Company: EXEEZ
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000895126-25-000053
Chunk: 32

Company: EXPAND ENERGY Corp
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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ting:Gross Fair Value(a)Amounts Netted in the Condensed Consolidated Balance SheetsNet Fair Value Presented in the Condensed Consolidated Balance SheetsAs of March 31, 2025Commodity Contracts:Short-term derivative asset$39 $(39)$— Long-term derivative asset18 (16)2 Short-term derivative liability(935)39 (896)Long-term derivative liability(145)16 (129)Total derivatives$(1,023)$— $(1,023)As of December 31, 2024Commodity Contracts:Short-term derivative asset$191 $(107)$84 Long-term derivative asset6 (5)1 Short-term derivative liability(178)107 (71)Long-term derivative liability(73)5 (68)Total derivatives$(54)$— $(54)___________________________________________(a)These financial assets (liabilities) are measured at fair value on a recurring basis utilizing significant other observable inputs; see further discussion on fair value measurements below. 

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Table of ContentsEXPAND ENERGY CORPORATION AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(Unaudited)

Fair ValueThe fair value of our commodity derivatives is based on third-party pricing models, which utilize inputs that are either readily available in the public market, such as natural gas, oil and NGL forward curves and discount rates, or can be corroborated from active markets or broker quotes, and, as such, are classified as Level 2. These values are compared to the values given by our counterparties for reasonableness. Derivatives are also subject to the risk that either party to a contract will be unable to meet its obligations. We factor non-performance risk into the valuation of our derivatives using current published credit default swap rates. To date, this has not had a material impact on the values of our derivatives. Credit Risk ConsiderationsOur derivative instruments expose us to our counterparties’ credit risk. To mitigate this risk, we only enter into commodity contracts derivatives with counterparties that are highly rated or deemed by us to have acceptable credit strength and deemed by management to be competent and competitive market-makers, and we attempt to limit our exposure to non-performance by any single counterparty. As of March 31, 2025, our commodity contracts derivative instruments were spread among 20 counterparties.Hedging ArrangementsCertain of our hedging arrangements are with counterparties that are also