Summary
EXPAND ENERGY Corp (EXE) filed an amended quarterly report (10-Q/A) for the period ending March 31, 2010, showing a significant turnaround from the previous year. The company reported net income attributable to Chesapeake of $738 million for the first quarter of 2010, a substantial improvement from a net loss of $5,740 million in the same period of 2009. This dramatic shift was largely due to a significant non-cash impairment charge of approximately $6.0 billion recorded in the prior year's first quarter, which did not recur in 2010. Revenues also saw a strong increase, reaching $2.798 billion in Q1 2010, up from $1.995 billion in Q1 2009. This growth was driven by higher natural gas and oil sales, coupled with increased marketing, gathering, and compression services. The company's production volumes also increased year-over-year. While operating costs rose, the substantial improvement in revenue and the absence of large impairment charges led to significant profitability in the current quarter.
Financial Highlights
46 data points| Revenue | $2.80B |
| Gross Profit | $1.21B |
| Operating Expenses | $1.59B |
| Operating Income | $1.21B |
| Interest Expense | $192.00M |
| Net Income | $738.00M |
| EPS (Basic) | $1.16 |
| EPS (Diluted) | $1.14 |
| Shares Outstanding (Basic) | 630.00M |
| Shares Outstanding (Diluted) | 647.00M |
Key Highlights
- 1Net income attributable to Chesapeake rebounded to $738 million in Q1 2010 from a net loss of $5.74 billion in Q1 2009, primarily due to the absence of a large impairment charge that impacted the prior year.
- 2Total revenues increased by approximately 40% to $2.798 billion in Q1 2010, compared to $1.995 billion in Q1 2009.
- 3Production volumes saw an increase, with natural gas production at 209.6 bcf and oil at 3.9 mmbbls in Q1 2010, up from 195.7 bcf and 2.9 mmbbls respectively in Q1 2009.
- 4The company's average realized price for natural gas (excluding derivatives) increased to $4.50/mcf and for oil to $62.59/bbl in Q1 2010, compared to $3.44/mcf and $35.99/bbl in Q1 2009.
- 5Cash provided by operating activities was strong at $1.183 billion in Q1 2010, slightly down from $1.261 billion in Q1 2009, indicating healthy operational cash generation.
- 6The company announced a strategic and financial plan on May 10, 2010, aimed at increasing shareholder value, reducing debt, and achieving an investment grade rating, including potential sales of equity interests in subsidiaries and monetizations of midstream assets.
- 7The company reported significant joint venture activity, including a $2.25 billion Barnett Shale joint venture with Total E&P USA, Inc. and a Marcellus Shale transaction with Statoil.