Company: EXEEZ
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000895126-25-000098
Chunk: 22

Company: EXPAND ENERGY Corp
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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 Southwestern Merger was structured as a tax-free reorganization for United States federal income tax purposes.Southwestern Merger Purchase Price AllocationWe have accounted for the Southwestern Merger as a business combination, using the acquisition method, with Expand Energy (formerly Chesapeake) treated as the accounting acquirer. During the Current Quarter, we finalized the acquisition accounting for this transaction. The following table represents the allocation of the total purchase price of Southwestern to the identifiable assets acquired and the liabilities assumed based on the fair values as of the acquisition date.

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

Purchase Price AllocationConsideration:Cash(a)$585 Fair value of Expand Energy common stock issued(b)7,871 Restricted stock unit and performance stock unit replacement awards17 Total consideration$8,473 Fair Value of Assets Acquired:Cash and cash equivalents and restricted cash$126 Other current assets828 Proved natural gas and oil properties10,002 Unproved properties4,270 Other property and equipment128 Other long-term assets496 Amounts attributable to assets acquired$15,850 Fair Value of Liabilities Assumed:Current liabilities$1,955 Long-term debt3,305 Deferred tax liabilities479 Long-term contract liabilities1,287 Other long-term liabilities351 Amounts attributable to liabilities assumed$7,377 Total identifiable net assets$8,473 ____________________________________________(a)Reflects the repayment of $585 million outstanding on Southwestern's 2022 revolving credit facility including $2 million of accrued interest and fees, as the facility was repaid and retired upon close of the Southwestern Merger.(b)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 PropertiesFor the Southwestern Merger, 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