deferred consideration 56 56 116 116 Contributions to investments — (5) (1) (9)Distributions from investments — — 10 — Proceeds from divestitures of property and equipment 2 15 43 15 Net cash used in investing activities (698) (591) (1,299) (1,098)Cash flows from financing activities: Proceeds from credit facility — 100 — 825 Payments on credit facility — (100) — (825)Proceeds from warrant exercise — 1 15 22 Cash paid to repurchase and retire common stock (514) (99) (580) (99)Cash paid to purchase debt (1,287) (117) (1,287) (553)Cash paid for common stock dividends (138) (137) (279) (279)Net cash used in financing activities (1,939) (352) (2,131) (909)Net increase (decrease) in cash, cash equivalents and restricted cash (1,541) 379 68 411 Cash, cash equivalents and restricted cash, beginning of period 2,305 427 696 395 Cash, cash equivalents and restricted cash, end of period$764 $806 $764 $806 Cash and cash equivalents$663 $731 $663 $731 Restricted cash 101 75 101 75 Total cash, cash equivalents and restricted cash$764 $806 $764 $806 NATURAL GAS, OIL AND NGL PRODUCTION AND AVERAGE SALES PRICES (unaudited) Three Months Ended June 30, 2026 Natural Gas Oil NGL Total MMcf per day $/Mcf MBbl per day $/Bbl MBbl per day $/Bbl MMcfe per day $/McfeHaynesville3,187 2.62 — — — — 3,187 2.62Northeast Appalachia2,625 2.15 — — — — 2,625 2.15Southwest Appalachia1,084 2.47 14 84.71 83 26.26 1,670 3.64Total6,896 2.42 14 84.71 83 26.26 7,482 2.69 Average NYMEX Price 2.90 92.79 Average Realized Price (including realized derivatives) 2.90 81.37 25.82 3.12 Three Months Ended June 30, 2025 Natural Gas Oil NGL Total MMcf per day $/Mcf MBbl per day $/Bbl MBbl per day $/Bbl MMcfe per day $/McfeHaynesville2,978 3.12 — — — — 2,978 3.12Northeast Appalachia2,662 2.65 — — — — 2,662 2.65Southwest Appalachia956 3.11 18 54.47 83 23.19 1,562 3.75Total6,596 2.93 18 54.47 83 23.19 7,202 3.08 Average NYMEX Price 3.44 63.74 Average Realized Price (including realized derivatives) 2.98 55.89 23.08 3.14 Six Months Ended June 30, 2026 Natural Gas Oil NGL Total MMcf per day $/Mcf MBbl per day $/Bbl MBbl per day $/Bbl MMcfe per day $/McfeHaynesville3,167 3.50 — — — — 3,167 3.50Northeast Appalachia2,705 3.96 — — — — 2,705 3.96Southwest Appalachia1,033 3.39 15 74.47 78 25.90 1,587 4.16Total6,905 3.67 15 74.47 78 25.90 7,459 3.81 Average NYMEX Price 3.97 82.36 Average Realized Price (including realized derivatives) 3.59 73.01 25.67 3.73 Six Months Ended June 30, 2025 Natural Gas Oil NGL Total MMcf per day $/Mcf MBbl per day $/Bbl MBbl per day $/Bbl MMcfe per day $/McfeHaynesville2,798 3.29 — — — — 2,798 3.29Northeast Appalachia2,665 3.20 — — — — 2,665 3.20Southwest Appalachia963 3.24 16 58.34 79 26.66 1,533 4.01Total6,426 3.24 16 58.34 79 26.66 6,996 3.41 Average NYMEX Price 3.55 67.58 Average Realized Price (including realized derivatives) 3.24 59.30 26.04 3.40 CAPITAL EXPENDITURES ACCRUED (unaudited) Three Months
Ended June 30, Six Months
Ended June 30,($ in millions) 2026 2025 2026 2025Drilling and completion capital expenditures: Haynesville$335 $348 $631 $634Northeast Appalachia 132 117 248 220Southwest Appalachia 189 138 345 303Total drilling and completion capital expenditures 656 603 1,224 1,157Non-drilling and completion - field 152 86 258 142Non-drilling and completion - corporate 43 38 85 90Total capital expenditures$851 $727 $1,567 $1,389 NON-GAAP FINANCIAL MEASURES
As a supplement to the financial results prepared in accordance with U.S. GAAP, Expand Energy’s quarterly earnings releases contain certain financial measures that are not prepared or presented in accordance with U.S. GAAP. These non-GAAP financial measures include Adjusted Net Income, Adjusted Diluted Earnings Per Common Share, Adjusted EBITDAX, Free Cash Flow, Adjusted Free Cash Flow and Net Debt. A reconciliation of each financial measure to its most directly comparable GAAP financial measure is included in the tables below. Management believes these adjusted financial measures are a meaningful adjunct to earnings and cash flows calculated in accordance with GAAP because (a) management uses these financial measures to evaluate the Company’s trends and performance, (b) these financial measures are comparable to estimates provided by securities analysts, and (c) items excluded generally are one-time items or items whose timing or amount cannot be reasonably estimated. Accordingly, any guidance provided by the Company generally excludes information regarding these types of items.
