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Investing.com -- Expand Energy Corporation (NASDAQ:EXE) shares gained 2.1% after the natural gas producer reported second quarter revenue that significantly exceeded analyst expectations, despite a slight earnings miss.
The company posted adjusted earnings of $1.10 per share for the second quarter of 2025, narrowly missing the analyst consensus of $1.13. However, revenue surged to $3.69 billion, substantially outpacing the $2.57 billion estimate. The company produced approximately 7.20 Bcfe per day during the quarter, with natural gas accounting for 92% of production.
"Expand Energy was created to make a more durable and efficient business," said Nick Dell (NYSE:DELL)’Osso, Expand Energy’s President and CEO. "We are delivering more for less, outperforming every expectation set when we announced our merger, including an approximate 50% increase to run-rate synergies."
The company is reducing its full-year 2025 drilling and completion capital expenditures guidance by approximately $100 million to achieve total capital expenditures of about $2.9 billion. Expand Energy also increased its annual synergy outlook to $600 million by year-end 2026, up from previous estimates.
Additionally, the company announced approximately $425 million of incremental free cash flow in 2025, primarily driven by improved business performance, and increased its 2025 net debt paydown target to $1.0 billion from $500 million.
For the second quarter, Expand Energy will return $448 million to shareholders through a quarterly base dividend ($137 million), variable dividend ($211 million), and share repurchases ($100 million). The company plans to pay its dividends on September 4, 2025, to shareholders of record as of August 14, 2025.
Expand Energy operated an average of 11 rigs during the quarter, drilling 49 wells and turning 59 wells in line. The company expects to maintain approximately 11 rigs for the remainder of 2025 with daily production of approximately 7.1 Bcfe/d.
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