Expand Energy Corporation Q4 FY2024 earnings call

• Expand Energy was created to respond to growing energy demand and yield stronger returns. Benefiting from premium rock returns, runway across portfolio, access to advantaged markets, and capital-efficient operations, the company enhanced its outlook for 2025. • Expect to produce approximately 7.1 Bcf per day in 2025 with $2.7 billion capital investment. Invested $300 million for 300 MMcf per day additional productive capacity to aim for 7.5 Bcf per day in 2026. • Achieving significant synergies, now expect $400 million of annual synergy target in 2025 and $500 million by year-end 2026. • Resilient financial foundation with expectation to end 2025 with less than $4.5 billion in net debt, targeting $500 million debt reduction in 2025. • Marketing program has opportunity to capitalize on position as nation's largest natural gas producer, with Dan Turco leading marketing efforts.

• Expect to produce ~7.1 Bcf per day in 2025 with $2.7 billion capital investment. • Invest $300 million for 300 MMcf per day additional productive capacity to reach 7.5 Bcf per day in 2026 if market conditions warrant. • Aim to achieve ~$400 million of annual synergy target in 2025 and $500 million by year-end 2026. • Expect to end 2025 with less than $4.5 billion in net debt. • Target $500 million debt reduction in 2025, with additional cash available for variable dividends, share repurchases, and balance sheet.

• Factors causing actual results to materially differ from forward-looking statements, including those identified in press release and SEC filings. • Market fundamentals changing, supply response to price levels, and volatility in gas market conditions.

Q: Matt Portillo asked about maximizing free cash flow at mid-cycle pricing and LNG marketing strategy.

A: Nick Dell'Osso discussed the macro view, optimal production level at $3.50-$4 Henry Hub, and LNG marketing strategy focusing on diversified revenue and connecting to markets.

Q: Doug Leggate inquired about synergy timing and inventory economics.

A: Nick Dell'Osso mentioned building out marketing business, and Josh Viets talked about inventory extension and comparative economics of portfolio.

Q: Scott Hanold asked about productive capacity flexibility and Appalachia growth.

A: Nick Dell'Osso and Josh Viets discussed flexibility in production based on market conditions and production trajectory in Appalachia.

Q: Devin McDermott questioned 2025 activity and productive capacity allocation.

A: Nick Dell'Osso and Josh Viets talked about macro view, production trajectory with deferred TILs, and allocation of incremental spending.

Q: Neil Mehta asked about return of capital and hedging strategy.

A: Nick Dell'Osso discussed debt paydown, capital allocation, and hedging strategy focusing on rolling hedges and adjusting to market prices.

Q: Paul Diamond asked about drilling activity progress and rig timing.

A: Josh Viets talked about drilling progress and rig add cadence in second half.

Q: Zach Parham inquired about D&C cost declines and production flexibility.

A: Josh Viets and Nick Dell'Osso discussed D&C cost improvement potential and production flexibility based on price scenarios.

Q: Bertrand Donnes asked about data center agreements and Appalachian growth.

A: Nick Dell'Osso talked about openness to commercial structures for data centers and Appalachian growth opportunities.