Item 1. Condensed Consolidated Financial Statements

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Item 1. Condensed Consolidated Financial Statements

EXPAND ENERGY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)


($ in millions, except per share data)	March 31, 2026		December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	2,220	$	616
Restricted cash	85		80
Accounts receivable, net	1,290		1,599
Derivative assets	429		264

Other current assets	363		357
Total current assets	4,387		2,916
Property and equipment:
Natural gas and oil properties, successful efforts method
Proved natural gas and oil properties	27,336		26,606
Unproved properties	5,429		5,478
Other property and equipment	528		509
Total property and equipment	33,293		32,593
Less: accumulated depreciation, depletion and amortization	(8,978)		(8,278)
Property and equipment held for sale, net	—		40
Total property and equipment, net	24,315		24,355
Long-term derivative assets	127		47
Deferred income tax assets	—		168
Other long-term assets	692		801
Total assets	$	29,521	$	28,287

Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	881	$	753
Current maturities of long-term debt, net	875		—
Accrued interest	59		100
Derivative liabilities	—		3
Other current liabilities	2,135		2,045
Total current liabilities	3,950		2,901
Long-term debt, net	4,133		5,009
Long-term derivative liabilities	—		1
Asset retirement obligations, net of current portion	703		688
Long-term contract liabilities	911		975
Other long-term liabilities	278		135
Total liabilities	9,975		9,709
Contingencies and commitments (Note 5)
Stockholders' equity:
Common stock, $0.01 par value, 450,000,000 shares authorized: 240,085,572 and 239,249,874 shares issued	2		2
Additional paid-in capital	13,759		13,746
Retained earnings	5,785		4,830
Total stockholders' equity	19,546		18,578
Total liabilities and stockholders' equity	$	29,521	$	28,287

The accompanying notes are an integral part of these condensed consolidated financial statements.

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EXPAND ENERGY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	Three Months Ended March 31,
($ in millions, except per share data)	2026		2025
Revenues and other:
Natural gas, oil and NGL	$	3,315	$	2,300
Marketing	1,212		910
Losses on derivatives	(129)		(1,014)
Losses on sales of assets	(1)		—
Total revenues and other	4,397		2,196
Operating expenses:
Production	185		147
Gathering, processing and transportation	690		563
Severance and ad valorem taxes	60		48
Exploration	14		7
Marketing	1,121		919
General and administrative	63		47
Separation and other termination costs	9		—
Depreciation, depletion and amortization	711		711

Other operating expense, net	13		22
Total operating expenses	2,866		2,464
Income (loss) from operations	1,531		(268)
Other income (expense):
Interest expense	(59)		(59)

Other income, net	17		8
Total other income (expense)	(42)		(51)
Income (loss) before income taxes	1,489		(319)
Income tax expense (benefit)	330		(70)
Net income (loss)	$	1,159	$	(249)


Earnings (loss) per common share:
Basic	$	4.83	$	(1.06)
Diluted	$	4.81	$	(1.06)
Weighted average common shares outstanding (in thousands):
Basic	239,900		234,434
Diluted	240,759		234,434

The accompanying notes are an integral part of these condensed consolidated financial statements.

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EXPAND ENERGY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Three Months Ended March 31,
($ in millions)	2026		2025
Cash flows from operating activities:
Net income (loss)	$	1,159	$	(249)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	711		711
Deferred income tax expense (benefit)	319		(37)
Derivative losses, net	129		1,014
Cash payments on derivative settlements, net	(386)		(45)
Share-based compensation	10		9
Losses on sales of assets	1		—
Contract amortization	(30)		(52)


Other	35		(4)
Changes in assets and liabilities	454		(251)
Net cash provided by operating activities	2,402		1,096
Cash flows from investing activities:
Capital expenditures	(707)		(563)
Property acquisitions	(4)		—
Receipts of deferred consideration	60		60
Contributions to investments	(1)		(4)
Distributions from investments	10		—
Proceeds from divestitures of property and equipment	41		—
Net cash used in investing activities	(601)		(507)
Cash flows from financing activities:
Proceeds from credit facility	—		725
Payments on credit facility	—		(725)



Proceeds from warrant exercise	15		21

Cash paid to repurchase and retire common stock	(66)		—
Cash paid to purchase debt	—		(436)
Cash paid for common stock dividends	(141)		(142)

Net cash used in financing activities	(192)		(557)
Net increase in cash, cash equivalents and restricted cash	1,609		32
Cash, cash equivalents and restricted cash, beginning of period	696		395
Cash, cash equivalents and restricted cash, end of period	$	2,305	$	427

Cash and cash equivalents	$	2,220	$	349
Restricted cash	85		78
Total cash, cash equivalents and restricted cash	$	2,305	$	427

The accompanying notes are an integral part of these condensed consolidated financial statements.

