EX-99.1 2 exe-ex_991x20240930x8kxpr.htm EX-99.1 Document
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擴展能源公司公佈2024年第三季度業績報告，提供2025年資本和運營計劃初步內容，並宣布增強資本回報框架

2024年10月29日，奧克拉荷馬市 - 環球能源公司（NASDAQ:EXE）（「環球能源」或「公司」）今日公佈了2024年第三季度財務和運營結果。此外，該公司提供了其2025年資本和運營計劃的初步內容，並宣布了其強化的資本回報框架的詳細信息。2024年10月1日，環球能源宣布完成了先前披露的切薩皮克能源公司（「切薩皮克」）和美國西南能源公司（「西南能源」）之間的合併。

傳承切薩皮克第三季度重點
•經營活動提供的淨現金為4.22億美元

•凈利潤損失達1.14億美元，或每股全稀釋股份0.85美元；調整後的凈利潤(1) 達2200萬美元，或每股0.16美元

•調整後的EBITDAX(1) 36500萬美元

•淨生產約2.65 bcf/d的天然氣（100%為天然氣）。

擴大能源亮點
•將年度協同效益目標提高了10000萬美元；預計到2025年可達到約22500萬美元，並在2027年年底前實現約50000萬美元的年度協同效益。

•於第四季初，標普和惠譽將信用評級升級為投資級（BBb-）

•2024年12月將支付每普通股0.575美元的季度基礎股息，連續第15個季度支付股息。

•2025年預期資本支出約為27億美元，預期凈產量約為每天7十億立方英尺（約占91%天然氣）

•強化資本回饋框架，更有效地向股東返現並減少淨債務；宣布新的10億美元股票回購授權
(1) 非依照通用會計準則（GAAP）的財務指標定義及每項非GAAP財務指標與最直接可比的GAAP財務指標的調和資訊均附於本資訊公告之末。

「我們強勁的第三季度業績、最近的投資級評級和2025年初步展望展示了我們具有優勢的資產組合和強大的財務基礎的力量，」Expand Energy的總裁兼首席執行官Nick Dell’Osso表示。「我們的整合努力已經開始發揮作用，使我們能夠將我們的年度協同預期提高25％至50000萬美元，同時我們努力降低我們的盈餘平衡成本並更有效地滿足市場需求。作為最大的國內天然氣生產商，也是全球頂尖生產商，我們致力於應對對經濟實惠、可靠、低碳能源的需求，為所有利益相關者拓展機遇。」


投資人聯繫:媒體聯繫人：擴大能源公司
Chris Ayres
(405) 935-8870
ir@expandenergy.com
Brooke Coe
(405) 935-8878
media@expandenergy.com
6100北Western大道
郵政信箱18496號
奧克拉荷馬城，奧克拉荷馬州，郵編73154

運營更新

在第三季度，舊大陸Chesapeake平均操作七台鑽井機鑽井30口井，並接通七口井，使凈產量達到每天約2.65億立方英尺天然氣（100%天然氣）。此外，該公司建立了18口已鑽但未完成（"DUCs"）井和12口推遲投產（"TILs"）井的庫存。有關第三季度產量、資本支出和活動的詳細分析可在附加投影片中找到，已發布在https://investors.expandenergy.com/events-presentations。

擴大能源繼續執行其之前披露的計劃，延遲完工和新的TILs。截至2024年10月1日，合併公司擁有58個DUCs，不包括在運作庫存內的，以及58個被推遲的TILs。該公司打算在市場條件允許的情況下謹慎啟動生產。

擴大能源目前運行12台鉆機（8台在Haynesville、2台在東北阿巴拉契亞和2台在西南阿巴拉契亞），還有6個完井工作隊（3個在Haynesville、2個在東北阿巴拉契亞和1個在西南阿巴拉契亞）。在當前市場條件下，該公司預計在2025年第一季度淘汰兩台鉆機。

