Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Debt Ratios
Coverage Ratios
Expand Energy Corp., solvency ratios
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 solvency profile of Expand Energy Corp. exhibited a period of strengthening between 2021 and 2023, followed by a notable deterioration in the 2024 fiscal year. While the company successfully reduced its leverage ratios to their lowest points by the end of 2023, this positive trend reversed in 2024, coinciding with a critical collapse in the company's ability to service its obligations.
- Leverage and Capital Structure Trends
- A consistent downward trend in leverage was observed from 2021 through 2023. The debt to equity ratio declined from 0.40 in 2021 to a minimum of 0.19 in 2023, while the debt to assets ratio reached a low of 0.14 during the same period. However, 2024 marked a reversal of this deleveraging phase, with the debt to equity ratio increasing to 0.32 and the debt to assets ratio returning to 0.20. Financial leverage similarly decreased from 1.94 in 2021 to 1.34 in 2023, before rising again to 1.59 by the end of 2024.
- Impact of Operating Lease Liabilities
- The inclusion of operating lease liabilities results in a negligible increase across all solvency metrics. The debt to equity and debt to capital ratios including leases remained closely aligned with their standard counterparts throughout the four-year period, suggesting that lease obligations represent a minimal portion of the total liability structure.
- Debt Coverage and Solvency Risk
- Coverage ratios indicate a severe decline in financial stability. Interest coverage fell precipitously from a high of 75.07 in 2021 to 23.82 in 2022, followed by a slight recovery to 30.97 in 2023, before plummeting to -5.84 in 2024. Fixed charge coverage followed an identical trajectory, ending the period at -2.99. The transition to negative coverage ratios in 2024 signifies that operating income is no longer sufficient to cover interest and fixed charges, indicating a significant increase in insolvency risk.
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Debt to Equity
Expand Energy Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Current maturities of long-term debt, net | 389) | —) | —) | —) | |
| Long-term debt, net, excluding current maturities | 5,291) | 2,028) | 3,093) | 2,278) | |
| Total debt | 5,680) | 2,028) | 3,093) | 2,278) | |
| Stockholders’ equity | 17,565) | 10,729) | 9,124) | 5,671) | |
| Solvency Ratio | |||||
| Debt to equity1 | 0.32 | 0.19 | 0.34 | 0.40 | |
| Benchmarks | |||||
| Debt to Equity, Competitors2 | |||||
| Chevron Corp. | 0.16 | 0.13 | 0.15 | 0.23 | |
| ConocoPhillips | 0.38 | 0.38 | 0.35 | 0.44 | |
| ExxonMobil Holdings Corp. | 0.16 | 0.20 | 0.21 | 0.28 | |
| Debt to Equity, Sector | |||||
| Oil, Gas & Consumable Fuels | 0.19 | 0.20 | 0.20 | 0.28 | |
| Debt to Equity, Industry | |||||
| Energy | 0.20 | 0.21 | 0.22 | 0.31 | |
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 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 5,680 ÷ 17,565 = 0.32
2 Click competitor name to see calculations.
The solvency profile from 2021 through 2024 is characterized by a consistent and substantial expansion of stockholders' equity alongside fluctuating levels of total debt. While total debt experienced a sharp increase in the final year of the period, the overall leverage remains conservative relative to the company's equity base.
- Stockholders' Equity Expansion
- A continuous upward trajectory is observed in stockholders' equity, which grew from US$ 5,671 million in 2021 to US$ 17,565 million by December 31, 2024. This steady growth indicates a significant strengthening of the company's internal funding and net asset position.
- Total Debt Volatility
- Total debt levels exhibited non-linear movement, rising from US$ 2,278 million in 2021 to US$ 3,093 million in 2022, before decreasing to US$ 2,028 million in 2023. A notable escalation occurred in 2024, where total debt increased to US$ 5,680 million, representing the highest debt level within the analyzed period.
- Debt to Equity Ratio Trends
- The debt to equity ratio followed a downward trend for the first three years, declining from 0.40 in 2021 to a low of 0.19 in 2023. In 2024, the ratio rose to 0.32. Although the total debt more than doubled between 2023 and 2024, the simultaneous surge in stockholders' equity mitigated the impact, keeping the ratio well below the 2021 levels.