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EXPAND ENERGY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)


	Common Stock
($ in millions)	Shares	Amount		Additional Paid-in Capital		Retained Earnings		Total Stockholders' Equity
Balance as of December 31, 2024	231,769,886	$	2	$	13,687	$	3,876	$	17,565
Share-based compensation	386,025	—		(8)		—		(8)
Issuance of common stock for warrant exercise	5,320,216	—		21		—		21
Net loss	—	—		—		(249)		(249)
Dividends on common stock	—	—		—		(138)		(138)
Balance as of March 31, 2025	237,476,127	$	2	$	13,700	$	3,489	$	17,191

Balance as of December 31, 2025	239,249,874	$	2	$	13,746	$	4,830	$	18,578
Share-based compensation	333,423	—		(2)		—		(2)
Issuance of common stock for warrant exercise	1,122,179	—		15		—		15
Issuance of reserved common stock and warrants	2,554	—		—		—		—
Repurchase and retirement of common stock	(622,458)	—		—		(66)		(66)
Net income	—	—		—		1,159		1,159
Dividends on common stock	—	—		—		(138)		(138)
Balance as of March 31, 2026	240,085,572	$	2	$	13,759	$	5,785	$	19,546

The accompanying notes are an integral part of these condensed consolidated financial statements.

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EXPAND ENERGY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)


1.			Basis of Presentation and Summary of Significant Accounting Policies

Description of Company

Expand Energy Corporation (“Expand Energy,” “we,” “our,” “us” or the “Company”) is the largest natural gas producer in the U.S., based on net daily production, and is focused on responsibly developing an abundant supply of natural gas, oil and NGL to expand energy access for all. We have operations in Louisiana, Texas, Pennsylvania, West Virginia and Ohio, with all of our operations located onshore in the United States.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of Expand Energy were prepared in accordance with GAAP and the rules and regulations of the SEC. Pursuant to such rules and regulations, certain disclosures have been condensed or omitted.

This Quarterly Report on Form 10-Q (this “Form 10-Q”) relates to our financial position as of March 31, 2026 and December 31, 2025, and our results of operations for the three months ended March 31, 2026 (“Current Quarter”), and the three months ended March 31, 2025 (“Prior Quarter”). Our annual report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K”) should be read in conjunction with this Form 10-Q. The accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments that, in the opinion of management, are necessary for a fair statement of our condensed consolidated financial statements and accompanying notes and include the accounts of our direct and indirect wholly owned subsidiaries and entities in which we have a controlling financial interest. Intercompany accounts and balances have been eliminated. For the time periods covered by this Form 10-Q, we did not have any changes or items impacting other comprehensive income.

Restricted Cash

As of March 31, 2026, we had restricted cash of $85 million. Our restricted cash represents funds restricted for payment of certain royalties pending the outcome of competing ownership claims for certain minerals, as well as for payment of certain convenience class unsecured claims.

Recently Issued Accounting Standards

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. ASU 2025-11 clarifies interim disclosure requirements and the applicability of Topic 270. Additionally, ASU 2025-11 includes a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. This ASU is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. We are evaluating the impact this ASU will have on our disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 expands disclosures about specific costs and expenses presented on the face of the income statement. This ASU is effective for annual reporting periods beginning after December 15, 2026, and for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. We are evaluating the impact this ASU will have on our disclosures.

We consider the applicability and impact of all ASUs. ASUs not listed above were evaluated and determined to either be not applicable, already adopted and disclosed or not material upon adoption.

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EXPAND ENERGY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)


2.			Natural Gas and Oil Property Transactions

Eagle Ford Divestitures

During 2023, we divested our Eagle Ford assets through three separate transactions (“the Eagle Ford divestiture transactions”). In each of these transactions, we received a portion of the purchase price upon closing, subject to customary post-closing adjustments, with the remainder of the purchase price recorded as deferred consideration and treated as a non-interest-bearing note to be paid in installments in up to the following four years following the close of the transaction. The deferred consideration is recorded at fair value with an imputed rate of interest as a Level 2 input, and approximately $97 million and $114 million of the deferred consideration is reflected within other current assets and approximately $52 million and $91 million of the deferred consideration is reflected within other long-term assets on the condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025, respectively. These installment payments are recorded as receipts of deferred consideration in our condensed consolidated statements of cash flows.


3.			Earnings Per Share

Basic earnings (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per common share is calculated in the same manner but includes the impact of potentially dilutive securities utilizing the treasury stock method. Potentially dilutive securities consists of issuable shares related to warrants, unvested restricted stock units (“RSUs”), and unvested performance share units (“PSUs”).

