Expand Energy generates 1.177 billion dollars in quarterly operating cash
Expand Energy reported operating cash generation of 1.177 billion dollars in its third quarter and net income of 519 million dollars. The US natural gas producer completed its Twin Eagle acquisition during the period. It also continued share buybacks and updated annual capital spending guidance to approximately 3 billion dollars. Total debt was 4.6 billion dollars at the quarter’s end.
Economics & Markets··Morning
Operating cash reaches 1.177 billion dollars
Expand Energy, the US natural gas producer, released its third-quarter results on 27 October. Adjusted quarterly earnings exceeded consensus estimates.[1], [2]
Operating activities generated 1.177 billion dollars in cash. Net income was 519 million dollars, or 2.24 dollars per fully diluted share. Adjusted net income was 338 million dollars, or 1.46 dollars per share. Natural gas accounted for 92 per cent of production. The company operated an average of 11 rigs, drilled 46 wells and brought 59 wells into production during the quarter.[1]
The acquisition of Twin Eagle Holdings closed on 16 September, expanding the company’s marketing operations. Those activities generated 150 million dollars of adjusted earnings before interest, tax, depreciation and amortisation over the first nine months. Management forecast 80 million dollars for the fourth quarter, including the acquisition’s contribution. Total debt stood at 4.6 billion dollars at the quarter’s end, with a company-defined leverage ratio of 0.8 times.[1]
Buybacks continue as annual capital spending guidance changes
Expand Energy repurchased 305 million dollars of shares in the third quarter. First-nine-month buybacks reached approximately 900 million dollars, or approximately 4 per cent of shares outstanding. A further 1 billion dollars remained available under its repurchase authority. Management updated annual capital spending guidance to approximately 3 billion dollars and forecast an average of 11 to 12 rigs over the year.[1]
