Enterprise Value to FCFF (EV/FCFF)
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Free Cash Flow to The Firm (FCFF)
Expand Energy Corp., FCFF 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).
The financial performance exhibits significant fluctuations across the analyzed periods, particularly in the cash flow-related items. Both net cash provided by operating activities and free cash flow to the firm (FCFF) show notable volatility, indicating shifts in operational efficiency and investment strategies over time.
- Net cash provided by operating activities
- The net cash generated from operating activities increased substantially from US$1,788 million at the end of 2021 to a peak of US$4,125 million in 2022. This nearly 131% increase suggests a strong improvement in core business operations during that period. However, this was followed by a decrease to US$2,380 million in 2023, representing a 42% decline from the previous year. The diminution continued into 2024, with net operating cash flow falling further to US$1,565 million, signifying a 34% reduction from 2023 and a value below the 2021 level. This trend may reflect increased operational challenges or changes in working capital management.
- Free cash flow to the firm (FCFF)
- The FCFF follows a similar pattern of initial growth and subsequent dramatic decline. From US$1,103 million in 2021, FCFF rose sharply by approximately 156% to US$2,824 million in 2022, and further increased slightly to US$3,175 million in 2023, indicating enhanced cash generation available to all capital providers. However, in 2024, FCFF plummeted to only US$108 million, representing a drastic 97% decrease from the prior year. This stark reduction may indicate substantial capital expenditures, changes in investment strategy, or operational difficulties affecting the firm's ability to generate free cash flow.
Overall, the data reveals an initial phase of strong cash flow generation in 2022 and 2023, followed by a marked weakening in 2024. Such volatility in key cash flow measures suggests the company may be experiencing cyclical external pressures, shifting internal conditions, or strategic realignments impacting its liquidity and investment capacity.
Interest Paid, Net of Tax
Expand Energy Corp., interest paid, net of tax calculation
US$ 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).
2 2024 Calculation
Interest paid, net of capitalized interest, tax = Interest paid, net of capitalized interest × EITR
= × =
- Effective income tax rate (EITR)
- The effective income tax rate remained stable at 21% from 2021 to 2022. It then increased moderately to 22.4% in 2023 before experiencing a significant decrease to 15.1% in 2024. This sharp decline in 2024 may indicate changes in tax legislation, tax planning strategies, or shifts in the geographic distribution of taxable income.
- Interest paid, net of capitalized interest, net of tax
- Interest expenses demonstrated notable fluctuations over the period. In 2021, net interest paid was US$37 million, which sharply increased to US$115 million in 2022. This peak was followed by a decline to US$91 million in 2023, continuing down to US$79 million in 2024. The trend shows a reduction in interest burden after the substantial rise in 2022, suggesting improved debt management or refinancing activities.
Enterprise Value to FCFF Ratio, Current
Expand Energy Corp., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Chevron Corp. | |
| ConocoPhillips | |
| Exxon Mobil Corp. | |
| Occidental Petroleum Corp. | |
| EV/FCFF, Sector | |
| Oil, Gas & Consumable Fuels | |
| EV/FCFF, Industry | |
| Energy | |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.
Enterprise Value to FCFF Ratio, Historical
Expand Energy Corp., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Enterprise value (EV)1 | |||||
| Free cash flow to the firm (FCFF)2 | |||||
| Valuation Ratio | |||||
| EV/FCFF3 | |||||
| Benchmarks | |||||
| EV/FCFF, Competitors4 | |||||
| Chevron Corp. | |||||
| ConocoPhillips | |||||
| Exxon Mobil Corp. | |||||
| Occidental Petroleum Corp. | |||||
| EV/FCFF, Sector | |||||
| Oil, Gas & Consumable Fuels | |||||
| EV/FCFF, Industry | |||||
| Energy | |||||
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).
3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value shows a fluctuating trend over the analyzed periods. It increased significantly from US$9,771 million at the end of 2021 to US$13,638 million in 2022, then decreased to US$11,842 million in 2023 before sharply rising to US$29,120 million in 2024. This pattern indicates considerable volatility, culminating in a substantial increase in 2024.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow to the firm experienced strong growth from US$1,103 million in 2021 to US$2,824 million in 2022 and further increased to US$3,175 million in 2023. However, in 2024, there was a dramatic decline to just US$108 million, representing a significant drop compared to prior years. This decline suggests a major change in the firm's cash generation capability or potential operational challenges during 2024.
- EV/FCFF Ratio
- The EV/FCFF ratio declined steadily from 8.86 in 2021 to 4.83 in 2022 and further to 3.73 in 2023, indicating an improving valuation relative to cash flow during this period. However, in 2024, the ratio surged sharply to 269.74. This spike is attributable to the combination of a high EV and the steep drop in FCFF, signaling a potentially overvalued enterprise in relation to its cash flow or a transient anomaly in cash flow generation.