The reconciliations between basic and diluted earnings (loss) per share are as follows:


	Three Months Ended March 31,
	2026		2025
Numerator
Net income (loss), basic and diluted	$	1,159	$	(249)

Denominator (in thousands)
Weighted average common shares outstanding, basic	239,900		234,434
Effect of potentially dilutive securities
Warrants	462		—
Restricted stock units	397		—
Performance share units	—		—
Weighted average common shares outstanding, diluted	240,759		234,434

Earnings (loss) per common share:
Basic	$	4.83	$	(1.06)
Diluted	$	4.81	$	(1.06)

During the Current Quarter and Prior Quarter, the diluted earnings (loss) per share calculation excludes the effect of 10,837 and 308,646 reserved shares of common stock and 0 and 582,109 reserved Class C Warrants related to the settlement of General Unsecured Claims associated with the Chapter 11 Cases, as all necessary conditions had not been met for such shares to be considered dilutive shares during the Current Quarter and Prior Quarter, respectively. On February 9, 2026, the Warrants, including the Class C Warrants, expired. For additional information on the Warrants, see Note 9. Additionally, the diluted loss per share calculation during the Prior Quarter excludes the antidilutive effect of 5,634,917 Warrants, 413,816 RSUs and 154,868 PSUs.

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EXPAND ENERGY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)


4.			Debt

Our long-term debt consisted of the following as of March 31, 2026 and December 31, 2025:


	March 31, 2026				December 31, 2025
	Carrying Amount		Fair Value(a)		Carrying Amount		Fair Value(a)
Credit Facility	$	—	$	—	$	—	$	—



5.375% senior notes due 2029	638		638		638		639
5.875% senior notes due 2029	440		441		440		441
6.75% senior notes due 2029(b)	847		848		847		852
5.375% senior notes due 2030	1,200		1,211		1,200		1,218
4.75% senior notes due 2032	1,150		1,123		1,150		1,137
5.70% senior notes due 2035	750		761		750		776
Discounts on senior notes, net	(9)		—		(8)		—
Debt issuance costs	(8)		—		(8)		—
Total debt, net	$	5,008	$	5,022	$	5,009	$	5,063
Less current maturities of long-term debt, net	(875)		(848)		—		—
Total long-term debt, net	$	4,133	$	4,174	$	5,009	$	5,063

(a)The carrying value of borrowings under our Credit Facility approximates fair value as the interest rates are based on prevailing market rates; therefore, they are a Level 1 fair value measurement. For all other debt, a market approach, based upon quotes from major financial institutions, which are Level 2 inputs, is used to measure the fair value.

(b)Prior to March 31, 2026, we exercised our right to call the 6.75% Senior Notes due 2029. As this exercise was irrevocable, the carrying value of these notes was reclassified to current maturities of long-term debt, net, as of March 31, 2026.

Credit Facility. On September 30, 2025, the Company entered into an Amended and Restated Credit Agreement (the “Credit Agreement”) that, as amended, has a maturity date of September 30, 2030 (the “Credit Facility”), with the lenders and issuing banks party thereto from time to time (the “Lenders”), and JPMorgan Chase Bank, N.A., as administrative agent. The maturity date for the Credit Facility has two one-year extension options available, each subject to the Lenders’ consent. The Credit Facility provides for aggregate commitments of $3.5 billion, with incremental capacity for additional commitments in an amount up to $1.0 billion, subject to the receipt of commitments thereto and certain customary conditions. Under the Credit Facility, the sublimit available for the issuance of letters of credit is $1.0 billion and the sublimit available for swingline loans is $100 million. As of March 31, 2026, we had approximately $3.5 billion available for borrowings under the Credit Facility.

The Credit Agreement contains restrictive covenants that, subject to exceptions customary to investment-grade credit facilities, limit Expand Energy and its subsidiaries’ ability to, among other things: (i) incur priority indebtedness, (ii) enter into mergers; (iii) make or declare dividends; (iv) incur liens; (v) sell all or substantially all of their assets; and (vi) engage in certain transactions with affiliates. The Credit Agreement requires our compliance with an indebtedness to capitalization ratio, which is the ratio of the Company’s total indebtedness to the sum of total indebtedness plus stockholders’ equity (the “Debt to Capitalization Ratio”), not to exceed 65%, tested at the end of each quarter. As of March 31, 2026, we were in compliance with the Debt to Capitalization Ratio.

Borrowings under the Credit Agreement may be alternate base rate loans or term SOFR loans, at our election. Interest is payable quarterly for alternate base rate loans and at the end of the applicable interest period for term SOFR loans. Term SOFR loans bear interest at term SOFR plus an applicable rate ranging from 112.5 to 200 basis points per annum, depending on the Company’s unsecured debt ratings. Alternate base rate loans bear interest at a rate per annum equal to the greatest of: (i) the prime rate; (ii) the federal funds effective rate plus 50 basis points;

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EXPAND ENERGY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

and (iii) the term SOFR rate for a one-month interest period plus 100 basis points, plus an applicable margin ranging from 12.5 to 100 basis points per annum, depending on the Company’s unsecured debt ratings. Expand Energy also pays a commitment fee on unused commitment amounts under the Credit Facility ranging from 12.5 to 32.5 basis points per annum, depending on the Company’s unsecured debt ratings.

