Expand Energy Corp · Q3 2021 earnings

Briefing

Reported third quarter 2021 results, highlighted by strong cash flow and increased guidance.

Chesapeake Energy Corporation reported a net loss of $345 million, or $3.51 per diluted share, but an adjusted net income of $269 million, or $2.38 per diluted share. The company generated $443 million in operating cash flow and $265 million in free cash flow. Increased 2021 guidance for adjusted EBITDAX and total production with no change in capital spending; increased preliminary 2022 guidance for adjusted EBITDAX significantly.

• Net cash provided by operating activities of $443 million, resulting in unrestricted cash balance of $849 million
• Net loss totaled $345 million, or $3.51 per diluted share; adjusted net income of $269 million, or $2.38 per diluted share
• Adjusted EBITDAX of $519 million; free cash flow of $265 million; net debt at September 30 to 2021E adjusted EBITDAX ratio of 0.2x
• Increased base dividend by 27%, as previously announced, to $1.75 per share annually and payable beginning in December 2021

Headline financials

Revenue & EPS history

Chesapeake increased its expected 2021 adjusted EBITDAX range to approximately $2.1 to $2.2 billion, up from $1.8 to $1.9 billion previously, and incorporating the earlier than expected closing of the Vine acquisition. Additionally, Chesapeake increased its preliminary 2022 adjusted EBITDAX outlook to $3.2 to $3.4 billion, up from $2.55 to $2.75 billion, with projected results largely based on recent commodity prices.