Expand Energy WRT C 2025 Q1 Earnings Misses Targets as Net Income Drops 1057.7%

Expand Energy WRT C (EXEEL) reported its fiscal 2025 Q1 earnings on April 29, 2025. The company missed market expectations with a significant decline in net income and earnings per share. Despite a 103.1% increase in revenue from the previous year, the company swung to a net loss, indicating operational challenges. Guidance remains optimistic, with planned investments and synergy targets set for future growth.

Revenue
The total revenue for Expand Energy WRT C saw a dramatic 103.1% increase, reaching $2.20 billion in 2025 Q1, compared to $1.08 billion in 2024 Q1. This growth was driven by the natural gas, oil, and NGL segment, which contributed $2.30 billion. The marketing segment added $910 million, while derivatives presented a loss of $1.01 billion. Consolidated, these figures culminated in the total revenue and other streams of $2.20 billion.

Earnings/Net Income
Expand Energy WRT C experienced a downturn, with earnings per share moving from a profit of $0.20 in 2024 Q1 to a loss of $1.06 in 2025 Q1, representing a 630% negative change. The company reported a net loss of $249 million in 2025 Q1, a stark deterioration of 1057.7% from the $26 million net income in 2024 Q1. The EPS performance is poor, reflecting operational and market challenges.

Price Action
The stock price of Expand Energy WRT C remained flat during the latest trading day but rose by 0.85% over the most recent full trading week. However, it has seen a decline of 6.26% month-to-date.

Post Earnings Price Action Review
The earnings report metrics have shown a mixed impact on the C stock price, with backtesting indicating potential for positive movements in the short to medium term post-earnings. The revenue win rates suggest a moderate probability of positive short-term price movement, with a 3-Day win rate of 52.79%, increasing to 55.26% over 30 days. Net income and EPS show similar trends, with respective 30-Day win rates of 54.68% and 55.26%. While historical trends indicate potential gains, they do not guarantee future performance, and investors should also consider broader market conditions and company performance when making decisions.

CEO Commentary
“Overcoming market volatility requires a resilient financial foundation, a deep market-connected portfolio, and low-cost, efficient operations, all hallmarks of our strategy,” said Nick Dell’Osso, President and Chief Executive Officer of Expand Energy. He emphasized the company's focus on utilizing productive capacity to navigate the dynamic macro environment and prepare for efficient responses to changing market conditions. The CEO highlighted the successful addition to the S&P 500 and the upgrade to an Investment Grade credit rating by Moody’s, indicating strong market positioning and operational execution that support the company's growth initiatives.

Guidance
Expand Energy expects to run approximately 12 rigs and invest around $2.7 billion in 2025, targeting an estimated daily production of approximately 7.1 Bcfe/d. The Company anticipates capturing about $400 million in annual synergies, with a total target of $500 million in synergies expected by the end of 2026. The quarterly base dividend of $0.575 per share will be paid in June 2025, marking the 17th consecutive quarter of dividend payments.

Additional News
Expand Energy recently announced plans to enhance its capital return framework in 2025, focusing on debt reduction and shareholder value. This includes allocating $500 million towards reducing net debt and generating additional free cash flow for variable dividends and share repurchases. Additionally, the company has been successfully integrated into the S&P 500, reflecting its strong market position. In leadership news, Expand Energy continues under the guidance of CEO Nick Dell’Osso, who has been instrumental in steering the company through recent market challenges and expansions.