The Credit Facility is subject to customary events of default, remedies, and cure periods for investment-grade credit facilities of this nature.

The Company had no secured debt as of March 31, 2026.

Senior Notes Repayment

During the Prior Quarter, the $389 million aggregate principal of 4.95% Senior Notes due 2025 (the “2025 Notes”) was repaid and terminated with cash on hand and borrowings on the Company’s reserve-based credit facility entered into on December 9, 2022, which was subsequently terminated in connection with the entry into the Credit Facility. The borrowings on the prior credit facility were subsequently repaid during the Prior Quarter. Additionally, we redeemed the remaining $47 million aggregate principal of the 5.50% Senior Notes due 2026 (the “2026 Notes”) with cash on hand.

On April 15, 2026, we redeemed the $847 million aggregate principal of 6.75% Senior Notes due 2029 for approximately $875 million, which included accrued interest of $28 million. Additionally, on April 17, 2026, we redeemed the $440 million aggregate principal of 5.875% Senior Notes due 2029 for approximately $446 million, which included accrued interest of $6 million. We utilized cash on hand for the redemption of the 6.75% Senior Notes due 2029 and the 5.875% Senior Notes due 2029.


5.			Contingencies and Commitments

Contingencies

Business Operations and Litigation and Regulatory Proceedings

We are involved in, and expect to continue to be involved in, various lawsuits and disputes incidental to our business operations, including commercial disputes, personal injury claims, royalty claims, property damage claims and contract actions. We are also party to the consolidated Chapter 11 Cases pending for the Debtors in the Bankruptcy Court.

Our total accrued liability in respect of litigation and regulatory proceedings is determined on a case-by-case basis and represents an estimate of probable losses after considering, among other factors, the progress of each case or proceeding, our experience and the experience of others in similar cases or proceedings, and the opinions and views of legal counsel. Significant judgment is required in making these estimates. While it is not possible at this time to estimate the amount of any additional loss, or range of loss that is reasonably possible, based on the nature of the claims, management believes that current litigation, claims and proceedings, individually or in aggregate and after taking into account insurance, are not likely to have a material adverse impact on our financial position, results of operations or cash flows. Many of these matters are in early stages and are all subject to inherent uncertainties. Therefore, management’s view may change in the future. If an unfavorable final outcome were to occur, there exists the possibility of our final liabilities being materially different.

The majority of Chesapeake’s pre-petition legal proceedings were settled during the Chapter 11 Cases or will be resolved in connection with the claims reconciliation process before the Bankruptcy Court, together with actions seeking to collect pre-petition indebtedness or to exercise control over the property of Chesapeake’s bankruptcy estates. Any allowed claim related to such litigation will be treated in accordance with the Plan. The Plan in the Chapter 11 Cases, which became effective on February 9, 2021, provided for the treatment of claims against Chesapeake’s bankruptcy estates, including pre-petition liabilities that had not been satisfied or addressed during the Chapter 11 Cases. Many of these proceedings were in early stages as of the Petition Date, and many of them sought damages and penalties, the amount of which is indeterminate. Any legal proceeding pending against Southwestern and assumed by us in connection with the Southwestern Merger is not subject to discharge or resolution as part of the Chapter 11 Cases.

Environmental Contingencies

The nature of the natural gas and oil business carries with it certain environmental risks for us and our subsidiaries. We have implemented various policies, programs, procedures, training and audits to reduce and mitigate such environmental risks. We conduct periodic reviews, on a company-wide basis, to assess changes in our environmental risk profile. Environmental reserves are established for environmental liabilities for which economic losses are probable and reasonably estimable. We manage our exposure to environmental liabilities in acquisitions by using an evaluation process that seeks to identify pre-existing contamination or compliance concerns and address the potential liability. Depending on the extent of an identified environmental concern, we may, among other things, exclude a property from the transaction, require the seller to remediate the property to our satisfaction in an acquisition or agree to assume liability for the remediation of the property.

Commitments

Gathering, Processing and Transportation Agreements

We have contractual commitments with midstream service companies and pipeline carriers for future gathering, processing and transportation of natural gas, oil and NGL to move certain of our production to market. Working interest owners and royalty interest owners, where appropriate, will be responsible for their proportionate share of these costs. Generally, commitments related to gathering, processing and transportation agreements are not recorded as obligations in the accompanying condensed consolidated balance sheets, however, as part of the Southwestern Merger, we assumed gathering, processing and transportation contracts, certain of which were deemed to be above or below current market rates. We recognized assets and liabilities for the difference in the contractual and market rates of these contracts, as of the date of the Southwestern Merger.

