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.

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).

The financial data reveals several key trends and developments over the four-year period.

Profitability: Net income exhibits a declining trend, falling from a substantial profit of $6.3 billion in 2021 to a loss of $714 million in 2024. This deterioration indicates increasing challenges in maintaining profitability.
Non-cash Charges and Adjustments: Depreciation, depletion, and amortization (DD&A) has generally increased, reaching $1.7 billion in 2024 from $991 million in 2021, which may reflect growing asset bases or higher amortization rates.; Deferred income tax expense fluctuates, showing a sizeable tax benefit in 2022 (-$1.3 billion) but a positive expense in 2023 ($428 million), indicating volatility in tax obligations or changes in deferred tax assets/liabilities.; Derivative gains and losses demonstrate volatility, with large gains in 2021 and 2022 followed by a significant loss in 2023 and a minor gain in 2024, suggesting exposure to market risks or hedging activity impacts.; Cash settlements on derivatives correspond with the derivative gains/losses but reflect large outflows in 2021 and 2022, reversing in subsequent years to inflows, impacting operating cash flows.; Share-based compensation shows a steady increase, indicating growing employee incentives or stock-based remuneration.
Asset Sales and Impairments: Gains on sales of assets have deteriorated sharply, moving from a small loss in 2021 to substantial losses in 2022 and 2023, then improving somewhat in 2024, signaling potential challenges in asset disposals or unfavorable market conditions.; Impairment charges are negligible after 2021, implying limited asset write-downs in later periods.
Working Capital Movements: Accounts receivable and payable exhibit significant fluctuations, with large negative and positive swings, suggesting volatility in collections and payables management.; Other current assets and liabilities also show inconsistent patterns, reflecting changes in short-term operational balances.; Overall changes in assets and liabilities fluctuate, impacting cash flow from operations unpredictably across the years.
Operating Cash Flow: Net cash provided by operating activities increased markedly in 2022 to $4.1 billion but declined thereafter to $1.6 billion in 2024, following a similar but less volatile pattern than net income, indicating some resilience in cash generation despite earnings pressure.
Investing Activities: Capital expenditures remain sizable and relatively stable, around $1.5 to $1.8 billion annually, indicating ongoing investment in fixed assets.; Proceeds from divestitures peaked in 2023 at $2.5 billion, suggesting significant asset sales activity that year, but fell substantially in 2024.; Net cash from investing activities swings from negative $916 million in 2021 to positive $473 million in 2023, before turning to a negative $1.9 billion in 2024, influenced largely by asset sales and acquisitions.

Financing Activities: Debt-related activities show complex movements: proceeds from credit facilities peaked dramatically in 2022, followed by large repayments in subsequent years, reflecting active debt refinancing or repayment strategies.; Significant payments were made on Exit Credit Facility borrowings in 2021 and 2022, virtually extinguishing this in later years.; Issuance of senior notes occurred sporadically, providing inflows in 2021 and 2024.; Common stock activities declined over time, with no new issuances after 2021 and ongoing repurchases, including substantial stock repurchases in 2022 and 2023.; Dividends paid show large outflows but decreased markedly after 2022.; Net cash used in financing activities was highest in 2023 at nearly $1.9 billion, then dropped sharply in 2024, consistent with reduced financing transactions.
Liquidity and Cash Balances: Cash and equivalents at year-end demonstrate volatility, with a low of $192 million in 2022 and a peak of $1.15 billion in 2023, followed by a reduction to $395 million in 2024.; The net increase/decrease in cash closely follows operating and investing cash flow trends, suggesting reliance on internal cash generation and asset disposals for liquidity management.

In summary, the entity faces declining profitability coupled with substantial volatility in non-cash charges and derivative-related items. Operating cash flow remains positive but has diminished after peaking in 2022. Capital investment persists at a relatively high level, offset partially by asset sales. Financing activity is dominated by significant debt refinancing and reduction, alongside stock repurchase programs and dividend payments, reflecting active balance sheet management. Liquidity levels fluctuate significantly, underscoring potential challenges in maintaining consistent cash reserves amid operating pressures and financing adjustments.

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Expand Energy Corp. (NASDAQ:EXE)

Cash Flow Statement