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Debt to Equity (including Operating Lease Liability)
Expand Energy Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Current maturities of long-term debt, net | 389) | —) | —) | —) | |
| Long-term debt, net, excluding current maturities | 5,291) | 2,028) | 3,093) | 2,278) | |
| Total debt | 5,680) | 2,028) | 3,093) | 2,278) | |
| Current operating lease liabilities | 71) | 84) | 86) | 29) | |
| Long-term operating lease liabilities | 74) | 15) | 33) | 9) | |
| Total debt (including operating lease liability) | 5,825) | 2,127) | 3,212) | 2,316) | |
| Stockholders’ equity | 17,565) | 10,729) | 9,124) | 5,671) | |
| Solvency Ratio | |||||
| Debt to equity (including operating lease liability)1 | 0.33 | 0.20 | 0.35 | 0.41 | |
| Benchmarks | |||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||
| Chevron Corp. | 0.19 | 0.16 | 0.17 | 0.25 | |
| ConocoPhillips | 0.39 | 0.40 | 0.36 | 0.45 | |
| ExxonMobil Holdings Corp. | 0.18 | 0.23 | 0.24 | 0.31 | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||
| Oil, Gas & Consumable Fuels | 0.21 | 0.22 | 0.23 | 0.31 | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||
| Energy | 0.23 | 0.24 | 0.25 | 0.34 | |
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 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 5,825 ÷ 17,565 = 0.33
2 Click competitor name to see calculations.
The financial solvency profile is characterized by a significant expansion of stockholders' equity and fluctuating levels of total debt. While there was a substantial increase in total obligations in the final year, the concurrent growth in equity has mitigated the impact on overall leverage.
- Debt Accumulation Patterns
- Total debt, including operating lease liabilities, exhibited volatility between 2021 and 2024. Following an increase in 2022, debt levels decreased in 2023 to 2,127 million before rising sharply to 5,825 million by the end of 2024.
- Equity Growth Trend
- Stockholders' equity demonstrated a consistent and strong upward trajectory, increasing from 5,671 million in 2021 to 17,565 million in 2024. This steady growth indicates a substantial increase in the company's net asset base over the analyzed period.
- Debt to Equity Ratio Analysis
- The debt to equity ratio declined from 0.41 in 2021 to a low of 0.20 in 2023, marking a period of reduced financial leverage. In 2024, the ratio increased to 0.33 following the spike in total debt. However, because equity also grew significantly in 2024, the solvency ratio remained below the 2021 level, suggesting that equity growth is offsetting the increase in borrowed funds.
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Debt to Capital
Expand Energy Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Current maturities of long-term debt, net | 389) | —) | —) | —) | |
| Long-term debt, net, excluding current maturities | 5,291) | 2,028) | 3,093) | 2,278) | |
| Total debt | 5,680) | 2,028) | 3,093) | 2,278) | |
| Stockholders’ equity | 17,565) | 10,729) | 9,124) | 5,671) | |
| Total capital | 23,245) | 12,757) | 12,217) | 7,949) | |
| Solvency Ratio | |||||
| Debt to capital1 | 0.24 | 0.16 | 0.25 | 0.29 | |
| Benchmarks | |||||
| Debt to Capital, Competitors2 | |||||
| Chevron Corp. | 0.14 | 0.11 | 0.13 | 0.18 | |
| ConocoPhillips | 0.27 | 0.28 | 0.26 | 0.31 | |
| ExxonMobil Holdings Corp. | 0.14 | 0.17 | 0.17 | 0.22 | |
| Debt to Capital, Sector | |||||
| Oil, Gas & Consumable Fuels | 0.16 | 0.16 | 0.17 | 0.22 | |
| Debt to Capital, Industry | |||||
| Energy | 0.17 | 0.18 | 0.18 | 0.24 | |
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 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 5,680 ÷ 23,245 = 0.24
2 Click competitor name to see calculations.
An analysis of the solvency position from 2021 to 2024 reveals a period of significant fluctuation in capital structure, characterized by a downward trend in leverage until 2023, followed by a substantial expansion of both debt and total capital in 2024.
- Total Debt Trends
- Total debt exhibited volatility over the observed period. After increasing from 2,278 million US$ in 2021 to 3,093 million US$ in 2022, the balance was reduced to 2,028 million US$ by the end of 2023. However, 2024 marked a sharp increase in borrowing, with total debt rising to 5,680 million US$, representing a nearly 180% increase from the previous year.