2025年度協同效應展望和初步資本及營運計劃

擴能源將其預期每年能源調和前景提高了10000萬美元，達到了50000萬美元。公司預計在2025年實現大約22500萬美元的協同效應，並在2027年年底前實現5億美元的年度協同效應。

在2025年，根據目前的市場條件，該公司預計將運行10至12台鑽井設備，並投資約27億美元，產出預估每日約7億立方英尺當量的能源。能源公司將在2025年初提供完整指導。

股東回報更新

Expand Energy計劃於2024年12月4日向截至2024年11月14日收盤時持股人支付每股0.575美元的季度基本股息。

該公司今日宣布了加強的資本回報架構，旨在更有效地將現金返還給股東並減少淨債務。 該計劃預計將於2025年1月1日生效，並將重點放在每股2.30美元的基本股息和5,0000萬美元的年度淨債務減少上。 一旦這兩項資金到位，預期將有75%的剩餘自由現金流依據市場情況適當分配，用於股份回購和額外的股息支付。 剩餘的自由現金流將保留在資產負債表上。

隨著加強的框架，擴大能源的董事會批准了一項10億美元的回購授權。
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會議看漲信息

已安排於2024年10月30日美東時間上午9點進行的會議看漲討論結果和初步2025年計劃。參與者可在https://edge.media-server.com/mmc/p/mdfco2xg/上訪問現場網絡廣播。想提問的參與者可以在https://register.vevent.com/register/BI547bab40e4fe448382fe18b31ab58c03註冊，並將收到撥入信息和獨特的PIN碼以加入會議。會議看漲的鏈接將在https://investors.expandenergy.com/上提供。會議結束後將在該網站上提供重播。

基本報表、非GAAP財務指標以及2024年展望和預測

在這則新聞稿中使用的每項非依據通用會計原則（GAAP）的財務指標的調解，已列於以下。公司2024年第三季度的財務和營運結果的更多詳細信息，以及通常被某些證券分析師排除的項目進行調整的非依據通用會計原則的指標，均可於該公司網站上獲得。不應將非依據通用會計原則的指標視為GAAP指標的替代。管理層對2024年的更新指引和2025年初步計劃可在該公司網站www.expandenergy.com上找到。

Expand Energy Corporation（納斯達克：EXE）是美國最大的獨立天然氣生產商，由專注於打破行業傳統成本和市場交付模式的具有奉獻精神和創新精神的員工提供動力，以負責任的方式開發國內最豐富的天然氣盆地資產。Expand Energy回報驅動的策略旨在通過利用其規模、財務實力和運營執行力為股東創造可持續價值。Expand Energy致力於擴大美國的能源範圍，以促使更具成本效益、可靠且低碳的未來。
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Forward-Looking Statements

This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include our current expectations or forecasts of future events, including matters relating to the combined company after the merger with Southwestern Energy Company (“Southwestern”), armed conflict and instability in Europe and the Middle East, along with the effects of the current global economic environment, and the impact of each on our business, financial condition, results of operations and cash flows, actions by, or disputes among or between, members of OPEC+ and other foreign oil-exporting countries, market factors, market prices, our ability to meet debt service requirements, our ability to continue to pay cash dividends, the amount and timing of any cash dividends and our ESG initiatives. Forward-looking and other statements in this release regarding our environmental, social and other sustainability plans and goals are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the SEC. In addition, historical, current, and forward-looking environmental, social and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Forward-looking statements often address our expected future business, financial performance and financial condition, and often contain words such as "expect," “could,” “may,” "anticipate," "intend," "plan," “ability,” "believe," "seek," "see," "will," "would," “estimate,” “forecast,” "target," “guidance,” “outlook,” “opportunity” or “strategy.” The absence of such words or expressions does not necessarily mean the statements are not forward-looking.

