Company: EXEEZ
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000895126-25-000021
Chunk: 45

Company: EXPAND ENERGY Corp
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 45
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 the acquisition date. Purchase Price AllocationConsideration:Cash$2,000 Fair value of common stock issued in the merger (a)764 Working capital adjustments6 Total consideration$2,770 Fair Value of Liabilities Assumed:Current liabilities$459 Other long-term liabilities129 Amounts attributable to liabilities assumed$588 Fair Value of Assets Acquired:Cash, cash equivalents and restricted cash$39 Other current assets218 Proved natural gas and oil properties2,309 Unproved properties788 Other property and equipment1 Other long-term assets3 Amounts attributable to assets acquired$3,358 Total identifiable net assets$2,770 ____________________________________________(a)The fair value of our common stock is a Level 1 input, as our stock price is a quoted price in an active market as of the acquisition date. Natural Gas and Oil Properties For the Marcellus Acquisition, we applied the business combination guidance, under which an acquirer should recognize the identifiable assets acquired and the liabilities assumed on the acquisition date at fair value. The fair value estimate of proved and unproved natural gas and oil properties as of the acquisition date was based on estimated natural gas and oil reserves and related future net cash flows discounted using a weighted average cost of capital, including estimates of future production rates and future development costs. We utilized NYMEX strip pricing adjusted for inflation to value the reserves. We then applied various discount rates depending on the classification of reserves and other risk characteristics. Management utilized the assistance of a third-party valuation expert to estimate the value of the natural gas and oil properties acquired. Additionally, the fair value estimate of proved and unproved natural gas and oil properties was corroborated by utilizing a market approach, which considers recent comparable transactions for similar assets.The inputs used to value natural gas and oil properties require significant judgment and estimates made by management and represent Level 3 inputs.Marcellus Acquisition Revenues and Expenses Subsequent to AcquisitionWe included in our consolidated statements of operations natural gas, oil and NGL revenues of $1,331 million, marketing revenues of $20 million, net losses on natural gas, oil and NGL derivatives of $379 million, and direct operating expenses of $483 million, including depreciation, depletion and amortization, and net earnings of 

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TABLE OF CONTENTSEXPAND ENERGY CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

$381 million, related to the Marcellus