Expand Energy raises 2026 capital budget to $3 billion

Expand Energy Corporation (EXE) said on Oct. 27 it now expects 2026 capital investment of about $3 billion, above the $2.75 billion to $2.95 billion range it gave on July 28.

Shares were little changed in after-hours trading as of 5:07 p.m. ET, from a regular-session close of $94.61.

The natural gas producer released its third-quarter 2026 results the same day in a press release furnished to the Securities and Exchange Commission. The company produces gas in the Haynesville, Northeast Appalachia and Southwest Appalachia.

Here's how the company did:

• Adjusted EPS: $1.46 vs. $0.97 a year earlier
• GAAP diluted EPS: $2.24 vs. $2.28 a year earlier
• Total revenues and other: $3,286 million vs. $2,966 million a year earlier
• Net income: $519 million vs. $547 million a year earlier

Adjusted EBITDAX, a measure the company uses to show its ability to fund exploration and development, was $1,229 million, up from $1,082 million a year earlier. Adjusted net income was $338 million, up from $234 million. Net income was $519 million, down from $547 million.

2026 guidance

The company expects to run 11 to 12 rigs for 2026, the same range it gave in July. Average daily production is now expected at 7.45 to 7.55 Bcfe/d, narrowed from the 7.4 to 7.6 Bcfe/d range it gave on July 28.

The company said its capital investment guidance is now approximately $3 billion. A detailed breakdown of the 2026 outlook is in its supplemental slides.

Production and drilling

In the third quarter the company operated an average of 11 rigs, drilled 46 wells and turned 59 wells in line. Net production was 7.54 Bcfe/d, 92% natural gas.

That output included 6.9 Bcf/d of natural gas, 17 MBbls/d of oil and 87 MBbls/d of natural gas liquids.

Twin Eagle and marketing

The company completed its acquisition of Twin Eagle Holdings, N.A., LLC on Sept. 16. Its cash flow statement shows a business combination, net outflow of $1,395 million in the quarter.

Marketing adjusted EBITDA was $150 million for the nine months ended Sept. 30. The company expects $80 million of marketing EBITDA in the fourth quarter, which it attributed to the Twin Eagle acquisition.

President and Chief Executive Officer Danny Brown said: “With our diversified scale, investment-grade balance sheet and coast-to-coast customer access, Expand Energy is uniquely positioned to monetize the volatility we see in the gas market today, provide advantaged supply to premium markets and capitalize on the demand growth we expect in the future.”

Cash and capital returns

The company repurchased $305 million of common stock in the third quarter and about $900 million year to date, or 4% of shares outstanding. It has $1 billion of capacity left under its expanded authorization.

Total debt was $4.6 billion at quarter-end, with a net debt to adjusted EBITDAX ratio of 0.8x. The company plans to pay its quarterly base dividend of $0.575 per share on Dec. 3 to shareholders of record at the close of business on Nov. 12.

A conference call has been scheduled for 9 a.m. EDT on Oct. 28 to discuss the results and the 2026 outlook.