Expand Energy's definitions of each non-GAAP measure presented herein are provided below. Because not all companies or securities analysts use identical calculations, Expand Energy’s non-GAAP measures may not be comparable to similarly titled measures of other companies or securities analysts.
Adjusted Net Income: Adjusted Net Income is defined as net income (loss) adjusted to exclude unrealized (gains) losses on derivatives, separation and other termination costs, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results, less a tax effect using applicable rates. Expand Energy believes that Adjusted Net Income facilitates comparisons of the Company's period-over-period performance, by excluding the impact of items that, in the opinion of management, do not reflect Expand Energy's core operating performance. Adjusted Net Income should not be considered an alternative to, or more meaningful than, net income (loss) as presented in accordance with GAAP.
Adjusted Diluted Earnings Per Common Share: Adjusted Diluted Earnings Per Common Share is defined as diluted earnings (loss) per common share adjusted to exclude the per diluted share amounts attributed to unrealized (gains) losses on derivatives, separation and other termination costs, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results, less a tax effect using applicable rates. Expand Energy believes that Adjusted Diluted Earnings Per Common Share facilitates comparisons of the Company's period-over-period performance, by excluding the impact of items that, in the opinion of management, do not reflect Expand Energy's core operating performance. Adjusted Diluted Earnings Per Common Share should not be considered an alternative to, or more meaningful than, earnings (loss) per common share as presented in accordance with GAAP.
Adjusted EBITDAX: Adjusted EBITDAX is defined as net income (loss) before interest expense, income tax expense (benefit), depreciation, depletion and amortization expense, exploration expense, unrealized (gains) losses on derivatives, separation and other termination costs, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results. Adjusted EBITDAX is presented as it provides investors an indication of the Company's ability to internally fund exploration and development activities and service or incur debt. Adjusted EBITDAX should not be considered an alternative to, or more meaningful than, net income (loss) as presented in accordance with GAAP.
Free Cash Flow: Free Cash Flow is defined as net cash provided by operating activities less cash capital expenditures. Free Cash Flow is a liquidity measure that provides investors additional information regarding the Company's ability to service or incur debt and return cash to shareholders. Free Cash Flow should not be considered an alternative to, or more meaningful than, net cash provided by (used in) operating activities, or any other measure of liquidity presented in accordance with GAAP.
Adjusted Free Cash Flow: Adjusted Free Cash Flow is defined as net cash provided by operating activities less cash capital expenditures and cash contributions to investments, adjusted to exclude certain items management believes affect the comparability of operating results. Adjusted Free Cash Flow is a liquidity measure that provides investors additional information regarding the Company's ability to service or incur debt and return cash to shareholders. Adjusted Free Cash Flow should not be considered an alternative to, or more meaningful than, net cash provided by (used in) operating activities, or any other measure of liquidity presented in accordance with GAAP.
Net Debt: Net Debt is defined as GAAP total debt excluding premiums, discounts, and deferred issuance costs less cash and cash equivalents. Net Debt is useful to investors as a widely understood measure of liquidity and leverage, but this measure should not be considered as an alternative to, or more meaningful than, total debt presented in accordance with GAAP.
Net debt to Adjusted EBITDAX: Net debt to Adjusted EBITDAX is a non-GAAP measure and is defined as Net Debt divided by an annualized Adjusted EBITDAX measure on a trailing twelve month calculation. Management uses Net Debt to Adjusted EBITDAX to assess liquidity and leverage. The Company believes this measure is useful to investors because it provides supplemental information to investors regarding its ability internally fund exploration and development activities and service or incur debt. However, this measure should not be considered as an alternative to, or more meaningful than, total debt or net income (loss) as presented in accordance with GAAP.
