Expand Energy EXE · USD

18.Segment InformationOperating segments are defined as components of an enterprise that engage in activities from which it may earn revenues and incur expenses for which separate operational financial information is available and is regularly evaluated by the CODM, who is our Chief Executive Officer, for the purpose of allocating an enterprise’s resources and assessing its operating performance. Our revenues are derived from the production, marketing and sale of natural gas, oil and NGL. Additional information on our revenues, including the disaggregation of our revenues and major customers, is found in Note 8. As of December 31, 2025, we considered each of our operating areas as operating segments, however, we have aggregated those operating segments into one reportable segment due to the similar nature of the exploration and production business across Expand Energy and its consolidated subsidiaries and the fact that our marketing activities are ancillary to our operations.Our CODM uses consolidated net income (loss), for purposes of allocating resources and in assessing Expand Energy’s operating performance, which also includes analyzing results to forecasted information. Additionally, our CODM is regularly provided information on production expense, gathering, processing and transportation expense, severance and ad valorem taxes and general and administrative expense, which are our significant segment expenses. Other segment items primarily consist of depreciation, depletion and amortization, marketing expense, interest expense and income tax expense (benefit). Our significant segment expenses and other segment items are derived from, and can be found within the consolidated statements of operations.The measure of segment assets is total assets as reported on our consolidated balance sheets, and as of December 31, 2025 and 2024 our total assets were $28,287 million and $27,894 million, respectively. Additionally, in analyzing company performance, our CODM reviews capital expenditures. During the years ended December 31, 2025, 2024 and 2023, our capital expenditures were $2,852 million, $1,529 million and $1,782 million, respectively.

8.RevenueThe following tables show revenue disaggregated by operating area and product type, for the periods presented:Year Ended December 31, 2025Natural GasOilNGLTotalHaynesville$3,477 $— $— $3,477 Northeast Appalachia2,860 — — 2,860 Southwest Appalachia1,096 319 724 2,139 Natural gas, oil and NGL revenue$7,433 $319 $724 $8,476 Marketing revenue$2,889 $132 $142 $3,163 Year Ended December 31, 2024Natural GasOilNGLTotalHaynesville$1,205 $— $— $1,205 Northeast Appalachia1,242 — — 1,242 Southwest Appalachia239 69 214 522 Natural gas, oil and NGL revenue$2,686 $69 $214 $2,969 Marketing revenue$1,095 $116 $79 $1,290 Year Ended December 31, 2023Natural GasOilNGLTotalHaynesville$1,300 $— $— $1,300 Northeast Appalachia1,483 — — 1,483 Eagle Ford70 596 98 764 Natural gas, oil and NGL revenue$2,853 $596 $98 $3,547 Marketing revenue$989 $1,332 $179 $2,500 Major CustomersFor the year ended December 31, 2025, we had sales to one purchaser that accounted for 11% of our total revenues (before the effects of hedging). For the year ended December 31, 2024, we had no purchaser that accounted for 10% or greater of our total revenues (before the effects of hedging). For the year ended December 31, 2023, we had sales to two purchasers that accounted for approximately 17% and 10% of total revenues (before the effects of hedging). No other purchasers accounted for more than 10% of our total revenues during the years ended December 31, 2025 or 2023.

5.Contingencies and CommitmentsContingenciesBusiness Operations and Litigation and Regulatory ProceedingsWe are involved in, and expect to continue to be involved in, various lawsuits and disputes incidental to our business operations, including commercial disputes, personal injury claims, royalty claims, property damage claims and contract actions. We are also party to the consolidated Chapter 11 Cases pending for the Debtors in the Bankruptcy Court.Our total accrued liability in respect of litigation and regulatory proceedings is determined on a case-by-case basis and represents an estimate of probable losses after considering, among other factors, the progress of each case or proceeding, our experience and the experience of others in similar cases or proceedings, and the opinions and views of legal counsel. Significant judgment is required in making these estimates. While it is not possible at this time to estimate the amount of any additional loss, or range of loss that is reasonably possible, based on the nature of the claims, management believes that current litigation, claims and proceedings, individually or in aggregate and after taking into account insurance, are not likely to have a material adverse impact on our financial position, results of operations or cash flows. Many of these matters are in early stages and are all subject to inherent uncertainties. Therefore, management’s view may change in the future. If an unfavorable final outcome were to occur, there exists the possibility of our final liabilities being materially different.The majority of Chesapeake’s pre-petition legal proceedings were settled during the Chapter 11 Cases or will be resolved in connection with the claims reconciliation process before the Bankruptcy Court, together with actions seeking to collect pre-petition indebtedness or to exercise control over the property of Chesapeake’s bankruptcy estates. Any allowed claim related to such litigation will be treated in accordance with the Plan. The Plan in the Chapter 11 Cases, which became effective on February 9, 2021, provided for the treatment of claims against Chesapeake’s bankruptcy estates, including pre-petition liabilities that had not been satisfied or addressed during the Chapter 11 Cases. Many of these proceedings were in early stages as of the Petition Date, and many of them sought damages and penalties, the amount of which is indeterminate.

