Expand Energy Corp. (NASDAQ:EXE)

The analysis of the property's, plant’s, and equipment’s financial data reveals several notable trends over the four-year period. The company's investment in proved natural gas and oil properties shows a substantial increase, almost tripling from 7,682 million US dollars in 2021 to 23,093 million US dollars in 2024. This suggests a strong focus on developing and expanding proven reserves.

Unproved properties exhibit more variability, rising from 1,530 million US dollars in 2021 to 2,022 million in 2022, followed by a slight decline to 1,806 million in 2023, then significantly increasing to 5,897 million in 2024. This pattern indicates an initial phase of exploration and evaluation, a temporary retraction, and a subsequent renewed commitment to potential resource development.

The natural gas and oil properties accounted for by the successful efforts method display a pattern consistent with the combined values of proved and unproved properties, increasing from 9,212 million US dollars in 2021 to 28,990 million US dollars in 2024. This confirms the expanding base of both developed and developing resource assets.

Regarding other asset categories, buildings and improvements have remained relatively stable, fluctuating slightly around the low 300 million US dollar mark. Computer equipment shows a gradual increase, from 87 million US dollars in 2021 to 110 million in 2024, reflecting moderate investments in technological resources.

New asset categories such as gathering and water systems, and machinery and equipment appear in later years with values of 78 million and 40 million US dollars respectively by 2024, indicating recent capital expenditures possibly aimed at supporting infrastructure and operational capabilities.

Land shows a decreasing trend from 37 million US dollars in 2021 to 29 million in 2024, suggesting divestitures or revaluation. The sand mine category, listed only in 2021 with a minimal value, disappears afterward, hinting at disposal or negligible ongoing investment.

Other property and equipment values remain comparatively steady, with a modest increase from 495 million US dollars in 2021 to 654 million in 2024. This may comprise miscellaneous assets supporting overall operations.

The total property and equipment, at cost, follows the general upward trend, growing markedly from 9,707 million US dollars in 2021 to 29,644 million in 2024, driven primarily by expansions in core oil and gas properties.

Accumulated depreciation, depletion, and amortization figures reflect increasing wear and consumption of assets, growing in absolute value from -908 million US dollars in 2021 to -5,362 million in 2024. The rising accumulated charges correspond with the enlargement of asset bases and ongoing usage.

Consequently, the net property and equipment shows growth overall, expanding from 8,799 million US dollars in 2021 to 24,282 million in 2024. However, the data reveals a slight decline in net value during the intermediate years, from 11,187 million in 2022 to 10,097 million in 2023, which may indicate accelerated depreciation or disposal effects before the substantial increase in 2024.

In summary, the company appears to be intensifying its investment in natural gas and oil properties, both proved and unproved, while maintaining steady support assets. The growing gross asset base combined with increased accumulated amortization aligns with the company's expanding operational capabilities and asset utilization.

Proved natural gas and oil properties

Significant increase nearly tripling from 7,682 million to 23,093 million US dollars between 2021 and 2024.

Unproved properties

Variable trend with initial increase, slight decline, then strong rise culminating at 5,897 million US dollars in 2024.

Natural gas and oil properties, successful efforts method

Consistent increase mirroring proved and unproved combined, reaching 28,990 million US dollars in 2024.

Buildings and improvements

Relatively stable around 320-330 million US dollars.

Computer equipment

Gradual increase from 87 million to 110 million US dollars over four years.

Gathering and water systems & Machinery and equipment

Recognized only in last years with emerging values suggesting recent investments.

Land

Decreasing slightly from 37 million to 29 million US dollars.

Sand mine

Present only in 2021 with minimal value, then discontinued.

Other property and equipment

Moderately increasing from 495 million to 654 million US dollars.

Property and equipment, at cost

Substantial growth in total assets from 9,707 million to 29,644 million US dollars.

Accumulated depreciation, depletion and amortization

Increasing accumulated charges aligned with asset growth, reaching -5,362 million US dollars.

Property and equipment, net

Overall growth from 8,799 million to 24,282 million US dollars, with a dip noted in the intermediate years.

Average Age Ratio Trends

The average age ratio demonstrates a fluctuating pattern over the four-year period. Starting at 9.39% as of December 31, 2021, there is a notable increase to 17.89% by the end of December 31, 2022, indicating a significant rise in the age of property, plant, and equipment.

The upward trend continues with the ratio reaching 26.73% as of December 31, 2023, suggesting further aging or slower asset turnover during this period. However, in the final year ending December 31, 2024, the ratio declines to 18.11%, reflecting a partial reversal or improvement in asset age management.

This variation may imply that the company undertook asset replacement, disposal, or investments in newer property, plant, and equipment after 2023, leading to the decrease observed in 2024. The overall trend indicates periods of aging assets followed by corrective measures to maintain a balanced asset profile.

Property and Equipment at Cost

The cost of property and equipment showed a significant upward trend over the analyzed period. It increased steadily from US$9,707 million at the end of 2021 to US$29,644 million by the end of 2024, indicating substantial capital expenditure or asset acquisitions during these years, particularly between 2023 and 2024 where the rise was notably steep.

Accumulated Depreciation, Depletion, and Amortization

This balance also rose markedly, starting at US$908 million in 2021 and reaching US$5,362 million in 2024. The growth in accumulated depreciation suggests that the company’s existing assets are aging and/or that depreciation expense has increased in line with asset additions. The increase is relatively proportional to the rise in property and equipment cost, reflecting a consistent application of depreciation policies over time.

Land

The value of land held by the company showed a slight decline from US$37 million in 2021 to US$29 million in 2024. This minor reduction contrasts with the overall increase in total property and equipment value, indicating that most asset growth is attributable to other asset categories.

Average Age Ratio

The average age ratio, expressed as a percentage, increased from 9.39% in 2021 to a peak of 26.73% in 2023 but then declined to 18.11% in 2024. The rising trend through 2023 suggests an aging asset base during this period. The subsequent decrease in 2024 implies that the company invested in newer assets or replaced older ones, effectively reducing the average age of its property and equipment relative to the prior year.

Overall Analysis

The data reflects aggressive investment in property and equipment over the years, highlighted by the nearly threefold increase in asset cost between 2021 and 2024. Despite this, accumulated depreciation rose significantly as well, indicating utilization and aging of assets. The temporary spike in average age ratio followed by a reduction signals a cycle of asset renewal. The relatively stable land values suggest limited activity in land acquisitions compared to other asset types within the property and equipment portfolio.