Company: EXEEZ
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0000895126-25-000084
Chunk: 53

Company: EXPAND ENERGY Corp
Filing Date: 2025-07-29
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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 per Mcfe decreased during the Current Quarter and Current Period compared to the Prior Quarter and Prior Period due to lower depletion rates on wells acquired in the Southwestern Merger.

34

Other Operating Expense, Net

Three Months Ended June 30,Six Months Ended June 30,2025202420252024Other operating expense, net$38 $16 $60 $33 

During the Current Quarter and Prior Quarter, we recognized approximately $25 million and $15 million, respectively, of costs related to the Southwestern Merger, which included employee expenses, legal fees, consulting fees and financial advisory fees.

During the Current Period and Prior Period, we recognized approximately $52 million and $26 million, respectively, of costs related to the Southwestern Merger, which included employee expenses, legal fees, consulting fees and financial advisory fees.

Interest Expense

Three Months Ended June 30,Six Months Ended June 30,2025202420252024Interest expense on debt$74 $32 $151 $64 Amortization of premium, discount, issuance costs and other2 (3)2 (5)Capitalized interest(16)(9)(34)(20)Total interest expense$60 $20 $119 $39 

The increase in total interest expense during the Current Quarter and Current Period compared to the Prior Quarter and Prior Period was primarily due to our assumption of Southwestern’s Senior Notes as a result of the Southwestern Merger, which resulted in an increase in interest expense on debt. Capitalized interest increased during the Current Quarter and Current Period compared to the Prior Quarter and Prior Period primarily as a result of increased capital activity following the completion of the Southwestern Merger. 

See Note 4 of the notes to our condensed consolidated financial statements included in Item 1 of Part I of this report for additional discussion.

Income Taxes

The projected full year current and deferred taxes are allocated to the Current Period based on the proportion of year-to-date pre-tax book income to the projected full year pre-tax book income. As a result, an income tax expense of $190 million was recorded for the Current Period. Of this amount, $56 million was related to current taxes and $134 million was related to deferred taxes. An income tax benefit of $61 million was recorded for the Prior Period. That amount was entirely related to projections of deferred federal and state income taxes. Our effective income tax rate was 20.9% and 23.3% during the