Market Value Added (MVA)
Market value added (MVA) is the difference between a firm fair value and its invested capital. MVA is a measure of the value a company has created in excess of the resources already committed to the enterprise.
MVA
Expand Energy Corp., MVA calculation
US$ in millions
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).
1 Fair value of debt. See details »
2 Invested capital. See details »
The financial trajectory from 2021 to 2024 is characterized by a period of moderate growth followed by a significant acceleration in both valuation and capital deployment. While the company maintained a positive Market Value Added (MVA) throughout the period, the relationship between invested capital and market perception experienced notable volatility, particularly between 2023 and 2024.
- Market Value Evolution
- The fair market value demonstrated a steady increase from US$ 10,758 million in 2021 to US$ 13,783 million in 2022, before experiencing a slight contraction to US$ 13,009 million in 2023. A substantial surge occurred in 2024, with the market value rising to US$ 29,528 million, indicating a strong positive shift in investor sentiment or a significant corporate event.
- Invested Capital Trends
- Invested capital exhibited a continuous upward trend over the four-year period. Capital grew from US$ 7,990 million in 2021 to US$ 11,924 million by the end of 2023. The most prominent increase took place in 2024, where invested capital nearly doubled to US$ 22,822 million, suggesting a period of aggressive expansion or major acquisition activity.
- Market Value Added (MVA) Performance
- The MVA remained stable between 2021 and 2022, with values of US$ 2,768 million and US$ 2,795 million, respectively. A sharp compression was observed in 2023, as MVA dropped to US$ 1,085 million, signaling that the increase in invested capital was not proportionally matched by an increase in market value. This trend reversed decisively in 2024, with MVA peaking at US$ 6,706 million, reflecting a high level of value creation relative to the capital invested.
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MVA Spread Ratio
Expand Energy Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Market value added (MVA)1 | 6,706) | 1,085) | 2,795) | 2,768) | |
| Invested capital2 | 22,822) | 11,924) | 10,988) | 7,990) | |
| Performance Ratio | |||||
| MVA spread ratio3 | 29.39% | 9.10% | 25.44% | 34.64% | |
| Benchmarks | |||||
| MVA Spread Ratio, Competitors4 | |||||
| Chevron Corp. | 46.44% | 47.11% | 57.71% | 54.49% | |
| ConocoPhillips | 38.56% | 83.41% | 93.55% | 86.17% | |
| ExxonMobil Holdings Corp. | 39.78% | 51.74% | 67.23% | 42.25% | |
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).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 6,706 ÷ 22,822 = 29.39%
4 Click competitor name to see calculations.
The financial trajectory of Expand Energy Corp. between 2021 and 2024 is characterized by a period of contraction in value creation followed by a substantial expansion in both capital investment and market valuation. While efficiency metrics declined steadily through 2023, the 2024 fiscal year demonstrates a significant recovery in the company's ability to generate market value relative to its invested capital.
- Market Value Added (MVA)
- MVA remained relatively stable between 2021 and 2022, shifting slightly from US$ 2,768 million to US$ 2,795 million. A sharp contraction occurred in 2023, with value dropping to US$ 1,085 million. This trend reversed aggressively in 2024, as MVA surged to US$ 6,706 million, representing a significant increase in the market's valuation of the company's invested capital.
- Invested Capital
- A consistent upward trend in invested capital is evident over the analyzed period. Capital increased from US$ 7,990 million in 2021 to US$ 11,924 million by the end of 2023. A substantial escalation occurred in 2024, with invested capital nearly doubling to US$ 22,822 million, indicating a period of intense capital deployment or acquisition activity.
- MVA Spread Ratio
- The MVA spread ratio experienced a prolonged decline from 2021 to 2023, falling from 34.64% to a low of 9.10%. This downward movement suggests a diminishing margin of value creation over the cost of capital during this window. However, the ratio rebounded to 29.39% in 2024, signaling a strong recovery in value-creation efficiency and a realignment of market expectations with the increased capital base.
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MVA Margin
Expand Energy Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Market value added (MVA)1 | 6,706) | 1,085) | 2,795) | 2,768) | |
| Revenues | 4,259) | 6,047) | 14,123) | 7,301) | |
| Performance Ratio | |||||
| MVA margin2 | 157.47% | 17.95% | 19.79% | 37.91% | |
| Benchmarks | |||||
| MVA Margin, Competitors3 | |||||
| Chevron Corp. | 50.04% | 50.80% | 51.99% | 67.80% | |
| ConocoPhillips | 74.93% | 120.75% | 90.01% | 143.57% | |
| ExxonMobil Holdings Corp. | 44.44% | 47.49% | 50.09% | 41.64% | |
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).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Revenues
= 100 × 6,706 ÷ 4,259 = 157.47%
3 Click competitor name to see calculations.
The financial trajectory of Expand Energy Corp. between 2021 and 2024 is characterized by a significant divergence between operational revenue and market valuation. While revenues peaked in 2022 and entered a steady decline thereafter, the market value added experienced a dramatic surge in the final year of the period.
- Market Value Added (MVA)
- MVA remained relatively stable from 2021 to 2022, shifting slightly from US$ 2,768 million to US$ 2,795 million. A notable contraction occurred in 2023, where the value dropped to US$ 1,085 million. However, 2024 saw an abrupt and substantial increase, with MVA climbing to US$ 6,706 million, the highest level recorded in the four-year period.
- Revenue Trends
- Revenues showed extreme volatility, nearly doubling from US$ 7,301 million in 2021 to a peak of US$ 14,123 million in 2022. Following this peak, a consistent downward trend is observed; revenues fell to US$ 6,047 million in 2023 and continued to decline to US$ 4,259 million by December 31, 2024.
- MVA Margin Analysis
- The MVA margin followed a declining path for the first three years, falling from 37.91% in 2021 to 19.79% in 2022, and further to 17.95% in 2023. This suggests a period where market value growth lagged behind revenue fluctuations. In 2024, the margin experienced an exponential increase to 157.47%. This sharp rise is mathematically driven by the simultaneous occurrence of record-low revenues and record-high MVA, indicating that market valuation has decoupled from current top-line performance.
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