Expand Energy Corp. (NASDAQ:EXE)

The analysis of the financial data reveals notable trends in both current assets and adjusted current assets over the four-year period from 2021 to 2024.

Current Assets

The current assets increased significantly from US$2,103 million in 2021 to a peak of US$2,698 million in 2022. This growth represents a strong upward trend in the company's short-term asset base during that period. However, in 2023, current assets declined to US$2,609 million and continued to decrease more sharply in 2024 to US$1,997 million. The reduction in current assets over the two latter years signals a contraction in liquidity or a potential reduction in resources available for operational needs and obligations.

Adjusted Current Assets

The adjusted current assets displayed a pattern closely mirroring that of current assets. Beginning at US$2,106 million in 2021, these assets also rose to US$2,701 million in 2022. Subsequently, a decline occurred with adjusted current assets dropping to US$2,610 million in 2023 and further to US$2,008 million in 2024. The alignment between the adjusted and unadjusted figures suggests consistency in asset adjustment processes and reinforces the observed decreasing trend in asset availability after 2022.

Overall, the company experienced an expansion in its current assets from 2021 to 2022, followed by a steady decline through to 2024. This pattern may reflect changing operational dynamics, investment strategies, or external market conditions impacting asset levels. The decline in current and adjusted current assets in the most recent years could warrant further investigation into liquidity management and asset utilization efficiency.

The annual financial data indicates significant fluctuations in total assets and adjusted total assets over the four-year period.

Total Assets

Total assets exhibited a notable increase from US$ 11,009 million in 2021 to US$ 15,468 million in 2022, representing a growth of approximately 40.5%. However, this upward trend was followed by a decline in 2023 to US$ 14,376 million, a reduction of around 7% from the previous year. In 2024, total assets surged dramatically to US$ 27,894 million, nearly doubling the 2023 figure and marking a 94% increase. This pronounced volatility reflects significant asset expansion initiatives or revaluation activities within the final year.

Adjusted Total Assets

Adjusted total assets showed a somewhat similar pattern but generally remained slightly below total assets values, suggesting the presence of adjustments such as depreciation, impairments, or reclassifications. Starting at US$ 11,012 million in 2021, adjusted total assets rose to US$ 14,120 million in 2022, reflecting a 28% increase. Similar to total assets, there was a decline in 2023 to US$ 13,444 million, approximately 4.8% lower than the prior year. The adjusted total assets then experienced a significant jump in 2024 to US$ 27,316 million, an increase of 103% compared to 2023. This acceleration closely mirrors the total assets trend, albeit with a consistent slightly lower valuation, indicating relatively stable adjustment factors throughout the period.

Overall, the asset base exhibited substantial growth over the four years, particularly in the final year. The volatility observed in 2023, with declines in both total and adjusted assets, suggests a possible period of consolidation, asset disposals, or valuation corrections before a major expansion or revaluation in 2024. The consistent gap between total and adjusted assets implies ongoing adjustments that impact asset valuation but do not drastically change the overall growth trajectory.

Total Liabilities

The total liabilities demonstrate a fluctuating pattern over the observed periods. From December 31, 2021, to December 31, 2022, total liabilities increased from 5,338 million US dollars to 6,344 million US dollars, reflecting a growth phase. Subsequently, there was a significant reduction to 3,647 million US dollars by December 31, 2023, indicating a possible deleveraging or repayment activity. However, this trend reversed sharply by the end of 2024, with liabilities rising dramatically to 10,329 million US dollars, which suggests new borrowing or financial obligations incurred within that year.

Adjusted Total Liabilities

The adjusted total liabilities mirror the movements of the total liabilities very closely, showing identical numerical values for each period reported. This suggests that adjustments applied to total liabilities did not materially alter the reported figures, indicating consistency between reported and adjusted values for liabilities across all periods.

Summary

Overall, the liability profile over the four years is marked by volatility, with an initial increase, a substantial decrease, and then a significant rise in the final year observed. This pattern may imply shifting financial strategies, possibly reflecting changing capital structure decisions, refinancing activities, or responses to market conditions. The congruence between total and adjusted liabilities points to stable accounting treatment of liabilities throughout the period.

The financial data over the period from December 31, 2021, to December 31, 2024, reveals significant growth in both stockholders’ equity and adjusted stockholders’ equity for the company.