- Total Capital Growth
- Total capital demonstrated a consistent upward trajectory. The base increased from 7,949 million US$ in 2021 to 12,757 million US$ by 2023. A major expansion occurred in 2024, where total capital grew to 23,245 million US$, indicating a significant increase in the overall funding base of the entity.
- Debt to Capital Ratio Dynamics
- The debt to capital ratio declined steadily from 0.29 in 2021 to a period low of 0.16 in 2023, suggesting a strategic deleveraging or a faster growth in equity relative to debt. In 2024, the ratio rose to 0.24. While the absolute amount of debt increased substantially in the final year, the simultaneous surge in total capital prevented the ratio from returning to 2021 levels, maintaining a more conservative leverage profile than at the start of the period.
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Debt to Capital (including Operating Lease Liability)
Expand Energy Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Current maturities of long-term debt, net | 389) | —) | —) | —) | |
| Long-term debt, net, excluding current maturities | 5,291) | 2,028) | 3,093) | 2,278) | |
| Total debt | 5,680) | 2,028) | 3,093) | 2,278) | |
| Current operating lease liabilities | 71) | 84) | 86) | 29) | |
| Long-term operating lease liabilities | 74) | 15) | 33) | 9) | |
| Total debt (including operating lease liability) | 5,825) | 2,127) | 3,212) | 2,316) | |
| Stockholders’ equity | 17,565) | 10,729) | 9,124) | 5,671) | |
| Total capital (including operating lease liability) | 23,390) | 12,856) | 12,336) | 7,987) | |
| Solvency Ratio | |||||
| Debt to capital (including operating lease liability)1 | 0.25 | 0.17 | 0.26 | 0.29 | |
| Benchmarks | |||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||
| Chevron Corp. | 0.16 | 0.14 | 0.15 | 0.20 | |
| ConocoPhillips | 0.28 | 0.28 | 0.26 | 0.31 | |
| ExxonMobil Holdings Corp. | 0.15 | 0.19 | 0.19 | 0.24 | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||
| Oil, Gas & Consumable Fuels | 0.18 | 0.18 | 0.19 | 0.23 | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||
| Energy | 0.19 | 0.20 | 0.20 | 0.25 | |
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 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 5,825 ÷ 23,390 = 0.25
2 Click competitor name to see calculations.
The solvency profile of Expand Energy Corp. from 2021 to 2024 is characterized by a consistent expansion of the total capital base and significant volatility in total debt levels. While the company achieved a period of deleveraging through 2023, a substantial increase in liabilities occurred in 2024, though the overall solvency ratio remained below 2021 levels.
- Debt to Capital Ratio Trends
- The debt to capital ratio exhibited a steady decline from 0.29 in 2021 to a minimum of 0.17 in 2023, indicating a strengthening of the solvency position. This trend reversed in 2024, with the ratio rising to 0.25. Despite this recent increase, the ratio remains lower than the 2021 starting point, suggesting a moderate increase in financial leverage relative to the total capital structure.
- Total Debt Volatility
- Total debt, including operating lease liabilities, experienced significant fluctuations over the analyzed period. After rising to US$ 3,212 million in 2022, debt was reduced to US$ 2,127 million by the end of 2023. However, a sharp increase was observed in 2024, with total debt reaching US$ 5,825 million, marking a substantial increase in borrowed capital and lease obligations.
- Total Capital Growth
- A consistent upward trend is observed in total capital, which grew from US$ 7,987 million in 2021 to US$ 23,390 million by December 31, 2024. The most pronounced growth occurred between 2023 and 2024, where total capital nearly doubled. This aggressive expansion of the capital base served as a buffer, preventing the 2024 debt surge from driving the debt-to-capital ratio higher than the 2021 peak.