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (unaudited) Three Months
Ended June 30, Six Months
Ended June 30,($ in millions) 2026 2025 2026 2025 Net income (GAAP)$522 $968 $1,681 $719 Adjustments: Unrealized (gains) losses on derivatives (153) (842) (432) 127 Separation and other termination costs — — 9 — (Gains) losses on sales of assets — (4) 1 (4)Other operating expense, net 3 32 13 58 Gains on purchases, exchanges or extinguishments of debt (37) (3) (37) (3)Contract amortization (68) (72) (98) (124)Other (6) (8) (18) (12)Tax effect of adjustments(a) 56 194 121 (9)Adjusted net income (Non-GAAP)$317 $265 $1,240 $752 (a)The three- and six-month periods ended June 30, 2026 and June 30, 2025 include a tax effect attributed to the reconciling adjustments using a statutory rate of 22%. RECONCILIATION OF EARNINGS (LOSS) PER COMMON SHARE TO ADJUSTED DILUTED EARNINGS PER COMMON SHARE (unaudited) Three Months
Ended June 30, Six Months
Ended June 30,($/share) 2026 2025 2026 2025 Earnings per common share (GAAP)$2.19 $4.07 $7.03 $3.04 Effect of dilutive securities — (0.05) (0.01) (0.05)Diluted earnings per common share (GAAP)$2.19 $4.02 $7.02 $2.99 Adjustments: Unrealized (gains) losses on derivatives (0.64) (3.50) (1.80) 0.53 Separation and other termination costs — — 0.04 — (Gains) losses on sales of assets — (0.02) 0.01 (0.02)Other operating expense, net 0.01 0.13 0.05 0.24 Gains on purchases, exchanges or extinguishments of debt (0.16) (0.01) (0.16) (0.01)Contract amortization (0.29) (0.30) (0.41) (0.51)Other (0.03) (0.03) (0.08) (0.05)Tax effect of adjustments(a) 0.25 0.81 0.50 (0.04)Adjusted diluted earnings per common share (Non-GAAP)$1.33 $1.10 $5.17 $3.13 (a)The three- and six-month periods ended June 30, 2026 and June 30, 2025 include a tax effect attributed to the reconciling adjustments using a statutory rate of 22%. RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDAX (unaudited) Three Months
Ended June 30, Six Months
Ended June 30,($ in millions) 2026 2025 2026 2025 Net income (GAAP)$522 $968 $1,681 $719 Adjustments: Interest expense 43 60 102 119 Income tax expense 150 260 480 190 Depreciation, depletion and amortization 722 769 1,433 1,480 Exploration 16 20 30 27 Unrealized (gains) losses on derivatives (153) (842) (432) 127 Separation and other termination costs — — 9 — (Gains) losses on sales of assets — (4) 1 (4)Other operating expense, net 3 32 13 58 Gains on purchases, exchanges or extinguishments of debt (37) (3) (37) (3)Contract amortization (68) (72) (98) (124)Other (15) (12) (31) (18)Adjusted EBITDAX (Non-GAAP)$1,183 $1,176 $3,151 $2,571 RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW (unaudited) Three Months
Ended June 30, Six Months
Ended June 30,($ in millions) 2026 2025 2026 2025 Net cash provided by operating activities (GAAP)$1,096 $1,322 $3,498 $2,418 Cash capital expenditures (753) (657) (1,460) (1,220)Free cash flow (Non-GAAP) 343 665 2,038 1,198 Cash distributions from investments — — 10 — Cash contributions to investments — (5) (1) (9)Cash paid for merger expenses — 32 — 80 Adjusted free cash flow (Non-GAAP)$343 $692 $2,047 $1,269 RECONCILIATION OF TOTAL DEBT TO NET DEBT (unaudited) ($ in millions)June 30,
2026 December 31,
2025Total debt (GAAP)$3,685 $5,009 Premiums, discounts and issuance costs on debt 53 16 Principal amount of debt 3,738 5,025 Cash and cash equivalents (663) (616)Net debt (Non-GAAP)$3,075 $4,409 RECONCILIATION OF NET INCOME TO ADJUSTED EBITDAX TRAILING TWELVE MONTHS (unaudited) Three Months Ended
June 30, 2026 Three Months Ended
March 31, 2026 Three Months Ended
December 31, 2025 Three Months Ended
September 30, 2025 Trailing Twelve
Months($ in millions) Net income (GAAP)$522 $1,159 $553 $547 $2,781 Adjustments: Interest expense 43 59 59 57 218 Income tax expense 150 330 134 139 753 Depreciation, depletion and amortization 722 711 759 741 2,933 Exploration 16 14 16 3 49 Unrealized gains on derivatives (153) (279) (179) (309) (920)Separation and other termination costs — 9 — 5 14 Losses on sales of assets — 1 68 1 70 Other operating expense (income), net 3 10 11 (40) (16)Impairments — — 37 — 37 Gains on purchases, exchanges or extinguishments of debt (37) — — (1) (38)Contract amortization (68) (30) (32) (47) (177)Other (15) (16) (1) (14) (46)Adjusted EBITDAX (Non-GAAP)$1,183 $1,968 $1,425 $1,082 $5,658 NET DEBT TO ADJUSTED EBITDAX (unaudited) ($ in millions)June 30,
2026Net debt (Non-GAAP)$3,075Adjusted EBITDAX (Non-GAAP)(a)$5,658Net debt to Adjusted EBITDAX (Non-GAAP) 0.5 (a)Adjusted EBITDAX using a trailing twelve month calculation.
