Expand Energy Q3 Adjusted Earnings Jump 44% as Gas Output Rises

Expand Energy Corporation, the largest independent natural gas producer in the United States, reported a 44% increase in adjusted net income for the third quarter of 2026, supported by higher production and stronger marketing performance, even as reported net income declined year over year.

The company posted adjusted net income of $338 million, or $1.46 per diluted share, compared with $234 million, or $0.97 per share, in the same period last year.

Net income under generally accepted accounting principles (GAAP) declined to $519 million from $547 million a year earlier. However, total revenues and other income increased approximately 11% to $3.29 billion, while adjusted EBITDAX rose nearly 14% to $1.23 billion.

Natural gas production increased to approximately 6.92 billion cubic feet per day (Bcf/d) from 6.72 Bcf/d in the third quarter of 2025. Total production, including oil and natural gas liquids, reached 7.54 billion cubic feet equivalent per day (Bcfe/d), up from 7.33 Bcfe/d a year earlier.

Natural gas accounted for 92% of total production.

Expand Energy's operations in the Haynesville Shale and Appalachian Basin continued to underpin its production portfolio. Southwest Appalachia recorded particularly strong growth, with production increasing to 1.77 Bcfe/d from 1.57 Bcfe/d a year earlier.

The company operated an average of 11 drilling rigs during the quarter, drilled 46 wells and brought 59 wells online.

Operating cash flow reached $1.18 billion, compared with $1.20 billion a year earlier. Free cash flow declined to $339 million from $426 million as cash capital expenditures increased to $838 million.

Expand Energy completed its acquisition of Twin Eagle Holdings on September 16, marking another step in its strategy to build an integrated natural gas business with broader access to customers and markets across North America.

The company reported $150 million in marketing adjusted EBITDA for the first nine months of 2026, compared with a $5 million loss during the corresponding period last year.

For the fourth quarter, Expand Energy expects approximately $80 million in marketing adjusted EBITDA, reflecting the contribution from Twin Eagle. That compares with $35 million generated by the marketing segment in the third quarter.

The acquisition strengthens Expand Energy's position beyond upstream natural gas production, providing additional opportunities to capture value from regional gas price differences and market volatility.

For the full year, Expand Energy expects average production of approximately 7.45 million to 7.55 million Mcfe/d, equivalent to 7.45–7.55 Bcfe/d, with capital investment guidance of approximately $3 billion.