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Debt to Assets
Expand Energy Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Current maturities of long-term debt, net | 389) | —) | —) | —) | |
| Long-term debt, net, excluding current maturities | 5,291) | 2,028) | 3,093) | 2,278) | |
| Total debt | 5,680) | 2,028) | 3,093) | 2,278) | |
| Total assets | 27,894) | 14,376) | 15,468) | 11,009) | |
| Solvency Ratio | |||||
| Debt to assets1 | 0.20 | 0.14 | 0.20 | 0.21 | |
| Benchmarks | |||||
| Debt to Assets, Competitors2 | |||||
| Chevron Corp. | 0.10 | 0.08 | 0.09 | 0.13 | |
| ConocoPhillips | 0.20 | 0.20 | 0.18 | 0.22 | |
| ExxonMobil Holdings Corp. | 0.09 | 0.11 | 0.11 | 0.14 | |
| Debt to Assets, Sector | |||||
| Oil, Gas & Consumable Fuels | 0.11 | 0.11 | 0.11 | 0.15 | |
| Debt to Assets, Industry | |||||
| Energy | 0.12 | 0.12 | 0.12 | 0.16 | |
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 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 5,680 ÷ 27,894 = 0.20
2 Click competitor name to see calculations.
The solvency profile between 2021 and 2024 exhibits a period of initial stabilization followed by a substantial expansion of the balance sheet. Despite significant fluctuations in absolute debt and asset values, the debt-to-assets ratio remained relatively contained, fluctuating within a range of 0.14 to 0.21.
- Total Debt Trends
- Total debt experienced notable volatility over the four-year period. An increase from US$ 2,278 million in 2021 to US$ 3,093 million in 2022 was followed by a reduction to US$ 2,028 million in 2023. However, 2024 marked a significant escalation in leverage, with total debt rising to US$ 5,680 million, representing a sharp increase in total obligations.
- Total Asset Growth
- Assets demonstrated an overall upward trajectory, growing from US$ 11,009 million in 2021 to US$ 14,376 million by the end of 2023. A substantial increase occurred in 2024, where total assets reached US$ 27,894 million, indicating a massive expansion of the resource base.
- Debt to Assets Ratio Analysis
- The debt to assets ratio showed a gradual improvement from 0.21 in 2021 to a low of 0.14 in 2023, reflecting a period of relative deleveraging. In 2024, the ratio returned to 0.20. The simultaneous surge in both debt and assets in the final year suggests that the increased borrowing was utilized to acquire significant new assets, thereby maintaining a stable solvency ratio despite the higher absolute level of debt.
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Debt to Assets (including Operating Lease Liability)
Expand Energy Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Current maturities of long-term debt, net | 389) | —) | —) | —) | |
| Long-term debt, net, excluding current maturities | 5,291) | 2,028) | 3,093) | 2,278) | |
| Total debt | 5,680) | 2,028) | 3,093) | 2,278) | |
| Current operating lease liabilities | 71) | 84) | 86) | 29) | |
| Long-term operating lease liabilities | 74) | 15) | 33) | 9) | |
| Total debt (including operating lease liability) | 5,825) | 2,127) | 3,212) | 2,316) | |
| Total assets | 27,894) | 14,376) | 15,468) | 11,009) | |
| Solvency Ratio | |||||
| Debt to assets (including operating lease liability)1 | 0.21 | 0.15 | 0.21 | 0.21 | |
| Benchmarks | |||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||
| Chevron Corp. | 0.12 | 0.10 | 0.11 | 0.15 | |
| ConocoPhillips | 0.21 | 0.20 | 0.18 | 0.23 | |
| ExxonMobil Holdings Corp. | 0.11 | 0.13 | 0.13 | 0.16 | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||
| Oil, Gas & Consumable Fuels | 0.12 | 0.13 | 0.13 | 0.16 | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||
| Energy | 0.13 | 0.14 | 0.14 | 0.17 | |
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 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 5,825 ÷ 27,894 = 0.21
2 Click competitor name to see calculations.
The solvency profile of the organization demonstrates a period of relative stability in its debt-to-asset proportion, despite significant fluctuations in the absolute values of both total debt and total assets between 2021 and 2024.
- Debt to Assets Ratio Trend
- The ratio remained constant at 0.21 through 2021 and 2022, followed by a decrease to 0.15 in 2023. By the end of 2024, the ratio returned to 0.21, indicating that the company has maintained a consistent long-term target for the proportion of its asset base financed through debt and operating lease liabilities.
- Balance Sheet Expansion in 2024
- A substantial increase in the scale of the balance sheet is observed in 2024. Total assets increased from 14,376 million US dollars to 27,894 million US dollars, while total debt rose from 2,127 million US dollars to 5,825 million US dollars. This simultaneous surge suggests a major capital expansion or acquisition event, funded in a manner that preserved the historical solvency ratio of 0.21.