The aggregate undiscounted commitments under our gathering, processing and transportation agreements, excluding any reimbursement from working interest and royalty interest owners, credits for third-party volumes or future costs under cost-of-service agreements, are presented below:


	March 31, 2026
Remainder of 2026	$	1,124
2027	1,436
2028	1,294
2029	974
2030	898
Thereafter	3,451
Total	$	9,177

In addition, we have long-term agreements for certain natural gas gathering and related services within specified acreage dedication areas in exchange for cost-of-service based fees redetermined annually, or tiered fees based on volumes delivered relative to scheduled volumes. Future gathering fees may vary with the applicable agreement.

Other Commitments

As part of our normal course of business, we enter into various agreements providing, or otherwise arranging for, financial or performance assurances to third parties on behalf of our wholly owned guarantor subsidiaries. These agreements may include future payment obligations or commitments regarding operational performance that effectively guarantee our subsidiaries’ future performance.

In connection with acquisitions and divestitures, our purchase and sale agreements generally provide indemnification to the counterparty for liabilities incurred as a result of a breach of a representation or warranty by the indemnifying party and/or other specified matters. These indemnifications generally have a discrete term and are intended to protect the parties against risks that are difficult to predict or cannot be quantified at the time of entering into or consummating a particular transaction. For divestitures of natural gas and oil properties, our purchase and sale agreements may require the return of a portion of the proceeds we receive as a result of uncured title or environmental defects.

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EXPAND ENERGY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

While executing our strategic priorities, we have incurred certain cash charges, including contract termination charges, financing extinguishment costs and charges for unused natural gas transportation and gathering capacity.


6.			Other Current Liabilities

Other current liabilities as of March 31, 2026 and December 31, 2025 are detailed below:


	March 31, 2026		December 31, 2025
Revenues and royalties due to others	$	1,156	$	972
Accrued drilling and production costs	332		350
Contract liabilities	251		253
Accrued compensation and benefits	55		107
Taxes payable	146		157
Operating leases	51		51
Joint interest prepayments received	11		11

Other	133		144
Total other current liabilities	$	2,135	$	2,045


7.			Revenue

The following tables show revenue disaggregated by operating area and product type:


	Three Months Ended March 31, 2026
	Natural Gas		Oil		NGL		Total
Haynesville	$	1,245	$	—	$	—	$	1,245
Northeast Appalachia	1,428		—		—		1,428
Southwest Appalachia	389		87		166		642
Natural gas, oil and NGL revenue	$	3,062	$	87	$	166	$	3,315

Marketing revenue	$	1,134	$	38	$	40	$	1,212


	Three Months Ended March 31, 2025
	Natural Gas		Oil		NGL		Total
Haynesville	$	821	$	—	$	—	$	821
Northeast Appalachia	900		—		—		900
Southwest Appalachia	294		78		207		579
Natural gas, oil and NGL revenue	$	2,015	$	78	$	207	$	2,300

Marketing revenue	$	837	$	34	$	39	$	910

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

Accounts Receivable

Our accounts receivable are primarily from purchasers of natural gas, oil and NGL and from exploration and production companies that own interests in properties we operate. This industry concentration could affect our overall exposure to credit risk, either positively or negatively, because our purchasers and joint working interest owners may be similarly affected by changes in economic, industry or other conditions. We monitor the creditworthiness of all our counterparties, and we generally require letters of credit or parent guarantees for receivables from parties deemed to have sub-standard credit, unless the credit risk can otherwise be mitigated. We utilize an allowance method in accounting for bad debt based on historical trends in addition to specifically identifying receivables that we believe may be uncollectible.

Accounts receivable as of March 31, 2026 and December 31, 2025 are detailed below:


	March 31, 2026		December 31, 2025
Natural gas, oil and NGL sales	$	957	$	1,363
Joint interest	255		232
Other	92		18
Allowance for doubtful accounts	(14)		(14)
Total accounts receivable, net	$	1,290	$	1,599


8.			Income Taxes

The table below presents a comparison of the Current Quarter and Prior Quarter’s income tax expense (benefit) and actual year-to-date effective tax rates.


	Three Months Ended March 31,
		2026	2025
Income (loss) before income taxes			$	1,489			$	(319)

Current tax expense (benefit)			11		0.7	%	(33)		10.3	%
Deferred tax expense (benefit)			319		21.4	%	(37)		11.6	%
Income tax expense (benefit)			$	330	22.1	%	$	(70)	21.9	%

An estimated annual effective tax rate (“EAETR”) is used in recording our interim year-to-date income tax provision. The EAETR is determined based on analysis of year-to-date and projected financial results of our operations. Our EAETR during the Current Quarter was 22.3%, compared to 21.8% in the Prior Quarter. The actual year-to-date effective tax rate and EAETR can differ as a result of certain discrete items, which are recorded in the period. Common examples of such items include, but are not limited to, certain equity-based compensation, true-ups resulting from differences between tax returns filed and estimated accruals, and tax effects of enacted laws.

