Company: EXEEZ
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000895126-25-000098
Chunk: 53

Company: EXPAND ENERGY Corp
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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1,082 DD&A per Mcfe$1.10 $1.38 $1.14 $1.38 

The absolute increase in depreciation, depletion and amortization for the Current Quarter and Current Period compared to the Prior Quarter and Prior Period is primarily related to the Southwestern Merger. Depreciation, 

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depletion and amortization 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.

Other Operating Expense (Income), Net

Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Other operating expense (income), net$(37)$22 $23 $55 

During the Current Quarter, other operating expense (income), net included favorable legal settlements of approximately $40 million. During the Prior Quarter, we recognized approximately $17 million of costs related to the Southwestern Merger, which included legal fees, consulting fees and financial advisory fees.

During the Current Period and Prior Period, we recognized approximately $53 million and $43 million, respectively, of costs related to the Southwestern Merger, which included employee expenses, legal fees, consulting fees and financial advisory fees. Additionally, during the Current Period, other operating expense (income), net included favorable legal settlements of approximately $40 million.

Interest Expense

Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Interest expense on debt$72 $34 $223 $98 Amortization of premium, discount, issuance costs and other2 (3)4 (8)Capitalized interest(17)(11)(51)(31)Total interest expense$57 $20 $176 $59 

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