8-KEarnings & ResultsRegulation FDOther Events+1

EXPAND ENERGY Corp 8-K Report, Financial Results (Jan 9, 2012)

Filed January 9, 2012For Securities:EXEEXEELEXEEWEXEEZ

Summary

EXPAND ENERGY Corp (EXE) has filed an 8-K report detailing several significant announcements made between January 3rd and January 9th, 2012. The most impactful event for investors is the completion of a joint venture in the Utica Shale with Total E&P USA, Inc. ("Total"). Under this agreement, Total acquired a 25% interest in approximately 619,000 net acres, a significant portion of which was contributed by EXE. This transaction provides EXE with substantial capital, including immediate cash and a future drilling carry, which is expected to aid in its long-term debt reduction goals. The filing also includes preliminary 2011 operational results and sets the stage for the release of the Company's fourth quarter and full-year 2011 financial results and the associated conference call.

Key Highlights

  • 1Completion of a joint venture with Total E&P USA, Inc. for Utica Shale acreage.
  • 2Total acquired a 25% interest in approximately 619,000 net acres in the Utica Shale.
  • 3EXPAND ENERGY Corp received approximately $2.03 billion in combined value from the joint venture.
  • 4The transaction includes $610 million in cash at closing and $1.42 billion via a drilling and completion cost carry expected by year-end 2014.
  • 5This joint venture is expected to contribute to the Company's long-term debt reduction goals outlined in its 30/25 Plan.
  • 6Announcement of preliminary 2011 operational results, indicating progress on production and debt reduction targets.
  • 7Notification of the date for the release of Q4 and full-year 2011 financial and operational results, along with conference call details.

Frequently Asked Questions

The joint venture is highly significant as it brings substantial capital into the company through immediate cash and a future drilling cost carry. This is expected to strengthen EXE's financial position and help it achieve its strategic debt reduction targets.

EXPAND ENERGY Corp received approximately $2.03 billion in combined value. This includes $610 million in cash paid at closing and an estimated $1.42 billion that will be provided as a drilling and completion cost carry, anticipated to be fully received by the end of 2014.

The company announced on January 9, 2012, the date it would issue its 2011 fourth quarter and full year financial and operational results. The specific date of this release is not detailed in this 8-K filing, but the announcement itself is a key event.

This 8-K filing primarily announces events and provides preliminary operational results. The detailed financial and operational results for the full year 2011 and the fourth quarter will be released separately on a date announced by the company, with access details for a conference call also provided.