Expand Energy Corporation, the Spring-headquartered natural gas producer, earned $519 million in net income during the third quarter of 2026, the company reported Tuesday, Oct. 27.
The earnings release marked the first quarterly report since the company named Danny Brown president and chief executive officer, effective Oct. 26. Brown took the helm one day before the results were published; the quarter's operations ran under interim CEO Michael A. Wichterich, who returned to his role as non-executive chairman of the board.
Expand Energy (NASDAQ: EXE), the largest natural gas producer in the United States, posted $2.24 in diluted earnings per share on total revenues of $3.29 billion. Adjusted net income, a non-GAAP measure, came in at $338 million, or $1.46 per diluted share. Adjusted EBITDAX reached $1.23 billion.
Net cash from operating activities totaled $1.18 billion for the quarter. The company produced approximately 7.54 billion cubic feet equivalent per day, with natural gas making up 92% of output. Expand Energy ran an average of 11 rigs, drilled 46 wells and brought 59 wells online.
The company completed its acquisition of Twin Eagle Holdings on Sept. 16. The deal added marketing capacity that Expand Energy expects will generate $80 million in marketing EBITDA during the fourth quarter. The company's cash flow statement showed a $1.4 billion net outflow labeled as a business combination, though the agreed purchase price was not disclosed in the release.
Expand Energy repurchased $305 million of common stock during the quarter, bringing year-to-date buybacks to approximately $900 million, or 4% of shares outstanding. The company said it has $1 billion of remaining capacity under its previously authorized repurchase program.
Total debt stood at $4.6 billion at quarter-end, with a leverage ratio of 0.8 times adjusted EBITDAX.
Looking ahead, Expand Energy updated its full-year 2026 capital investment guidance to approximately $3 billion and expects to run 11 to 12 rigs. Average daily production is projected at 7.45 to 7.55 billion cubic feet equivalent per day.
The company plans to pay a quarterly base dividend of $0.575 per share on Dec. 3 to shareholders of record as of Nov. 12.
In a statement accompanying the results, Brown said Expand Energy is "uniquely positioned to monetize the volatility we see in the gas market" and pointed to the company's scale and customer access across North America. He cited disciplined capital allocation and operational excellence as priorities.
A conference call to discuss the results was scheduled for 9 a.m. EDT on Wednesday, Oct. 28.
