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.

• Forecasted 2026 capital expenditures inclusive of capitalized interest are $2.75 - $2.95 billion, compared to 2025 capital spending of $2.85 billion.
• Approximately $4.2 billion of capital expenditures planned during the next five years to convert proved undeveloped reserves into proved developed reserves.
• Approximately 28% of estimated proved reserves (by volume) were undeveloped as of December 31, 2025.December 31, 2025
• December 31, 2025 present value based on $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
• Entered into an agreement in Q4 2022 with Momentum Sustainable Ventures LLC to build the New Generation Gas Gathering (NG3) pipeline, a natural gas gathering and carbon capture project in the Haynesville Shale.Q4 2022
• NG3 pipeline was placed in service on October 1, 2025 and began gathering operations.October 1, 2025
• Gathering agreement requires approximately 900 MMcf per day on average of natural gas to be gathered and processed by NG3 over the next 12 years.
• The Amended and Restated Credit Agreement dated September 30, 2025 requires a total indebtedness to capitalization ratio not to exceed 65%.September 30, 2025
• As of December 31, 2025, indebtedness was approximately $5.0 billion, including approximately $3.7 billion of Southwestern’s senior notes assumed in the Southwestern Merger during the year ended December 31, 2024.December 31, 2025
• $1,363 million of receivables as of December 31, 2025 from sales of natural gas, oil and NGL production to energy companies, end users and refineries.December 31, 2025
• In late February 2022, Russia launched a military invasion against Ukraine, causing volatility in natural gas, oil and NGL prices.February 2022
• The current armed conflict between Israel and Hamas.
• CIRCIA, signed into law March 15, 2022, mandates reporting cyber incidents to CISA within 72 hours and ransomware payments within 24 hours, with final rule expected May 2026.March 15, 2022
• CISA issued notice of proposed rulemaking on April 4, 2024.April 4, 2024
• Subject to the California Consumer Privacy Act (CCPA) effective January 2020 and the California Privacy Rights Act (CPRA) effective January 2023 with a lookback period beginning January 2022.January 2020
• PHMSA final rule issued in November 2021 expanded federal pipeline safety requirements to all onshore gas gathering pipelines regardless of size or location, effective May 16, 2022.November 2021
• January 2025 PHMSA finalized rule requiring pipelines, underground natural gas storage, and LNG facilities to update leak detection and repair programs using commercially available technologies, but an Executive Order directing withdrawal of unpublished rules prevented publication.January 2025
• Proposed bill H.R. 4818 in July 2025 would codify the January 2025 PHMSA rule but has not passed.July 2025
• Supreme Court decision in Loper Bright v. Raimondo overruled Chevron deference, adding complexity for federal agencies on climate change policy.
• The U.S. Department of Interior issued memo M-37085 in April 2025, repealing M-37065 and restoring M-37050 to clarify that only intentional 'take' of migratory birds is prohibited.April 2025
• In April 2025, the FWS and National Marine Fisheries Service proposed to redefine 'harm' to exclude acts that indirectly cause injury.April 2025
• In November 2025, the Presidential Administration proposed rules that would rescind automatic extension of protections to threatened species, change listing and critical habitat regulations, and reinstate a cost-benefit framework for critical habitat designation; final rules expected in 2026.November 2025
• In January 2023, the EPA and the Corps issued a final rule defining WOTUS based on a pre-2015 definition, which never took effect.January 2023
• The U.S. Supreme Court's decision in Sackett v. EPA in May 2023 narrowed federal jurisdiction over wetlands to those with a continuous surface connection to traditional navigable waters.May 2023
• In September 2023, the EPA and the Corps published a direct-to-final rule conforming WOTUS to the Sackett decision, but roughly half of the states are challenging the rule.September 2023
• In 2021, the U.S. Supreme Court held that the CWA requires a permit if pollutant addition through groundwater is the functional equivalent of a direct discharge.2021
• In November 2023, the EPA issued draft guidance on determining which discharges through groundwater may require a permit.November 2023
• In January 2025, the Presidential Administration issued Executive Orders directing the EPA and Corps to identify actions subject to emergency treatment under CWA Section 404 and to suspend or revise burdensome regulations on domestic energy.January 2025
• In November 2025, the Corps and the EPA proposed a rule revising the definition of WOTUS, including terms 'relatively permanent,' 'tributary,' and 'continuous surface connection'; final rule expected in early 2026 with likely litigation.November 2025
• In January 2026, the EPA announced a proposed rule to revise Section 401 water quality certification regulations to narrow the scope of state and tribal certification to point source discharges.January 2026
• Subject to 15% corporate alternative minimum tax (CAMT) under the Inflation Reduction Act enacted August 16, 2022.August 16, 2022
• The completion of the Southwestern Merger in 2024 triggered an annual limitation under Section 382 of the Internal Revenue Code on the utilization of tax attributes.2024