Name: Expand Energy Corp. (NASDAQ:EXE) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Expand Energy Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net income (loss)	(714)	2,419)	4,936)	6,328)
Depreciation, depletion and amortization	1,729)	1,527)	1,753)	991)
Deferred income tax expense (benefit)	(123)	428)	(1,332)	(106)
Derivative (gains) losses, net	38)	(1,728)	2,680)	1,509)
Cash receipts (payments) on derivative settlements, net	947)	354)	(3,561)	(1,159)
Share-based compensation	38)	33)	22)	12)
Gains on sales of assets	(14)	(946)	(300)	(17)
Impairments	—)	—)	—)	1)
Non-cash reorganization items, net	—)	—)	—)	(6,680)
Contract amortization	(57)	—)	—)	—)
Losses on purchases, exchanges or extinguishments of debt	1)	—)	5)	—)
Other	35)	18)	45)	95)
Accounts receivable	(168)	857)	(106)	—)
Accounts payable	(62)	(152)	49)	—)
Other current assets	3)	143)	(182)	—)
Other current liabilities	(88)	(573)	116)	—)
Changes in assets and liabilities (legacy)	—)	—)	—)	814)
Changes in assets and liabilities	(315)	275)	(123)	814)
Adjustments to reconcile net income (loss) to net cash provided by operating activities	2,279)	(39)	(811)	(4,540)
Net cash provided by operating activities	1,565)	2,380)	4,125)	1,788)
Capital expenditures	(1,557)	(1,829)	(1,823)	(735)
Receipts of deferred consideration	166)	—)	—)	—)
Business combination, net	(459)	—)	(1,967)	(194)
Contributions to investments	(75)	(231)	(18)	—)
Proceeds from divestitures of property and equipment	21)	2,533)	407)	13)
Net cash (used in) provided by investing activities	(1,904)	473)	(3,401)	(916)
Proceeds from Credit Facility	20)	1,125)	1,600)	—)
Payments on Credit Facility	(20)	(2,175)	(550)	—)
Proceeds from Exit Credit Facility	—)	—)	9,583)	30)
Payments on Exit Credit Facility	—)	—)	(9,804)	(559)
Payments on DIP Facility borrowings	—)	—)	—)	(1,179)
Proceeds from issuance of senior notes, net	747)	—)	—)	1,000)
Proceeds from issuance of common stock	—)	—)	—)	600)
Proceeds from warrant exercise	3)	—)	27)	2)
Debt issuance and other financing costs	(11)	—)	(17)	(11)
Cash paid to repurchase and retire common stock	—)	(355)	(1,073)	—)
Cash paid to purchase debt	(767)	—)	—)	—)
Cash paid for common stock dividends	(388)	(487)	(1,212)	(119)
Other	(3)	—)	—)	(1)
Net cash used in financing activities	(419)	(1,892)	(1,446)	(237)
Net increase (decrease) in cash, cash equivalents and restricted cash	(758)	961)	(722)	635)
Cash, cash equivalents and restricted cash, beginning of period	1,153)	192)	914)	279)
Cash, cash equivalents and restricted cash, end of period	395)	1,153)	192)	914)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

A significant contraction in profitability is observed between 2021 and 2024, with net income declining from 6,328 million USD to a net loss of 714 million USD. Despite this downward trend in accounting profit, net cash provided by operating activities remained positive throughout the period, although it peaked in 2022 at 4,125 million USD before declining to 1,565 million USD by 2024.

Operating Cash Flow Drivers: The divergence between net income and operating cash flow is largely attributed to non-cash adjustments. Depreciation, depletion, and amortization increased from 991 million USD in 2021 to 1,729 million USD in 2024, providing a consistent cushion to cash flow. Derivative-related gains and losses exhibited high volatility, with a substantial non-cash gain of 2,680 million USD in 2022 followed by a loss of 1,728 million USD in 2023.
Working Capital Trends: Changes in assets and liabilities have fluctuated, shifting from a positive impact of 814 million USD in 2021 to a negative impact of 315 million USD in 2024, indicating increased pressure from working capital requirements in the most recent fiscal year.

Investing activities demonstrate a strategic shift toward increased capital intensity and periodic asset monetization. Capital expenditures rose sharply from 735 million USD in 2021 to a range between 1,500 million USD and 1,800 million USD from 2022 to 2024, signaling sustained investment in long-term assets.

Asset Divestitures and Acquisitions: A major liquidity event occurred in 2023, with proceeds from divestitures of property and equipment reaching 2,533 million USD, which offset capital expenditures and resulted in a positive net cash flow from investing activities of 473 million USD for that year. In contrast, 2022 saw significant outflows due to business combinations totaling 1,967 million USD.

Financing activities have been characterized by aggressive debt management and capital returns to shareholders. Net cash used in financing activities remained negative across all four years, indicating a consistent outflow of capital to service debt and reward investors.

Debt and Equity Financing: The company utilized heavy credit facility rotations in 2022, with proceeds of 9,583 million USD from an Exit Credit Facility nearly offset by payments of 9,804 million USD. In 2024, a new issuance of senior notes provided 747 million USD, while 767 million USD was utilized to purchase debt.
Shareholder Returns: Dividends paid to common stockholders peaked at 1,212 million USD in 2022 and remained substantial at 388 million USD in 2024. Additionally, the company executed share repurchases totaling 1,073 million USD in 2022 and 355 million USD in 2023.

Overall liquidity has experienced volatility, with the ending cash and restricted cash balance dropping from 914 million USD in 2021 to a low of 192 million USD in 2022, recovering to 1,153 million USD in 2023, and ending at 395 million USD in 2024. This pattern reflects a cycle of heavy investment and debt repayment funded by a combination of operating cash flow, asset sales, and periodic debt issuance.

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