Although we believe the expectations and forecasts reflected in our forward-looking statements are reasonable, they are inherently subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. No assurance can be given that such forward-looking statements will be correct or achieved or that the assumptions are accurate or will not change over time. Particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include:

•conservation measures and technological advances could reduce demand for natural gas and oil;
•negative public perceptions of our industry;
•competition in the natural gas and oil exploration and production industry;
•the volatility of natural gas, oil and NGL prices, which are affected by general economic and business conditions, as well as increased demand for (and availability of) alternative fuels and electric vehicles;
•risks from regional epidemics or pandemics and related economic turmoil, including supply chain constraints;
•write-downs of our natural gas and oil asset carrying values due to low commodity prices;
•significant capital expenditures are required to replace our reserves and conduct our business;
•our ability to replace reserves and sustain production;
•uncertainties inherent in estimating quantities of natural gas, oil and NGL reserves and projecting future rates of production and the amount and timing of development expenditures;
•drilling and operating risks and resulting liabilities;
•our ability to generate profits or achieve targeted results in drilling and well operations;
•leasehold terms expiring before production can be established;
•risks from our commodity price risk management activities;
•uncertainties, risks and costs associated with natural gas and oil operations;
•our need to secure adequate supplies of water for our drilling operations and to dispose of or recycle the water used;
•pipeline and gathering system capacity constraints and transportation interruptions;
•our plans to participate in the LNG export industry;
•terrorist activities and/or cyber-attacks adversely impacting our operations;
•risks from failure to protect personal information and data and compliance with data privacy and security laws and regulations;
•disruption of our business by natural or human causes beyond our control;
•a deterioration in general economic, business or industry conditions;
•the impact of inflation and commodity price volatility, including as a result of armed conflict and instability in Europe and the Middle East, along with the effects of the current global economic environment, on our business, financial condition, employees, contractors, vendors and the global demand for natural gas and oil and on U.S. and global financial markets;
•our inability to access the capital markets on favorable terms;
•the limitations on our financial flexibility due to our level of indebtedness and restrictive covenants from our indebtedness;
•our actual financial results after emergence from bankruptcy may not be comparable to our historical financial information;
•risks related to acquisitions or dispositions, or potential acquisitions or dispositions, including risks related to the merger with Southwestern, such as risks related to loss of management personnel, other key employees, customers, suppliers, vendors, landlords, joint venture partners and other business partners following the merger; risks related to disruption of management time from ongoing business operations due to integration; the risk of any litigation relating to the transaction; the risk that problems may arise in successfully integrating the businesses of the companies, which may result in the combined company not operating as effectively and efficiently as expected; and the risk that the combined company may be unable to achieve synergies or other anticipated benefits of the transaction or it may take longer than expected to achieve those synergies or benefits;
•our ability to achieve and maintain ESG certifications, goals and commitments;
•legislative, regulatory and ESG initiatives, addressing environmental concerns, including initiatives addressing the impact of global climate change or further regulating hydraulic fracturing, methane emissions, flaring or water disposal;
•federal and state tax proposals affecting our industry;
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•risks related to an annual limitation on the utilization of our tax attributes, as well as trading in our common stock, additional issuance of common stock, and certain other stock transactions, which could lead to an additional, potentially more restrictive, annual limitation; and
•other factors that are described under Risk Factors in Item 1A of Part I of our Annual Report on Form 10-K.

We caution you not to place undue reliance on the forward-looking statements contained in this release, which speak only as of the filing date, and we undertake no obligation to update this information. We urge you to carefully review and consider the disclosures in this release and our filings with the SEC that attempt to advise interested parties of the risks and factors that may affect our business.


