Company: EXEEZ
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000895126-25-000053
Chunk: 44

Company: EXPAND ENERGY Corp
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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GL derivatives$(1,014)$172 

See Note 11 of the notes to our condensed consolidated financial statements included in Item 1 of Part I of this report for a discussion of our derivative activity.

General and Administrative Expenses

Three Months Ended March 31,20252024Total G&A, net$47 $47 G&A, net per Mcfe$0.08 $0.16 

Total general and administrative expenses, net during the Current Quarter was in line with the Prior Quarter as the increase in employee compensation and benefits, as a result of the Southwestern Merger, was offset by a corresponding increase in allocations and reimbursements due to increased drilling and production activity. The per unit decrease in total general and administrative expenses, net during the Current Quarter is due to increased production volumes as a result of the Southwestern Merger. 

Depreciation, Depletion and Amortization 

Three Months Ended March 31,20252024DD&A$711 $399 DD&A per Mcfe$1.16 $1.37 

The absolute increase in depreciation, depletion and amortization for the Current Quarter compared to the Prior Quarter is primarily related to the Southwestern Merger. Depreciation, depletion and amortization per Mcfe decreased during the Current Quarter compared to the Prior Quarter due to lower depletion rates on wells acquired in the Southwestern Merger.

Other Operating Expense, Net

Three Months Ended March 31,20252024Other operating expense, net$22 $17 

During the Current Quarter and Prior Quarter, we recognized approximately $27 million and $11 million, respectively, of costs related to the Southwestern Merger, which included employee expenses, legal fees, consulting fees and financial advisory fees.

31

Interest Expense

Three Months Ended March 31,20252024Interest expense on debt$77 $32 Amortization of premium, discount, issuance costs and other— (2)Capitalized interest(18)(11)Total interest expense$59 $19 

The increase in total interest expense during the Current Quarter compared to the Prior Quarter 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 compared to the Prior Quarter 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