Expand Energy reports Q3 loss on Chesapeake results
Expand Energy, the company that emerged from Chesapeake Energy’s $7.4bn acquisition earlier this year of Southwestern Energy, said it had a net loss of $114mn in Q3 2024, reflecting only the results of Chesapeake, since the combination with Southwestern did not take effect until October 1, 2024.
Chesapeake had net income of $70mn in the comparable 2023 period.
Expand Energy’s Q3 natural gas production – again representing legacy Chesapeake assets – averaged 2.65bn ft3/day, down from Chesapeake’s legacy production of 3.4bn ft3/day in Q3 2023.
In its Q3 results presentation, Expand Energy noted Southwestern Energy had average Q3 natural production of 3.5bn ft3/day, giving the combined company pro forma production of 6.12bn ft3/day and vaulting it past EQT as the largest independent natural gas producer in the US.
“Our integration efforts are already delivering, allowing us to raise our annual synergy expectations by 25% to $500mn, as we drive to lower our breakeven costs and more efficiently reach markets in need,” Expand Energy CEO Nick Dell’Osso said. “As the largest domestic producer of natural gas, and a top producer globally, we are built to answer the call for affordable, reliable, lower carbon energy and expand opportunity for all stakeholders.”
In 2025, Expand said, it expected to invest $2.7bn to run 10-12 rigs, yielding anticipated 2025 production of about 7bn ft3-equivalent/day.
Also on October 29, EQT reported Q3 2024 sales volumes of about 6.3bn ft3-e/day, but did not present its average natural gas production, which was impacted by curtailments of about 1bn ft3/day starting in February and continuing through the summer.