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CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
($ in millions, except per share data)September 30, 2024December 31, 2023
Assets
Current assets:
Cash and cash equivalents$1,044 $1,079 
Restricted cash76 74 
Accounts receivable, net261 593 
Derivative assets199 637 
Other current assets217 226 
Total current assets1,7972,609
Property and equipment:
Natural gas and oil properties, successful efforts method
Proved natural gas and oil properties12,373 11,468 
Unproved properties1,806 1,806 
Other property and equipment518 497 
Total property and equipment14,697 13,771 
Less: accumulated depreciation, depletion and amortization(4,743)(3,674)
Total property and equipment, net9,954 10,097 
Long-term derivative assets15 74 
Deferred income tax assets1,038 933 
Other long-term assets588 663 
Total assets$13,392 $14,376 
Liabilities and stockholders' equity
Current liabilities:
Accounts payable$264 $425 
Accrued interest41 39 
Derivative liabilities5 3 
Other current liabilities589 847 
Total current liabilities899 1,314 
Long-term debt, net2,017 2,028 
Long-term derivative liabilities— 9 
Asset retirement obligations, net of current portion271 265 
Other long-term liabilities17 31 
Total liabilities3,204 3,647 
Contingencies and commitments
Stockholders' equity:
Common stock, $0.01 par value, 450,000,000 shares authorized: 135,107,576 and 130,789,936 shares issued1 1 
Additional paid-in capital5,778 5,754 
Retained earnings4,409 4,974 
Total stockholders' equity10,188 10,729 
Total liabilities and stockholders' equity$13,392 $14,376 
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
($ in millions, except per share data)
Revenues and other:
Natural gas, oil and NGL$407 $682 $1,374 $2,784 
Marketing193 724 641 1,987 
Natural gas and oil derivatives46 106 207 1,195 
Gains on sales of assets2 — 12 807 
Total revenues and other648 1,512 2,234 6,773 
Operating expenses:
Production50 73 158 293 
Gathering, processing and transportation152 192 479 663 
Severance and ad valorem taxes11 27 58 136 
Exploration2 4 7 19 
Marketing192 723 656 1,985 
General and administrative39 29 133 95 
Separation and other termination costs— — 23 3 
Depreciation, depletion and amortization335 382 1,082 1,148 
Other operating expense, net22 3 55 15 
Total operating expenses803 1,433 2,651 4,357 
Income (loss) from operations(155)79 (417)2,416 
Other income (expense):
Interest expense(20)(23)(59)(82)
Losses on purchases, exchanges or extinguishments of debt— — (2)— 
Other income17 15 58 48 
Total other income (expense)(3)(8)(3)(34)
Income (loss) before income taxes(158)71 (420)2,382 
Income tax expense (benefit)(44)1 (105)532 
Net income (loss)$(114)$70 $(315)$1,850 
Earnings (loss) per common share:
Basic$(0.85)$0.53 $(2.39)$13.86 
Diluted$(0.85)$0.49 $(2.39)$12.90 
Weighted average common shares outstanding (in thousands):
Basic133,794 132,153 131,958 133,460 
Diluted133,794142,348131,958143,463

