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    • Expand Energy Reports Third Quarter Adjusted Net Revenue of 7 Million
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    Expand Energy Reports Third Quarter Adjusted Net Revenue of $407 Million

    Pabio Posted on

    Expand Energy reported a loss of $114 million in third-quarter earnings and adjusted net revenue of $407 million in the company’s first-ever financial results report since the company began trading. operate under the new alias.

    Executives expressed a positive outlook for 2025, despite losses reported in the quarterly report ended September 30.

    In a conference call with investors, Nick Dell’Osso, President and CEO of Expand Energy, said: “The integration of our two companies is off to a good start. In the first month, we have seen many accomplishments and are ahead of schedule on our projects. integration plans.”

    Jake Dollarhide, co-founder and CEO of Longbow Asset Management Company, said the combined entities posted higher profits than the two standalone companies, agreeing with Expand Energy executives who said the report showed good results.

    “The results report shows progress,” Dollarhide said. “It’s hard to read a lot in one quarter. I think when we have year-over-year reporting, we’ll have a better idea of ​​the health of the business.”

    Dell’Osso added that the company recorded operational gains in the latest quarterly report, which he believes will improve future margins and profitability.

    Dell’Osso said annual synergy targets have increased significantly more than its initial target. Executives said the initial $400 million annual synergy target was based on a cumulative total over a three-year period. Now the company hopes to reach $225 million in 2025 and $500 million by 2027.

    Expand Energy increased its annual synergy targets by $100 million in the first year, executives said.

    “Our integration efforts are already paying off, allowing us to increase our annual synergy expectations by 25% to $500 million, as we work to reduce our break-even costs and more efficiently achieve markets that need it,” Dell’Osso said in the release. “As the nation’s largest producer of natural gas and one of the world’s leading producers, we are built to answer the call for affordable, reliable, low-carbon energy and to expand opportunities for all stakeholders.

    A major source of increased synergies has been attributed to new drilling improvements, said Josh Viets, executive vice president and chief operating officer of Expan Energy.

    “As we have secured an additional $100 million, we have now included some synergies associated with the finish designs,” he said on the conference call during an open question-and-answer session.

    “These are all things that, with the combined teams, we can look at in their entirety and think about how we optimize the program going forward,” he said. “As teams work together, we will be able to push synergies even higher.”

    Executives said the increases were focused on raising capital and reducing overall operational costs. This includes $200 million for finalizing talent selection and overlapping uncompensated general and administrative costs, which will consolidate staff and programs across the company’s multiple offices.

    Savings on drilling and completion costs will be approximately $130 million, and $70 million will be used to reduce other operational and capital expenses, such as water infrastructure utilization and combined acreage. . The additional $100 million in annual synergies relate to design optimization, company-owned assets and financial cost reduction.

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    THE Oklahoma City-based company ended the third quarter of the year with total revenue of $648 million, cash of $422 million and adjusted earnings of $407 million.

    The company also reported an earnings per share loss of $0.85. Adjusted EPS was $0.16 for the third quarter of 2024.

    The company announced a capital repayment framework aimed at reducing the company’s net debt, which stands at $907 million.

    Expe Energy vice chairman and chief financial officer Mohit Singh said in the conference call that the framework would focus on two key aspects: returning cash to shareholders and reducing the company’s net debt.

    “We recognize that the previous framework did not do enough to put in place consistent annual deleveraging efforts,” Singh said.

    Dollarhide said the company’s performance in the market depends on the expectations it sets based on those profits.

    “Shareholders are going to be patient over the next few quarters,” Dollarhide said. “Then if the company doesn’t keep its promises, then it could become picky. And that would result in people selling more than they bought, and the stock market would suffer.”

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