As a result of projecting federal and state income taxes, a portion of our EAETR represents the estimated provision for current taxes. Due to the book income in the Current Quarter, a current tax expense of $11 million was recorded. Due to the book loss in the Prior Quarter, a current tax benefit of $33 million was recorded.

As of December 31, 2025, we were in a net deferred tax asset position and we anticipate being in a net deferred tax liability position as of December 31, 2026. Based on all available positive and negative evidence, including projections of future taxable income, we believe it is more likely than not that some of our deferred tax assets will not be realized. As such, a partial valuation allowance was recorded against our net deferred tax asset position for federal and state purposes as of March 31, 2026 and December 31, 2025.

On July 4, 2025, the current Presidential Administration signed into law the One Big Beautiful Bill Act (the “OBBBA”). This bill restores 100% bonus depreciation for property acquired and placed into service after January 19, 2025, restores the immediate expensing of research expenditures, and provides for parity between the treatment of intangible drilling costs and depreciation for purposes of the CAMT. The enactment of the OBBBA and

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its provisions contributed to a reduction in the Company’s expected current tax expense with an offsetting increase to the Company’s expected deferred tax expense.


9.			Equity

Dividends

During the Current Quarter and Prior Quarter we made dividend payments of $138 million ($0.575 per share) and $138 million ($0.575 per share), respectively.

On April 28, 2026, we declared a base quarterly dividend payable of $0.575 per share, which will be paid on June 4, 2026 to stockholders of record at the close of business on May 14, 2026.

Share Repurchases

On October 22, 2024, our Board of Directors authorized repurchases of up to $1.0 billion, in aggregate, of the Company’s common stock and/or warrants under a share repurchase program. During the Current Quarter, we repurchased 0.6 million shares for an aggregate price of $66 million. We did not make any share repurchases during the Prior Quarter. The shares of common stock repurchased during the Current Quarter were retired and recorded as a reduction to common stock and retained earnings.

Subsequent to the Current Quarter, we have repurchased approximately 0.9 million shares for an aggregate price of $84 million through April 24, 2026.

Warrants

As of December 31, 2025, there were 15,705 Class A Warrants, 48,801 Class B Warrants and 1,244,008 Class C Warrants outstanding. On February 9, 2026, all of the outstanding Warrants that had not been previously exercised expired. As a result of these Warrant exercises, we issued 1,122,179 common shares and no longer have any outstanding Warrants.


10.			Share-Based Compensation

Our long-term incentive plan, as amended and adopted by our Board of Directors (the “LTIP”), provides for the grant of RSUs, restricted stock awards, stock options, stock appreciation rights, performance awards and other stock awards to the Company’s employees and non-employee directors and has a share reserve equal to 6,800,000 shares of common stock.

Restricted Stock Units. During the Current Quarter, we granted RSUs to employees and non-employee directors under the LTIP, which will vest over a three-year period and one-year period, respectively. The fair value of RSUs is based on the closing sales price of our common stock on the date of grant, and compensation expense is recognized ratably over the requisite service period. A summary of the changes in unvested RSUs is presented below:


	Unvested Restricted Stock Units	Weighted Average Grant Date Fair Value Per Share
	(in thousands)
Unvested as of December 31, 2025	957	$	94.61
Granted	520	$	106.90
Vested	(369)	$	88.23
Forfeited	(44)	$	101.76
Unvested as of March 31, 2026	1,064	$	102.54

The aggregate intrinsic value of RSUs that vested during the Current Quarter was approximately $42 million based on the stock price at the time of vesting.

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As of March 31, 2026, there was approximately $99 million of total unrecognized compensation expense related to unvested RSUs. The expense is expected to be recognized over a weighted average period of approximately 2.4 years.

Performance Share Units. During the Current Quarter, we granted PSUs to senior management and certain employees under the LTIP, which will generally vest over a three-year period and will be settled in shares. The performance criteria include total shareholder return (“TSR”) and relative TSR (“rTSR”) and could result in a total payout between 0% - 200% of the target units. The fair value of the PSUs was measured on the grant date using a Monte Carlo simulation, and compensation expense is recognized ratably over the requisite service period because these awards depend on a combination of service and market criteria.

The following table presents the assumptions used in the valuation of the PSUs granted during the Current Quarter.


Assumption	TSR, rTSR
Risk-free interest rate	3.74	%
Volatility	28.50	%

A summary of the changes in unvested PSUs is presented below:


	Unvested Performance Share Units	Weighted Average Grant Date Fair Value Per Share
	(in thousands)
Unvested as of December 31, 2025	464	$	106.14
Granted	109	$	80.45
Vested	(132)	$	80.53
Forfeited	(34)	$	125.64
Unvested as of March 31, 2026	407	$	105.95

The aggregate intrinsic value of PSUs that vested during the Current Quarter was approximately $11 million based on the stock price at the time of vesting.