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
 Three Months Ended September 30,Nine Months Ended September 30,
($ in millions)2024202320242023
Cash flows from operating activities:
Net income (loss)$(114)$70 $(315)$1,850 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization335 382 1,082 1,148 
Deferred income tax expense (benefit)(44)(80)(105)319 
Derivative gains, net(46)(106)(207)(1,195)
Cash receipts on derivative settlements, net207 216 695 167 
Share-based compensation10 9 29 25 
Gains on sales of assets(2)— (12)(807)
Losses on purchases, exchanges or extinguishments of debt— — 2 — 
Other(9)6 (16)35 
Changes in assets and liabilities85 9 30 368 
Net cash provided by operating activities4225061,1831,910
Cash flows from investing activities:
Capital expenditures(298)(423)(1,021)(1,450)
Receipts of deferred consideration— — 116 — 
Contributions to investments(26)(61)(71)(149)
Proceeds from divestitures of property and equipment5 4 17 1,967 
Net cash provided by (used in) investing activities(319)(480)(959)368
Cash flows from financing activities:
Proceeds from Credit Facility— — — 1,125 
Payments on Credit Facility— — — (2,175)
Funds held for transition services— (6)— 91 
Proceeds from warrant exercise— — 1 — 
Debt issuance and other financing costs— — (4)— 
Cash paid to repurchase and retire common stock— (132)— (313)
Cash paid for common stock dividends(78)(77)(254)(412)
Net cash used in financing activities(78)(215)(257)(1,684)
Net increase (decrease) in cash, cash equivalents and restricted cash25 (189)(33)594 
Cash, cash equivalents and restricted cash, beginning of period1,0959751,153192
Cash, cash equivalents and restricted cash, end of period$1,120 $786 $1,120 $786 
Cash and cash equivalents$1,044 $713 $1,044 $713 
Restricted cash76737673
Total cash, cash equivalents and restricted cash$1,120 $786 $1,120 $786 
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NATURAL GAS, OIL AND NGL PRODUCTION AND AVERAGE SALES PRICES (unaudited)
Three Months Ended September 30, 2024
Natural GasOilNGLTotal
MMcf per day$/McfMBbl per day$/BblMBbl per day$/BblMMcfe per day$/Mcfe
Marcellus1,531 1.51 — — — — 1,531 1.51 
Haynesville1,116 1.88 — — — — 1,116 1.88 
Total2,647 1.67 — — — — 2,647 1.67 
Average NYMEX Price2.16 — 
Average Realized Price (including realized derivatives)2.51 — — 2.51 
Three Months Ended September 30, 2023
Natural GasOilNGLTotal
MMcf per day$/McfMBbl per day$/BblMBbl per day$/BblMMcfe per day$/Mcfe
Marcellus1,734 1.63 — — — — 1,734 1.63 
Haynesville1,568 2.15 — — — — 1,568 2.15 
Eagle Ford76 2.52 9 82.33 10 25.76 193 6.36 
Total3,378 1.89 9 82.33 10 25.76 3,495 2.12 
Average NYMEX Price2.55 82.26 
Average Realized Price (including realized derivatives)2.58 82.33 25.76 2.79 
Nine Months Ended September 30, 2024
Natural GasOilNGLTotal
MMcf per day$/McfMBbl per day$/BblMBbl per day$/BblMMcfe per day$/Mcfe
Marcellus1,601 1.65 — — — — 1,601 1.65 
Haynesville1,261 1.88 — — — — 1,261 1.88 
Total2,862 1.75 — — — — 2,862 1.75 
Average NYMEX Price2.10 — 
Average Realized Price (including realized derivatives)2.64 — — 2.64 
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Nine Months Ended September 30, 2023
Natural GasOilNGLTotal
MMcf per day$/McfMBbl per day$/BblMBbl per day$/BblMMcfe per day$/Mcfe
Marcellus1,845 2.24 — — — — 1,845 2.24 
Haynesville1,569 2.26 — — — — 1,569 2.26 
Eagle Ford96 2.22 26 77.41 12 25.61 323 7.82 
Total3,510 2.25 26 77.41 12 25.61 3,737 2.73 
Average NYMEX Price2.69 77.39 
Average Realized Price (including realized derivatives)2.56 72.10 25.61 2.99 


CAPITAL EXPENDITURES ACCRUED (unaudited)

Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
($ in millions)
Drilling and completion capital expenditures:
Marcellus$82 $91 $280 $324 
Haynesville151 191 477 704 
Eagle Ford— 9 — 222 
Total drilling and completion capital expenditures233 291 757 1,250 
Non-drilling and completion - field32 48 106 100 
Non-drilling and completion - corporate24 18 73 56 
Total capital expenditures$289 $357 $936 $1,406 

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NON-GAAP FINANCIAL MEASURES

As a supplement to the financial results prepared in accordance with U.S. GAAP, Expand Energy’s quarterly earnings releases contain certain financial measures that are not prepared or presented in accordance with U.S. GAAP. These non-GAAP financial measures include Adjusted Net Income, Adjusted Diluted Earnings Per Common Share, Adjusted EBITDAX, Free Cash Flow, Adjusted Free Cash Flow and Net Debt. A reconciliation of each financial measure to its most directly comparable GAAP financial measure is included in the tables below. Management believes these adjusted financial measures are a meaningful adjunct to earnings and cash flows calculated in accordance with GAAP because (a) management uses these financial measures to evaluate the company’s trends and performance, (b) these financial measures are comparable to estimates provided by certain securities analysts, and (c) items excluded generally are one-time items or items whose timing or amount cannot be reasonably estimated. Accordingly, any guidance provided by the company generally excludes information regarding these types of items.

