Expand Energy Corp · Q2 2021 earnings

Briefing

Reported strong results with improved guidance outlook and launched a variable return program.

Chesapeake Energy Corporation reported strong second quarter results, with a net loss of $439 million but an adjusted net income of $181 million. The company generated $394 million in operating cash flow and $292 million in free cash flow. They also announced a variable return program to deliver 50% of free cash flow to shareholders quarterly and increased adjusted EBITDAX guidance for the year.

• Net cash provided by operating activities was $394 million, resulting in an unrestricted cash balance of $612 million.
• Net loss totaled $439 million, or $4.48 per diluted share; adjusted net income of $181 million, or $1.64 per diluted share.
• Adjusted EBITDAX of $429 million; free cash flow of $292 million; net debt at June 30 to 2021E adjusted EBITDAX ratio of 0.3x.
• Initiating variable return program to deliver 50% of free cash flow to shareholders on a quarterly basis, payable in the 2022 first quarter.

Headline financials

Revenue & EPS history

Chesapeake increased its expected 2021 adjusted EBITDAX range to approximately $1.8 to $1.9 billion, up 16% from $1.55 to $1.65 billion previously. In addition, the company increased its total annual production, affirmed its commitment to disciplined spending with no change to its previous capital program and reduced its annual G&A expense guidance by approximately $25 million, or 15% (using midpoints).