EXPAND ENERGY Corp Q1 FY2024 earnings call

• In Q1, deferred 22 turn-in-lines and built 24 drilled but uncompleted wells. Curtailed base production, averaging ~200 MMcf/day in Feb and expecting ~400 MMcf/day in Q2.
• Generated free cash flow in Q1, maintained base and variable dividend program. Capital structure remains strong with credit facility reaffirmed at $2.5B aggregate commitments.
• Met interim GHG and methane intensity goals 2 years ahead of schedule. Focused on discipline, operational efficiency, free cash flow generation, and building productive capacity.
• Progressing with LNG discussions and integration planning with Southwestern to achieve cost synergies.

No specific product segment financial performance with absolute terms and revenue contribution % provided in the transcript.

• Capital guide: Tracked towards lower end of capital guide for full year due to good Q1 start; DUC build still on track.
• Production guide: Still on track for ~2.7 Bcf/day, guide unchanged despite Q1 overproduction from non-operated accounting adjustment. Flexibility in responding to market demand by bringing back TILs, DUCs, and curtailed volumes as needed.

• Natural gas market oversupply affecting current pricing.
• Uncertainties in LNG discussions and potential competition for supply.
• Volatility in natural gas demand, including impacts of data center growth on LNG portfolio.
• Regulatory uncertainties from FTC review of merger with Southwestern.

Q: Nitin Kumar asked about CapEx drivers and DUC progress A: Josh Viets explained CapEx was below guidance due to timing, lower costs, and structural changes; DUCs were a bit ahead of schedule but on track for full year DUC build Q: Nitin Kumar asked about AI and power gen demand for gas A: Domenic Dell'Osso discussed growing power gen demand, impact of stimulus and IRA, and data center growth's effect on gas demand Q: Bertrand Donnes asked about LNG portfolio and data center demand A: Domenic Dell'Osso said still engaged in LNG discussions, competition exists but strategies continue Q: Bertrand Donnes asked about synergies post-Southwestern merger A: Domenic Dell'Osso emphasized focus on supply efficiency, cost structure, and execution; merger advanced synergies Q: Zachary Parham asked about production curtailment strategy and macro environment A: Domenic Dell'Osso and Josh Viets discussed curtailments accelerating decline, demand volatility, and Haynesville production trends Q: Charles Meade asked about FTC engagement and TIL/DUC management A: Domenic Dell'Osso discussed FTC second request phase; Josh Viets talked about monitoring shutting pressure for TILs/DUCs Q: Joshua Silverstein asked about production outlook and bringing back capacity A: Josh Viets reaffirmed 2.7 Bcf/day guide, flexibility in responding to market demand; Domenic Dell'Osso discussed monitoring market conditions for capacity return Q: Neil Mehta asked about hedging framework A: Mohit Singh explained hedge the wedge program, managing capital program risk, and LNG transaction considerations Q: Paul Diamond asked about DUC/TIL cadence and volatility response A: Josh Viets discussed linear build of TILs/DUCs; Domenic Dell'Osso talked about responding to short-term vs. sustained demand Q: Kevin MacCurdy asked about curtailment drivers and production return capacity A: Josh Viets explained local market conditions driving Haynesville curtailments; same capacity return for Haynesville and Appalachia