Expand Energy Q4 Earnings Call Highlights

Expand Energy (NASDAQ:EXE) executives used the company’s fiscal 2025 fourth-quarter and full-year earnings call to emphasize operational gains in its core gas assets, an increased focus on marketing and commercial execution, and a continued priority on debt reduction amid volatile natural gas prices.

Operational performance and cost improvements

CEO Mike Wichterich described 2025 as a “phenomenal execution year,” highlighting a 15% reduction in Haynesville breakevens. He said the improvement was significant not only for reinvestment rates but also for inventory quality, noting that the company’s location set has shifted toward lower-breakeven opportunities.

Management also pointed to maintenance capital efficiency as evidence of the cost improvements. Josh Viets said that compared with a year earlier, the company’s maintenance capital estimate to deliver roughly 7.5 Bcf/d would have been about $225 million higher, underscoring stronger underlying economics. He added that the company is maintaining flexibility based on its mid-cycle price view of $3.50–$4.00 natural gas, saying the firm can adjust volumes depending on market conditions.

On Haynesville productivity, Viets said the company’s inventory depth and quality are “unmatched,” and that Expand’s wells and rigs compare favorably to broader industry averages. He attributed performance gains to drilling efficiency, self-sourcing sand to reduce inputs and improve completion outcomes, and evolving completion designs—saying the company has progressed from a “gen one” design at merger close to a “gen three” design with improved results. Viets also said the company expects first-year cumulative production improvements in 2026 to be sustainable.

Gas market volatility and hedging

Wichterich said natural gas price volatility was evident throughout the quarter and reiterated Expand’s commitment to hedging. He said the company’s hedging program was effective in 2025, generating $200 million in gains. Management also discussed storage as another tool to manage volatility. Dan Turco said Expand owns 5 Bcf of storage capacity, including about 3.5 Bcf added in the most recent quarter on top of 1.5 Bcf previously held. Turco said the company has already made money using the storage and intends to “turn” it more, while noting that acquiring additional storage capacity is competitive because demand growth has outpaced storage additions.

Marketing shift and “beyond the wellbore” strategy

A central theme of the call was Expand’s increased focus on marketing and commercial execution, which Wichterich framed as necessary in a changing natural gas business. He said the company believes natural gas demand could grow 35%–40% over the next five years and argued producers can no longer “give away margin” to intermediaries.

Management described the marketing function as comprising three areas:

• Accessing premium markets: Wichterich said Expand has made progress moving away from predominantly in-basin sales, stating the company is now close to 50% in premium market exposure and expects this to be a near-term catalyst for improved realizations.
• Managing volatility: The company cited hedging and storage transactions as tools to support performance during low-price environments.
• Facilitating and capturing new demand: Wichterich said Expand has not progressed as much as it wants in this area and expects to do better, pointing to this as a key reason for relocating its commercial presence to Houston to compete more effectively.

Wichterich said the company is targeting a $0.20 per Mcf uplift in realizations across the business, which he characterized as achievable but requiring aggressive execution across all three levers. He quantified the impact as roughly $500 million in EBITDA. He suggested the timeframe for achieving the uplift is about three to five years, adding he hopes to reach it closer to three years.

Turco discussed pipeline optionality and Gulf Coast marketing dynamics, noting that NG3 began flowing in October and provides Expand additional access to Gillis, which management views as a premium market over time as LNG demand grows. He said that in the near term, the company is roughly “about even” when considering capacity payments and uplift, but expects Gillis to become more premium. Turco also highlighted Expand’s ability to shift volumes between Gillis and Perryville, saying the team has been capturing value from that optionality.

Leadership transition and Houston move

Wichterich confirmed recent changes in senior leadership and said the company is looking for a CEO with a “bigger view of energy” and the full value chain, including getting closer to customers in the U.S. and Europe. He said a CEO search previously took about six months and suggested this process could take six to nine months due to the company’s increased complexity, adding he plans to remain in place until the right candidate is found.

While the company is shifting commercial focus to Houston, Wichterich said operational leadership and the core operations team will remain in Oklahoma City, with Viets continuing to lead operations.

Capital allocation: debt reduction first, returns and M&A considered

Wichterich said Expand is following through on a prior commitment made during the Southwestern merger to reduce debt, while also returning “a lot of money” to shareholders. He reiterated that in a volatile commodity business, a “non-negotiable” strong balance sheet comes first, with the company seeking to do both debt reduction and shareholder returns. He also said Expand wants to be less prescriptive about buybacks, preferring flexibility in timing.

On potential M&A, Wichterich said Expand actively reviews opportunities in its operating basins and acknowledged that acquiring liquids exposure could help margins. However, he stressed discipline and said the company passed on many transactions in 2025 because they did not meet its non-negotiables around balance sheet protection and accretion.

Separately, CFO Brittany Raiford addressed cash taxes, attributing low near-term cash taxes to benefits from the “O triple B” and said the company expects to become a full cash taxpayer later in the decade, closer to 2030, with a “stairstep” increase over the next few years.

In closing remarks, Wichterich said Expand’s operational execution remains the foundation of the business and emphasized urgency in commercial execution. “We finally feel like gas has got its moment,” he said, adding that management’s focus is on execution to capture what it views as a substantial opportunity set.

About Expand Energy (NASDAQ:EXE)

Expand Energy Corporation is an independent natural gas producer principally in the United States. Expand Energy Corporation, formerly known as Chesapeake Energy Corporation, is based in OKLAHOMA CITY.