Expand Energy's definitions of each non-GAAP measure presented herein are provided below. Because not all companies or securities analysts use identical calculations, Expand Energy’s non-GAAP measures may not be comparable to similarly titled measures of other companies or securities analysts.

Adjusted Net Income: Adjusted Net Income is defined as net income (loss) adjusted to exclude unrealized (gains) losses on natural gas and oil derivatives, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results, less a tax effect using applicable rates. Expand Energy believes that Adjusted Net Income facilitates comparisons of the company's period-over-period performance, which many investors use in making investment decisions and evaluating operational trends and performance. Adjusted Net Income should not be considered an alternative to, or more meaningful than, net income (loss) as presented in accordance with GAAP.

Adjusted Diluted Earnings Per Common Share: Adjusted Diluted Earnings Per Common Share is defined as diluted earnings (loss) per common share adjusted to exclude the per diluted share amounts attributed to unrealized (gains) losses on natural gas and oil derivatives, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results, less a tax effect using applicable rates. Expand Energy believes that Adjusted Diluted Earnings Per Common Share facilitates comparisons of the company's period-over-period performance, which many investors use in making investment decisions and evaluating operational trends and performance. Adjusted Diluted Earnings Per Common Share should not be considered an alternative to, or more meaningful than, earnings (loss) per common share as presented in accordance with GAAP.

Adjusted EBITDAX: Adjusted EBITDAX is defined as net income (loss) before interest expense, income tax expense (benefit), depreciation, depletion and amortization expense, exploration expense, unrealized (gains) losses on natural gas and oil derivatives, separation and other termination costs, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results. Adjusted EBITDAX is presented as it provides investors an indication of the company's ability to internally fund exploration and development activities and service or incur debt. Adjusted EBITDAX should not be considered an alternative to, or more meaningful than, net income (loss) as presented in accordance with GAAP.

Free Cash Flow: Free Cash Flow is defined as net cash provided by (used in) operating activities less cash capital expenditures. Free Cash Flow is a liquidity measure that provides investors additional information regarding the company's ability to service or incur debt and return cash to shareholders. Free Cash Flow should not be considered an alternative to, or more meaningful than, net cash provided by (used in) operating activities, or any other measure of liquidity presented in accordance with GAAP.

Adjusted Free Cash Flow: Adjusted Free Cash Flow is defined as net cash provided by (used in) operating activities less cash capital expenditures and cash contributions to investments, adjusted to exclude certain items management believes affect the comparability of operating results. Adjusted Free Cash Flow is a liquidity measure that provides investors additional information regarding the company's ability to service or incur debt and return cash to shareholders and is used to determine Expand Energy's returns framework payout. Adjusted Free Cash Flow should not be considered an alternative to, or more meaningful than, net cash provided by (used in) operating activities, or any other measure of liquidity presented in accordance with GAAP.

Net Debt: Net Debt is defined as GAAP total debt excluding premiums, discounts, and deferred issuance costs less cash and cash equivalents. Net Debt is useful to investors as a widely understood measure of liquidity and leverage, but this measure should not be considered as an alternative to, or more meaningful than, total debt presented in accordance with GAAP.
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RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
($ in millions)2024202320242023
Net income (loss) (GAAP)$(114)$70 $(315)$1,850 
Adjustments:
Unrealized (gains) losses on natural gas and oil derivatives160110 489(931)
Separation and other termination costs—— 233 
Gains on sales of assets(2)— (12)(807)
Other operating expense, net23 3 58 18 
Losses on purchases, exchanges or extinguishments of debt— — 2 — 
Other(4)(4)(17)(19)
Tax effect of adjustments(a)
(41)(24)(125)403 
Adjusted net income (Non-GAAP)$22 $155 $103 $517 
(a)
The three- and nine-month periods ended September 30, 2024 and September 30, 2023 include a tax effect attributed to the reconciling adjustments using a statutory rate of 23%.

