NYSE$EXE

Expand Energy Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong second quarter results driven by operational efficiency and strategic focus.

Chesapeake Energy Corporation reported a strong second quarter in 2023, marked by $515 million in operating cash flow, a net income of $391 million, and adjusted EBITDAX of $524 million. The company increased its base dividend and continued share repurchases, demonstrating a commitment to shareholder returns. Operational efficiency improvements and strategic agreements position Chesapeake well for future growth.

  • Net income was $391 million, or $2.73 per diluted share; adjusted net income of $92 million, or $0.64 per share.
  • Total net production reached 3,653 mmcfe per day with adjusted EBITDAX of $524 million.
  • The base dividend was increased by approximately 4.5%, resulting in a total quarterly dividend of $0.575 per common share.
  • Approximately $125 million in share repurchases were completed during the quarter, with $515 million returned YTD through dividends and repurchases.

Headline financials

Total Revenue

$1.89B

Previous: $3.52B-46.3%
EPS (adj)

$0.64

Previous: $4.87-86.9%
Produced Bcfe/d net

3.7K

No prior period
Adjusted EBITDAX

$524M

Previous: $1.27B-58.7%
Capital Expenditures

-$1.03B

Previous: -$759M-35.3%
Free Cash Flow

$377M

Previous: $1B-62.4%
Net Income

$391M

Previous: $1.24B-68.4%
Operating Income

$517M

Previous: $1.34B-61.4%
Gross Profit

$1.89B

Previous: $3.52B-46.3%
Cash & Equivalents

$903M

Previous: $17M+5211.8%
Total Assets

$14.4B

Previous: $13.9B+3.8%
Stock-Based Comp

$9M

Previous: $6M+50.0%

Revenue & EPS history

Chesapeake · Revenue · Quarterly

$1.89B

Q2 2023-46.3%vs Q2 2022
Beat estimate in 9 of 13 quarters(69%)
ActualEstimate

Revenue by segment

Chesapeake · $398M total across 1 segment · Q4 2019

  • Natural Gas, Oil and NGL
    $398M

Forward guidance

Chesapeake Energy is focused on delivering affordable, reliable, lower carbon energy with peer-leading returns to shareholders. The company's operating plan remains flexible and is prepared for further adjustments based on market conditions.

Tailwinds

  • Strong balance sheet and deep liquidity.
  • Leading rock, returns and runway of portfolio.
  • Ability to repurchase shares at a compelling valuation.
  • Growth of base dividend.
  • Focus on being LNG Ready.

Headwinds

  • Impact of inflation and commodity price volatility resulting from Russia’s invasion of Ukraine.
  • COVID-19 and related labor and supply chain constraints.
  • Effects of the current global economic environment, including impacts from higher interest rates and recent bank closures and liquidity concerns at certain financial institutions.
  • Volatility of natural gas, oil and NGL prices.
  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.3%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+4.9%

Avg return

30 days after

52%

11 / 21 earnings

Positive

+7.9%

Q1 2022

Best reaction

-6.8%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.9%+3.9%-4.1%
Q4 2025-2.4%+0.4%+4.4%
Q3 2025-6.1%+9.0%+20.7%
Q1 2025-3.3%+0.8%+8.1%
Q4 2024-4.6%-1.7%+8.3%
Q3 2024+3.9%-1.9%+15.8%
Q2 2024-2.0%-6.9%-7.5%
Q1 2024-6.8%-6.8%-3.3%
Q4 2023+6.5%+4.1%+9.6%
Q3 2023+1.5%+4.4%-6.2%
Q2 2023-2.2%+1.2%+4.6%
Q1 2023-6.3%-4.4%-7.4%
Q4 2022-0.5%+6.6%-8.7%
Q3 2022+1.5%-1.4%-0.1%
Q2 2022+1.2%+1.7%+8.4%
Q1 2022+7.9%-4.4%+11.5%
Q4 2021+6.9%+16.4%+34.6%
Q3 2021+2.7%+0.0%-7.5%
Q2 2021+5.3%+5.0%+12.0%
Q1 2021-0.2%-1.4%+12.1%
Q4 2020+2.5%+1.9%-1.8%
Q3 2020
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Q1 2020
Q4 2019
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Q1 2019
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Q4 2007
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Q2 2009
Q2 2008

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