As of March 31, 2026, there was approximately $24 million of total unrecognized compensation expense related to unvested PSUs. The expense is expected to be recognized over a weighted average period of approximately 2.22 years.

RSU and PSU Compensation.

We recognized the following compensation costs, net of actual forfeitures, related to RSUs and PSUs for the periods presented:


	Three Months Ended March 31,
	2026		2025
General and administrative expenses	$	9	$	8
Natural gas and oil properties	2		1
Production expense	1		1
Separation and other termination costs	3		—
Marketing expense	—		1
Other operating expense, net	—		2
Total RSU and PSU compensation	$	15	$	13
Related income tax benefit	$	4	$	4

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11.			Derivative and Hedging Activities

We use derivative instruments to reduce our exposure to fluctuations in future commodity prices and to protect our expected operating cash flow against significant market movements or volatility. These commodity contract derivative financial instruments primarily includes financial price instruments, collars, call options and basis protection instruments. All of our commodity contract derivative instruments are net settled based on the difference between the fixed-price payment and the floating-price payment, resulting in a net amount due to or from the counterparty. Additionally, we enter into exchange traded derivative instruments with brokers or the clearing houses of certain exchanges. We have elected not to designate any of our derivative instruments for hedge accounting treatment.

The estimated fair values of our natural gas, oil and NGL derivative instrument assets (liabilities) as of March 31, 2026 and December 31, 2025 are provided below:


	March 31, 2026			December 31, 2025
	Notional Volume(a)	Fair Value		Notional Volume(a)	Fair Value
Natural gas (Bcf):
Fixed-price instruments	869	$	264	756	$	128
Two-way collars	858	252		1,143	212
Three-way collars	680	95		175	32

Call options (sold)	55	(4)		73	(1)
Basis protection instruments	261	(31)		337	(66)
Total natural gas	2,723	576		2,484	305
Oil (MMBbls):
Two-way collars	2	$	(2)	—	$	—
Three-way collars	—	—		—	2
Total oil	2	(2)		—	2
NGLs (MMBbls):
Fixed-price instruments	4	$	(18)	—	$	—
Total NGL	4	(18)		—	—


Total estimated fair value		$	556		$	307

(a)Notional volumes are presented net of short and long positions.

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The following table presents the fair value and location of each classification of derivative instrument included in the condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025 on a gross basis and after same-counterparty netting:


	Gross Fair Value(a)		Amounts Netted in the Condensed Consolidated Balance Sheets		Net Fair Value Presented in the Condensed Consolidated Balance Sheets

As of March 31, 2026
Commodity Contracts:
Short-term derivative asset	$	661	$	(232)	$	429
Long-term derivative asset	142		(15)		127
Short-term derivative liability	(232)		232		—
Long-term derivative liability	(15)		15		—


Total derivatives	$	556	$	—	$	556

As of December 31, 2025
Commodity Contracts:
Short-term derivative asset	$	340	$	(76)	$	264
Long-term derivative asset	66		(19)		47
Short-term derivative liability	(79)		76		(3)
Long-term derivative liability	(20)		19		(1)


Total derivatives	$	307	$	—	$	307

(a)These financial assets (liabilities) are measured at fair value on a recurring basis utilizing significant other observable inputs; see further discussion on fair value measurements below.

Fair Value

The fair value of our commodity derivatives is based on third-party pricing models, which utilize inputs that are either readily available in the public market, such as natural gas, oil and NGL forward curves and discount rates, or can be corroborated from active markets or broker quotes, and, as such, are classified as Level 2. These values are compared to the values given by our counterparties for reasonableness. Derivatives are also subject to the risk that either party to a contract will be unable to meet its obligations. We factor non-performance risk into the valuation of our derivatives using current published credit default swap rates. To date, this has not had a material impact on the values of our derivatives.

Credit Risk Considerations

Our derivative instruments expose us to our counterparties’ credit risk. To mitigate this risk, we only enter into commodity contracts derivatives with counterparties that are highly rated or deemed by us to have acceptable credit strength and deemed by management to be competent and competitive market-makers, and we attempt to limit our exposure to non-performance by any single counterparty. As of March 31, 2026, our commodity contracts derivative instruments were spread among 21 counterparties.

Hedging Arrangements

Certain of our hedging arrangements are with counterparties that are also Lenders (or affiliates of Lenders) under our Credit Facility. We do not expect to post cash or letters of credit to secure our obligations under these hedging arrangements while we have our investment grade ratings. The obligations under these contracts must be secured by cash or letters of credit to the extent that any mark-to-market amounts exceed defined thresholds. As of March 31, 2026, we did not have any cash or letters of credit posted as collateral for our commodity derivatives. We maintain accounts with brokers or the clearing houses of certain exchanges to facilitate financial derivative transactions. Based on the value of the positions in these accounts and associated margin requirements, we may

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be required to deposit cash into these accounts. As of March 31, 2026, the cash held within these broker margin accounts was $17 million, and is included within other current assets within our condensed consolidated balance sheets.