- Deleveraging Period in 2023
- A temporary improvement in solvency occurred in 2023, with the debt-to-assets ratio reaching a four-year low of 0.15. This shift was primarily driven by a reduction in total debt to 2,127 million US dollars, representing the lowest debt level within the analyzed period, while assets experienced only a marginal decline from the prior year.
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Financial Leverage
Expand Energy Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Total assets | 27,894) | 14,376) | 15,468) | 11,009) | |
| Stockholders’ equity | 17,565) | 10,729) | 9,124) | 5,671) | |
| Solvency Ratio | |||||
| Financial leverage1 | 1.59 | 1.34 | 1.70 | 1.94 | |
| Benchmarks | |||||
| Financial Leverage, Competitors2 | |||||
| Chevron Corp. | 1.69 | 1.63 | 1.62 | 1.72 | |
| ConocoPhillips | 1.89 | 1.95 | 1.95 | 2.00 | |
| ExxonMobil Holdings Corp. | 1.72 | 1.84 | 1.89 | 2.01 | |
| Financial Leverage, Sector | |||||
| Oil, Gas & Consumable Fuels | 1.73 | 1.77 | 1.79 | 1.90 | |
| Financial Leverage, Industry | |||||
| Energy | 1.76 | 1.80 | 1.82 | 1.93 | |
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 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 27,894 ÷ 17,565 = 1.59
2 Click competitor name to see calculations.
Between 2021 and 2024, a substantial expansion of the balance sheet occurred. Total assets grew from US$ 11,009 million to US$ 27,894 million, representing a significant increase in the scale of operations, particularly during the 2024 fiscal year. Concurrently, stockholders' equity maintained a consistent upward trajectory, rising from US$ 5,671 million in 2021 to US$ 17,565 million in 2024.
- Financial Leverage Trend
- The financial leverage ratio exhibited a declining trend from 2021 through 2023, decreasing from 1.94 to 1.34. This movement indicates a period of deleveraging and a reduced reliance on debt relative to equity. However, this trend reversed in 2024, as the ratio increased to 1.59.
- Asset Expansion and Leverage Correlation
- The increase in the leverage ratio in 2024 correlates with a sharp expansion of the asset base, which grew by approximately 94% from the previous year. While stockholders' equity also increased significantly, the growth in total assets outpaced the increase in equity, leading to the observed rise in the financial leverage ratio.
- Comparative Solvency Position
- Despite the upward shift in leverage in the final year, the ratio of 1.59 remains below the 1.94 level recorded in 2021. This suggests that the organization maintains a more conservative solvency profile than it did at the beginning of the analyzed period, even following a period of aggressive asset acquisition.
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Interest Coverage
Expand Energy Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net income (loss) | (714) | 2,419) | 4,936) | 6,328) | |
| Add: Income tax expense | (127) | 698) | (1,285) | (106) | |
| Add: Interest expense | 123) | 104) | 160) | 84) | |
| Earnings before interest and tax (EBIT) | (718) | 3,221) | 3,811) | 6,306) | |
| Solvency Ratio | |||||
| Interest coverage1 | -5.84 | 30.97 | 23.82 | 75.07 | |
| Benchmarks | |||||
| Interest Coverage, Competitors2 | |||||
| Chevron Corp. | 47.31 | 64.08 | 97.27 | 31.39 | |
| ConocoPhillips | 18.46 | 21.88 | 36.07 | 15.38 | |
| ExxonMobil Holdings Corp. | 50.07 | 63.17 | 98.43 | 33.98 | |
| Interest Coverage, Sector | |||||
| Oil, Gas & Consumable Fuels | 38.95 | 48.02 | 74.46 | 26.79 | |
| Interest Coverage, Industry | |||||
| Energy | 34.18 | 40.96 | 62.30 | 23.05 | |
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 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= -718 ÷ 123 = -5.84
2 Click competitor name to see calculations.
The solvency profile of Expand Energy Corp. has experienced a severe deterioration between 2021 and 2024, characterized by a transition from a position of extreme financial strength to an inability to cover interest obligations through operating profits.
- Earnings Before Interest and Tax (EBIT)
- A consistent and accelerating downward trend in EBIT is observed. Operating earnings fell from 6,306 million US$ in 2021 to 3,811 million US$ in 2022, followed by a further decline to 3,221 million US$ in 2023. This trajectory culminated in a significant reversal in 2024, with EBIT falling into negative territory at -718 million US$, representing a total collapse of operating profitability over the analyzed period.
