EXPAND ENERGY Corp (EXE) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that EXPAND ENERGY Corp surfaced in its latest filing.

• Entered into agreement with Momentum Sustainable Ventures LLC for the NG3 pipeline, a joint venture involving a new natural gas gathering pipeline and carbon capture project, in which we hold a 35% interest.
• NG3 pipeline placed in service on October 1, 2025, expected to gather and process approximately 900 MMcf per day of natural gas over the next 12 years.October 1, 2025
• Forecasted 2026 capital expenditures, inclusive of capitalized interest, are $2.75 - $2.95 billion, compared to 2025 capital spending level of $2.85 billion.2026
• Plans for capital expenditures to convert proved undeveloped reserves (PUDs) into proved developed reserves include approximately $4.2 billion over the next five years; as of December 31, 2025, approximately 28% of estimated proved reserves (by volume) were undeveloped.December 31, 2025
• Amended and Restated Credit Agreement dated September 30, 2025, requires compliance with a total indebtedness to capitalization ratio not to exceed 65%.September 30, 2025
• As of December 31, 2025, indebtedness was approximately $5.0 billion, of which approximately $3.7 billion consists of Southwestern’s senior notes assumed as a result of the Southwestern Merger.December 31, 2025
• Receivables from sale of natural gas, oil, and NGL production were $1,363 million as of December 31, 2025.December 31, 2025
• Completion of the Southwestern Merger in 2024 triggered a Section 382 Ownership Change, imposing an annual limitation on pre-2021 tax attributes; additional stock trading or issuances could cause a further Section 382 Ownership Change with a potentially more restrictive annual limitation.2024
• The Inflation Reduction Act (IRA) signed into law in August 2022 provides significant funding and incentives for low-carbon energy production and carbon capture; enacted a 15% corporate alternative minimum tax (CAMT) on adjusted financial statement income, to which we believe we are subject and will remain subject for the foreseeable future.August 16, 2022
• January 2025 Executive Orders withdrew the U.S. from the Paris Agreement, paused pending regulations, required review of recent final regulations and federal financial assurance, and rescinded prior Executive Orders supportive of low-carbon projects.January 2025
• In January 2025, the PHMSA finalized a rule requiring updated leak detection and repair programs using commercially available technologies to find and fix methane leaks, but an Executive Order directed withdrawal of all unpublished rules pending further review.January 2025
• In April 2025, the U.S. Department of Interior issued memo M-37085 repealing M-37065, restoring M-37050 which prohibits only intentional take of migratory birds.April 2025
• In April 2025, FWS and National Marine Fisheries Service proposed to redefine 'harm' to exclude indirect injury.April 2025
• In November 2025, the Presidential Administration proposed rules to alter ESA protections, including rescinding automatic extension of protections to threatened species, changing listing and critical habitat regulations, and reinstating cost-benefit framework for critical habitat designations.November 2025
• In November 2025, Corps and EPA proposed rule revising WOTUS definition to conform to Sackett v. EPA, with final rule expected in early 2026.November 2025
• In January 2026, EPA proposed rule to revise CWA Section 401 narrowing scope of state/tribal water quality certification to point source discharges.January 2026
• U.S. Fish and Wildlife Service expected to issue final ESA rules in 2026.2026
• The CCPA came into effect in January 2020, and the CPRA, which expands upon the CCPA, came into effect in January 2023 with a lookback period beginning January 2022.January 2020
• Supreme Court’s decision in Loper Bright Enterprises v. Raimondo overruled Chevron and ended general deference to regulatory agency interpretations.
• In May 2023, Supreme Court in Sackett v. EPA narrowed federal jurisdiction over wetlands to those with a continuous surface connection to traditional navigable waters.May 2023
• CISA issued notice of proposed rulemaking on April 4, 2024, for critical infrastructure reporting obligation under CIRCIA, with final rule expected May 2026; requires reporting cyber incidents within 72 hours and ransomware payments within 24 hours.April 4, 2024
• The armed conflict between Russia and Ukraine, the conflict between Israel and Hamas and potential spillover, instability in the Middle East and Venezuela, and changes in China-Taiwan relations could disrupt energy supplies and markets and increase commodity price volatility.
• The PHMSA issued a final rule in November 2021 expanding federal pipeline safety requirements to all onshore gas gathering pipelines, effective May 16, 2022.November 2021
• In November 2022, the EPA issued a supplemental proposed rule removing an emissions monitoring exemption for small wellhead-only sites and creating a third-party monitoring program to flag large emissions events.November 2022
• Proposed bill H.R. 4818 introduced in July 2025 would codify the January 2025 PHMSA rule but has not passed.July 2025
• December 31, 2025 present value of proved reserves is based on prices of $3.39 per Mcf of natural gas, $65.34 per bbl of oil and $65.34 per bbl of NGL, before basis differential adjustments.December 31, 2025