Expand Energy CorporationEXE reported third-quarter 2026 adjusted earnings of $1.46 per share, beating the Zacks Consensus Estimate of $1.28 by 14.1%. The bottom line rose 50.5% from 97 cents a year earlier, supported by higher production and stronger oil and natural gas liquids (NGL) prices.
Natural gas, oil and NGL revenues totaled $1.88 billion, up 1.7% year over year but 8.7% below the consensus mark of $2.06 billion. Average daily production increased 2.8% to 7,538 million cubic feet of gas equivalent (MMcfe), with natural gas accounting for 92% of output.
Expand Energy Corporation Price, Consensus and EPS Surprise
Expand Energy Corporation price-consensus-eps-surprise-chart | Expand Energy Corporation Quote
EXE's Production Benefits From New Wells
Natural gas volumes increased 2.9% to 6,916 million cubic feet per day (MMcf/d) from 6,721 MMcf/d in the year-ago quarter. Southwest Appalachia production climbed to 1,767 MMcfe/d from 1,571 MMcfe/d, while Northeast Appalachia delivered 2,593 MMcfe/d compared with 2,556 MMcfe/d. Haynesville production eased to 3,178 MMcfe/d from 3,206 MMcfe/d.
Expand Energy operated an average of 11 rigs, drilled 46 wells and brought 59 wells online during the quarter. Oil output held steady at 17,000 barrels per day, while NGL production increased to 87,000 barrels per day from 85,000. Weaker pricing within Appalachia prompted production curtailments, reflecting the company's willingness to respond to regional gas markets.
Expand Energy's Realizations Reflect Liquids Strength
The average realized natural gas price, excluding derivatives, declined 5.4% to $2.44 per thousand cubic feet (Mcf) from $2.58 a year earlier. In contrast, oil realizations jumped 44% to $77.05 per barrel from $53.50, helping offset pressure from weaker natural gas pricing.
The average NGL sales price rose 21.3% to $25.95 per barrel from $21.40. Hedge protection also supported results, with realized hedging gains reaching $311 million and improving realized pricing by $0.46 per Mcfe. Including derivatives, the average realized natural gas price improved to $2.94 per Mcf from $2.81.
EXE's Revenue Mix and Operating Costs
Natural gas sales fell to $1.55 billion from $1.60 billion, while oil revenues increased to $120 million from $86 million and NGL revenues rose to $208 million from $167 million. Marketing revenues climbed to $927 million from $666 million, supported by greater activity following the Twin Eagle acquisition and increased marketed volumes.
Total operating expenses rose 18.1% to $2.65 billion from $2.24 billion. Marketing expenses increased to $888 million from $659 million, while gathering, processing and transportation costs advanced to $678 million from $608 million. Production expenses edged down to $168 million from $169 million. Operating income declined to $640 million from $725 million, while adjusted EBITDAX increased 13.6% to $1.23 billion.
Expand Energy's Twin Eagle Integration Gains Traction
The company completed its acquisition of Twin Eagle on Sept. 16, adding commercial relationships and a broader natural gas marketing platform. Marketing adjusted EBITDA reached $35 million, compared with $7 million in the corresponding year-ago period, as the acquired business began contributing to results.
Management said the integration was progressing as planned, with the two teams working together to capture customer opportunities. The company is targeting $500 million in annual marketing and commercial EBITDA by 2028, with demand from liquefied natural gas facilities, data centers and industrial customers offering potential opportunities.
EXE's Cash Flow and Shareholder Returns
Operating cash flow totaled $1.18 billion, down from $1.20 billion a year earlier. Cash capital expenditures rose to $838 million from $775 million, reducing free cash flow to $339 million from $426 million. Adjusted free cash flow was $354 million, compared with $423 million in the year-ago quarter.
As of Sept. 30, EXE held $118 million in cash and cash equivalents, with net debt of $4.66 billion and a leverage ratio of 0.8 times. The company repurchased $305 million of shares during the quarter, bringing year-to-date buybacks to approximately $900 million. Its quarterly dividend of 57.5 cents per share is payable Dec. 3 to shareholders of record Nov. 12.
Expand Energy's Fourth-Quarter and 2026 Outlook
For the fourth quarter of 2026, the Zacks Rank #3 (Hold) company expects average daily production between 7,400 and 7,600 MMcfe, with capital spending of approximately $640 million. The company anticipates roughly $80 million in marketing EBITDA during the quarter, reflecting a fuller contribution from Twin Eagle.
For full-year 2026, management forecasts average daily production of 7,450-7,550 MMcfe and capital investment of approximately $3 billion. It anticipates operating 11-12 rigs during the year, while projected production expenses range from 23 cents to 28 cents per Mcfe.
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Important Earnings at a Glance
While we have discussed EXE's third-quarter results in detail, let us take a look at three other key reports in this space.
Kinder Morgan, Inc.KMI reported third-quarter 2026 adjusted earnings of 35 cents per share, beating the Zacks Consensus Estimate of 33 cents by 6.1%. Earnings increased 20.7% from 29 cents in the year-ago quarter.
Revenues increased 9.3% year over year to $4.53 billion from $4.15 billion. Revenues surpassed the consensus estimate of $4.38 billion by 3.4%.
Strong quarterly results benefited from higher natural gas transportation and gathering volumes, alongside improved contributions from the Terminals and CO2 businesses.
As of Sept. 30, 2026, cash and cash equivalents totaled $918 million, compared with $63 million at 2025-end. Net debt stood at $32.23 billion.
Phillips 66PSX reported third-quarter 2026 adjusted earnings of $14.08 per share, up 458.7% from $2.52 a year ago. The bottom line surpassed the Zacks Consensus Estimate of $11.97 by 17.6%.
Total revenues and other income increased 47.2% to $51.51 billion from $34.98 billion a year earlier. The top line beat the consensus estimate of $33.72 billion by 52.7%.
Stronger refining margins and higher processed volumes supported the results. Refining crude capacity utilization reached 98%, while clean product yield was 86%.
As of Sept. 30, 2026, total debt stood at $18.53 billion, down from $20.57 billion at the end of June. Net debt declined to $12.68 billion at the end of the quarter. Cash and cash equivalents totaled $5.85 billion, while the net debt-to-capital ratio improved to 26%.
NOV Inc.NOV reported third-quarter 2026 earnings of 25 cents per share, beating the Zacks Consensus Estimate of 24 cents by 4.17%. The bottom line increased 127.3% from the year-ago quarter's 11 cents, supported by improved operational execution and cost efficiencies.
The oil and gas equipment and services company's revenues of $2.23 billion surpassed the Zacks Consensus Estimate of $2.2 billion by 1.2%. Revenues increased 2.3% year over year, driven by growth in Energy Products and Services. Energy Equipment's capital equipment bookings totaled $577 million, representing a book-to-bill ratio of 91%.
As of Sept. 30, 2026, NOV had cash and cash equivalents of $1.06 billion and total debt of $1.71 billion. The company also had $1.5 billion available under its revolving credit facility.
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