Can EXE maintain its Q2 2022 profit levels?

**Expand Energy (EXE) is unlikely to maintain its Q2 2022 profit levels** based on the current financial data and market conditions. Here's why: 1. **Recent Financial Performance**: EXE's net income has been negative in the past three quarters, with figures of -$114 million for Q3 2024, -$227 million for Q2 2024, and -$399 million for Q4 2024. This trend of declining net income suggests that the company is facing significant challenges. |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |EXE|EXE.O|Expand Energy|2024 Q1|-98.12814974802015|2.6E7|185| |EXE|EXE.O|Expand Energy|2024 Q2|-158.05626598465474|-2.27E8|185| |EXE|EXE.O|Expand Energy|2024 Q3|-262.85714285714283|-1.14E8|185| |EXE|EXE.O|Expand Energy|2024 Q4|-170.12302284710017|-3.99E8|185| 2. **Comparative Analysis**: Q2 2022's profit levels are not available. However, comparing the available quarters, the net income in Q2 2024 was -$227 million, which is a substantial loss. Given the ongoing negative trend, it is doubtful that the company can match its profitability from Q2 2022, let alone maintain it. 3. **Market Conditions and Forecasts**: Despite strong natural gas fundamentals and the potential for increased production capacity, the company's stock price has experienced volatility. The forecast for Q4 earnings per share (EPS) is $0.30, which is significantly lower than any previous quarter's EPS, including Q2 2022. This indicates a challenging market environment for the company to achieve previous profit levels. 4. **Strategic Focus**: EXE has been focused on debt reduction and shareholder returns, with plans to allocate $500 million to debt reduction in 2025. This strategic focus on debt management rather than immediate profitability suggests that the company is prioritizing stability over peak earnings. 5. **Analyst Expectations**: Analysts have revised their estimates for Q4 2024, with a predicted EPS of $0.53 per share, reflecting a decline of 59.5% compared to the same period last year. This consensus reflects a broader market sentiment that does not anticipate a return to previous profit levels in the near term. In conclusion, given the company's current financial performance, market conditions, and strategic priorities, it is unlikely that EXE can maintain its Q2 2022 profit levels. The company is facing significant headwinds, and while there may be potential for recovery, the near-term outlook does not support a return to previous earnings benchmarks.