12.			Investments

Momentum Sustainable Ventures LLC. During the fourth quarter of 2022, the Company entered into an agreement with Momentum Sustainable Ventures LLC (“Momentum”) to build a new natural gas gathering pipeline and carbon capture project, which gathers and treats natural gas produced in the Haynesville Shale for delivery to Gulf Coast markets, including LNG export, the New Generation Gas Gathering LLC (“NG3”) operated pipeline (the “NG3 pipeline”). The NG3 pipeline was placed in service and began gathering operations on October 1, 2025. Under a CO2 services agreement with ExxonMobil Low Carbon Solutions Onshore Storage, LLC (“Exxon”), NG3 began delivering CO2 to Exxon for capture and sequestration in February 2026. We have a 35% interest in the joint venture entity and classify our investment with Momentum in the NG3 pipeline as a related party.

We have accounted for this investment as an equity method investment, and its carrying value, which is reflected within other long-term assets on the condensed consolidated balance sheets, was $301 million and $313 million as of March 31, 2026 and December 31, 2025, respectively. We recognize our proportionate share of income (loss) related to our investment with Momentum in other income, net within our condensed consolidated statements of operations. Our proportionate share of income (loss) related to our investment with Momentum is recognized on a three-month lag. During the Current Quarter and Prior Quarter, our proportionate share of income (loss) related to our investment in the NG3 pipeline did not have a material impact to our financial statements. We periodically review our investment with Momentum to determine if a loss in value, which is other than a temporary decline, has occurred. If an other than temporary decline has occurred, we recognize an impairment on our investment. Through March 31, 2026, we have not recognized any impairments related to our investment with Momentum.

The NG3 pipeline provides to us certain gathering, processing and transportation services. We have a gathering agreement in which approximately 900 MMcf per day, on average, of natural gas are to be gathered and processed by the NG3 pipeline over the course of the next 12 years. During the Current Quarter, approximately $18 million of our gathering, processing and transportation expenses were related to services provided by the NG3 pipeline, and is reflected within our consolidated statements of operations. Additionally, approximately $13 million and $12 million of our accounts payable balance as of March 31, 2026 and December 31, 2025, respectively, was related to gathering, processing and transportation services rendered to us by the NG3 pipeline.

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13.			Supplemental Cash Flow Information

Supplemental disclosures to the condensed consolidated statements of cash flows are presented below.


	Three Months Ended March 31,
	2026		2025
Changes in assets and liabilities
Accounts receivable	$	307	$	(135)
Accounts payable	104		(96)
Other current assets	(25)		(25)
Other current liabilities	68		5
Total	$	454	$	(251)


Supplemental cash flow information:
Interest paid, net of capitalized interest	$	100	$	91



Income taxes paid (refunds received), net	$	3	$	—

Supplemental disclosure of significant non-cash investing and financing activities:
Change in accrued drilling and completion costs	$	(16)	$	126
Operating lease obligations recognized	$	6	$	19


14.			Segment Information

Operating segments are defined as components of an enterprise that engage in activities from which it may earn revenues and incur expenses for which separate operational financial information is available and is regularly evaluated by the chief operating decision maker (“CODM”), who is our Chief Executive Officer, for the purpose of allocating an enterprise’s resources and assessing its operating performance. Our revenues are derived from the production, marketing and sale of natural gas, oil and NGL. Additional information on our revenues, including the disaggregation of our revenues, is found in Note 7. As of March 31, 2026, we considered each of our operating areas as operating segments, however, we have aggregated those operating segments into one reportable segment due to the similar nature of the exploration and production business across Expand Energy and its consolidated subsidiaries and the fact that our marketing activities are ancillary to our operations.

Our CODM uses consolidated net income (loss), for purposes of allocating resources and in assessing Expand Energy’s operating performance, which also includes analyzing results to forecasted information. Additionally, our CODM is regularly provided information on production expense, gathering, processing and transportation expense, severance and ad valorem taxes and general and administrative expense, which are our significant segment expenses. Other segment items primarily consist of depreciation, depletion and amortization, marketing expense, interest expense and income tax expense (benefit). Our significant segment expenses and other segment items are derived from, and can be found within the condensed consolidated statements of operations.

The measure of segment assets is total assets as reported on our condensed consolidated balance sheets, and as of March 31, 2026 and as of December 31, 2025 our total assets were $29,521 million and $28,287 million, respectively. Additionally, in analyzing company performance, our CODM reviews capital expenditures. During the Current Quarter and Prior Quarter, our capital expenditures were $716 million and $662 million, respectively. During the Current Quarter and Prior Quarter we did not make any contributions to equity method investments. Our interest revenue during the Current Quarter and Prior Quarter was $8 million and $2 million, respectively.

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