Stockholders’ equity

There is a noticeable upward trend in stockholders’ equity, increasing from 5,671 million US dollars at the end of 2021 to 17,565 million US dollars by the end of 2024. This represents more than a threefold increase over the four-year period, indicating an expansion in the company’s net worth or retained earnings, possibly driven by profitability, capital injections, or asset revaluation.

Adjusted stockholders’ equity

Adjusted stockholders’ equity also exhibits a strong growth trajectory, although it consistently remains slightly lower than the reported stockholders’ equity figures. It rose from 5,674 million US dollars in 2021 to 16,997 million US dollars in 2024. This measure shows a significant increase primarily between 2023 and 2024, following more moderate gains in the earlier periods. The divergence between the adjusted and reported values suggests adjustments that may reflect more conservative accounting treatments or exclusions of certain equity components.

Overall, the data indicates robust financial strengthening over the timeframe, with accelerating equity growth in the final year. The large increases in both reported and adjusted equity imply enhanced shareholder value and potential financial stability improvements, which could support future investment or operational expansion activities.

Total Reported Debt

The total reported debt exhibited fluctuation over the analyzed period. Initially, it increased from 2278 million US dollars at the end of 2021 to 3093 million in 2022, followed by a decline to 2028 million in 2023. However, a significant rise occurred in 2024, reaching 5680 million US dollars, indicating a notable increase in leverage or borrowing toward the end of the period.

Stockholders’ Equity

Stockholders’ equity demonstrated steady growth throughout the years. It rose from 5671 million US dollars in 2021 to 9124 million in 2022, further increasing to 10729 million in 2023, and reaching 17565 million by 2024. This consistent upward trend reflects accumulation of retained earnings, additional capital infusion, or asset revaluations increasing shareholder value.

Total Reported Capital

Total reported capital, representing the sum of debt and equity, showed an overall positive trend. It increased from 7949 million US dollars in 2021 to 12217 million in 2022, with a moderate rise to 12757 million in 2023, followed by a sharp escalation to 23245 million in 2024. The substantial jump in 2024 aligns closely with the surge in reported debt and equity, signifying growth in the company’s total capital base.

Adjusted Total Debt

The adjusted total debt mirrored the pattern of total reported debt, starting at 2316 million US dollars in 2021, rising to 3212 million in 2022, decreasing to 2127 million in 2023, and then spiking to 5825 million in 2024. This suggests that after adjusting for potential accounting or valuation differences, the leverage pattern remains consistent with the reported figures, with marked leverage expansion in the last year.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity increased from 5674 million US dollars in 2021 to 7776 million in 2022, then to 9797 million in 2023, and a more pronounced growth to 16997 million in 2024. The adjusted equity figures are lower than the reported equity for 2022 and 2023 but converge closer by 2024, indicating adjustments in valuation or recognition criteria that stabilize over time.

Adjusted Total Capital

Adjusted total capital, combining adjusted debt and equity, showed growth from 7990 million US dollars in 2021 to 10988 million in 2022, a further increase to 11924 million in 2023, and a sharp rise to 22822 million in 2024. This trajectory reflects the overall expansion in the company's adjusted financial base, supporting observations of increased financing activity reflected by both debt and equity components.

The financial data reveals a clear downward trend in the profitability of the company over the four-year period ending December 31, 2024. Both the reported net income and the adjusted net income exhibit significant decreases year over year.

Net income (loss)

The net income starts at $6,328 million in 2021 and declines to $4,936 million in 2022, representing a reduction of approximately 22%. This downward trajectory continues sharply into 2023 with income dropping to $2,419 million, which is less than half of the 2022 figure. By 2024, the company records a net loss of $714 million, marking a substantial shift from profitability to loss.

Adjusted net income (loss)

Adjusted net income follows a comparable trend, starting at $6,198 million in 2021 and decreasing significantly to $3,604 million in 2022, which is a reduction of about 42%. In 2023, it slightly recovers to $2,845 million but remains considerably lower than earlier levels. Similar to the net income, adjusted net income shows a negative figure of $827 million in 2024, reinforcing the trend towards worsening profitability.

Overall, both net income metrics indicate a consistent and steep decline. The transition from robust profits in 2021 to losses in 2024 suggests underlying operational, market, or financial challenges that have increasingly impacted earnings. The adjusted net income figures, meant to exclude non-recurring or non-operational items, mirror this decline, confirming that the negative trend is not due solely to one-time events. This pattern highlights a need for a strategic reassessment to address the factors leading to this erosion of profitability.