RECONCILIATION OF EARNINGS (LOSS) PER COMMON SHARE TO ADJUSTED DILUTED EARNINGS PER COMMON SHARE (unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
($/share)2024202320242023
Earnings (loss) per common share (GAAP)$(0.85)$0.53 $(2.39)$13.86 
Effect of dilutive securities— (0.04)— (0.96)
Diluted earnings (loss) per common share (GAAP)$(0.85)$0.49 $(2.39)$12.90 
Adjustments:
Unrealized (gains) losses on natural gas and oil derivatives1.20 0.78 3.70 (6.49)
Separation and other termination costs— — 0.17 0.02 
Gains on sales of assets(0.02)— (0.09)(5.63)
Other operating expense, net0.17 0.02 0.44 0.13 
Losses on purchases, exchanges or extinguishments of debt— — 0.01 — 
Other(0.03)(0.03)(0.13)(0.13)
Tax effect of adjustments(a)
(0.31)(0.17)(0.95)2.81 
Effect of dilutive securities— — (0.03)— 
Adjusted diluted earnings per common share (Non-GAAP)$0.16 $1.09 $0.73 $3.61 
(a)
The three- and nine-month periods ended September 30, 2024 and September 30, 2023 include a tax effect attributed to the reconciling adjustments using a statutory rate of 23%.
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RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDAX (unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
($ in millions)
Net income (loss) (GAAP)$(114)$70 $(315)$1,850 
Adjustments:
Interest expense20 23 59 82 
Income tax expense (benefit)(44)1 (105)532 
Depreciation, depletion and amortization335 382 1,082 1,148 
Exploration2 4 7 19 
Unrealized (gains) losses on natural gas and oil derivatives160 110 489 (931)
Separation and other termination costs— — 23 3 
Gains on sales of assets(2)— (12)(807)
Other operating expense, net23 3 58 18 
Losses on purchases, exchanges or extinguishments of debt— — 2 — 
Other(15)(13)(57)(36)
Adjusted EBITDAX (Non-GAAP)$365 $580 $1,231 $1,878 
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW (unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
($ in millions)
Net cash provided by operating activities (GAAP)$422 $506 $1,183 $1,910 
Cash capital expenditures(298)(423)(1,021)(1,450)
Free cash flow (Non-GAAP)124 83 162 460 
Cash contributions to investments(26)(61)(71)(149)
Free cash flow associated with divested assets(a)
— (57)— (195)
Adjusted free cash flow (Non-GAAP)$98 $(35)$91 $116 
(a)In March and April of 2023, we closed two divestitures of certain Eagle Ford assets. Due to the structure of these transactions, both of which had an effective date of October 1, 2022, the cash generated by these assets was delivered to the respective buyers through a reduction in the proceeds we received at the closing of each transaction. Additionally, in August 2023, we entered into an agreement to sell the final portion of our Eagle Ford assets, with an economic effective date of February 1, 2023. Included within the adjustment above reflects the cash flows from the three months ended September 30, 2023, associated with the final portion of our Eagle Ford assets as the cash generated by those assets were delivered to the buyer through a reduction in the proceeds we received once the transaction closed during the fourth quarter of 2023.
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RECONCILIATION OF TOTAL DEBT TO NET DEBT (unaudited)
($ in millions)September 30, 2024
Total debt (GAAP)$2,017 
Premiums and issuance costs on debt(67)
Principal amount of debt1,950 
Cash and cash equivalents(1,044)
Net debt (Non-GAAP)$906 
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