- Interest Expense
- Interest costs have remained volatile but overall elevated compared to the 2021 baseline. Expenses increased from 84 million US$ in 2021 to a peak of 160 million US$ in 2022. While a partial reduction to 104 million US$ occurred in 2023, costs rose again to 123 million US$ by the end of 2024.
- Interest Coverage Ratio
- The capacity to service debt has declined precipitously. The coverage ratio dropped from a robust 75.07 in 2021 to 23.82 in 2022. Despite a moderate recovery to 30.97 in 2023, the ratio crashed to -5.84 in 2024. This negative value indicates that current operating earnings are insufficient to meet interest payments, signaling a critical increase in solvency risk and a dependence on cash reserves or external financing to maintain debt obligations.
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Fixed Charge Coverage
Expand Energy Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Federal statutory tax rate | 21.00% | 21.00% | 21.00% | 21.00% | |
| Selected Financial Data (US$ in millions) | |||||
| Net income (loss) | (714) | 2,419) | 4,936) | 6,328) | |
| Add: Income tax expense | (127) | 698) | (1,285) | (106) | |
| Add: Interest expense | 123) | 104) | 160) | 84) | |
| Earnings before interest and tax (EBIT) | (718) | 3,221) | 3,811) | 6,306) | |
| Add: Operating lease cost | 88) | 107) | 51) | 36) | |
| Earnings before fixed charges and tax | (630) | 3,328) | 3,862) | 6,342) | |
| Interest expense | 123) | 104) | 160) | 84) | |
| Operating lease cost | 88) | 107) | 51) | 36) | |
| Deemed dividend on warrants | —) | —) | 67) | —) | |
| Deemed dividend on warrants, tax adjustment1 | —) | —) | 18) | —) | |
| Deemed dividend on warrants, after tax adjustment | —) | —) | 85) | —) | |
| Fixed charges | 211) | 211) | 296) | 120) | |
| Solvency Ratio | |||||
| Fixed charge coverage2 | -2.99 | 15.77 | 13.06 | 52.85 | |
| Benchmarks | |||||
| Fixed Charge Coverage, Competitors3 | |||||
| Chevron Corp. | 7.81 | 9.57 | 18.28 | 8.43 | |
| ConocoPhillips | 13.34 | 17.14 | 28.76 | 11.94 | |
| ExxonMobil Holdings Corp. | 15.85 | 19.68 | 31.21 | 13.55 | |
| Fixed Charge Coverage, Sector | |||||
| Oil, Gas & Consumable Fuels | 11.67 | 14.54 | 25.07 | 10.99 | |
| Fixed Charge Coverage, Industry | |||||
| Energy | 10.25 | 12.31 | 20.61 | 9.19 | |
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 2024 Calculation
Deemed dividend on warrants, tax adjustment = (Deemed dividend on warrants × Federal statutory tax rate) ÷ (1 − Federal statutory tax rate)
= (0 × 21.00%) ÷ (1 − 21.00%) = 0
2 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= -630 ÷ 211 = -2.99
3 Click competitor name to see calculations.
The solvency profile of Expand Energy Corp. experienced a significant deterioration between 2021 and 2024, characterized by a sharp reduction in earnings capacity relative to fixed obligations. The fixed charge coverage ratio transitioned from a position of substantial strength to a deficit by the conclusion of the analyzed period.
- Earnings Before Fixed Charges and Tax (EBFCT)
- A consistent downward trajectory is evident in earnings before fixed charges and tax. Values decreased from US$ 6,342 million in 2021 to US$ 3,328 million in 2023, ultimately falling to a negative balance of US$ 630 million in 2024. This contraction represents a severe erosion of the operational profitability available to service fixed commitments.
- Fixed Charge Obligations
- Fixed charges exhibited volatility in the early stages of the period, increasing from US$ 120 million in 2021 to a peak of US$ 296 million in 2022. These obligations subsequently stabilized, remaining constant at US$ 211 million for both the 2023 and 2024 fiscal years.
- Fixed Charge Coverage Ratio
- The coverage ratio declined precipitously from 52.85 in 2021 to 13.06 in 2022. Although a marginal recovery to 15.77 was observed in 2023, the ratio collapsed to -2.99 in 2024. This negative value indicates that earnings were insufficient to cover fixed charges during the final year, marking a critical shift in the company's solvency risk.
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