4.DebtOur long-term debt consisted of the following as of December 31, 2025 and 2024:December 31, 2025December 31, 2024Carrying AmountFair Value(a)Carrying AmountFair Value(a)2025 Credit Facility$— $— $— $— Prior Credit Facility— — — — 4.95% senior notes due 2025(b)— — 389 389 5.50% senior notes due 2026— — 47 47 5.375% senior notes due 2029(b)638 639 700 684 5.875% senior notes due 2029440 441 500 494 6.75% senior notes due 2029847 852 950 959 5.375% senior notes due 2030(b)1,200 1,218 1,200 1,174 4.75% senior notes due 2032(b)1,150 1,137 1,150 1,067 5.70% senior notes due 2035(c)750 776 750 734 Premiums (discounts) on senior notes, net(8)— 4 — Debt issuance costs(8)— (10)— Total debt, net5,009 5,063 5,680 5,548 Less current maturities of long-term debt, net— — (389)(389)Total long-term debt, net$5,009 $5,063 $5,291 $5,159 ____________________________________________(a)The carrying value of borrowings under our 2025 Credit Facility and Prior Credit Facility approximates fair value as the interest rates are based on prevailing market rates; therefore, they are a Level 1 fair value measurement. For all other debt, a market approach, based upon quotes from major financial institutions, which are Level 2 inputs, is used to measure the fair value.(b)On October 1, 2024, we assumed the debt of Southwestern in connection with the Southwestern Merger, which primarily consisted of these senior notes. See Note 2 for additional discussion on the Southwestern Merger and further discussion of these senior notes below.(c)On December 2, 2024, we issued $750 million of 5.70% senior notes. See further discussion below.The table below presents debt maturities as of December 31, 2025, excluding debt issuance costs, discounts and premiums:Total20291,925 20301,200 Thereafter1,900 Total debt$5,025 Credit Facility. On September 30, 2025, the Company entered into an Amended and Restated Credit Agreement (the “Credit Agreement”) that, as amended, has a maturity date of September 30, 2030 (the “2025 Credit Facility”), with the lenders and issuing banks party thereto from time to time (the “Lenders”), and JPMorgan Chase Bank, N.A., as administrative agent. The 2025 Credit Facility, among other things, extended the maturity date from December 2027 to September 2030, with two one-year extension options available, each subject to the Lenders’ consent, increased the aggregate commitments under the 2025 Credit Facility from $2.5 billion to $3.

9.Income TaxesThe components of the income tax expense (benefit) for each of the periods presented below are as follows:Years Ended December 31,202520242023Current Tax Expense (Benefit)US Federal$8 $(1)$264 US State and Local7 (3)6 Total Current Tax Expense (Benefit)15 (4)270 Deferred Tax Expense (Benefit)US Federal410 (178)381 US State and Local38 55 47 Total Deferred Tax Expense (Benefit)448 (123)428 Total Income Tax Expense (Benefit)US Federal418 (179)645 US State and Local45 52 53 Total Income Tax Expense (Benefit)$463 $(127)$698 The income tax expense (benefit) reported in our consolidated statement of operations is different from the federal income tax expense (benefit) computed using the federal statutory rate for the following reasons:Years Ended December 31,202520242023U.S. Federal Statutory Tax Rate$479 21.0 %$(177)21.0 %$655 21.0 %State and Local Income Taxes, Net of Federal Income Tax Effect(a)42 1.8 %29 (3.4)%51 1.6 %Tax creditsResearch and development tax credits(46)(2.0)%(32)3.8 %(10)(0.3)%Changes in Valuation Allowances11 0.5 %9 (1.1)%(28)(0.9)%Nontaxable or nondeductible itemsMerger Related Costs(21)(0.9)%33 (3.9)%— — %Other3 0.1 %1 (0.1)%3 0.1 %Changes in Unrecognized Tax Benefits— — %— — %6 0.2 %Other adjustmentsReturn to provision(35)(1.5)%— — %(16)(0.5)%Capital loss expirations30 1.3 %5 (0.6)%26 0.8 %Other— — %5 (0.6)%11 0.4 %Effective Tax Rate$463 20.3 %$(127)15.1 %$698 22.4 %_________________________________________(a)State taxes in Louisiana, Pennsylvania and West Virginia made up the majority (greater than 50 percent) of the tax effect in this category. In 2025, the Company’s overall effective tax rate increased compared to 2024 due to the prior year’s deferred remeasurement due to Louisiana law change and also the impact of the merger costs. Due to the prior year pre-tax loss, these items caused the effective tax rate to be lower than the statutory national rate. The Company’s effective tax rate in 2024 decreased from 2023 due to the aforementioned remeasurement due to Louisiana’s law change. The return to provision adjustment in 2025 includes the impact of tax basis and attribute true ups from filing the final Southwestern tax returns during the year.Deferred income taxes are provided to reflect temporary differences in the tax basis of assets and liabilities and their reported amounts in the financial statements.

11.Share-Based CompensationOur long-term incentive plan, as amended and adopted by our Board of Directors (the “LTIP”), provides for the grant of restricted stock units (“RSUs”), restricted stock awards, stock options, stock appreciation rights, performance awards and other stock awards to the Company’s employees and non-employee directors and has a share reserve equal to 6,800,000 shares of common stock.Restricted Stock Units. During the years ended December 31, 2025, 2024 and 2023, we granted RSUs to employees and non-employee directors under the LTIP, which will vest over a three-year to five-year period and one-year period, respectively. The fair value of RSUs is based on the closing sales price of our common stock on the date of grant, and compensation expense is recognized ratably over the requisite service period. A summary of the changes in unvested RSUs is presented below: UnvestedRestricted Stock UnitsWeighted AverageGrant DateFair Value Per Share(in thousands)Unvested as of December 31, 2022957 $68.91 Granted440 $72.25 Vested(329)$61.66 Forfeited(128)$68.42 Unvested as of December 31, 2023940 $73.08 Granted (a)962 $83.09 Vested (a)(925)$74.18 Forfeited(20)$77.71 Unvested as of December 31, 2024957 $81.99 Granted557 $103.38 Vested(520)$80.52 Forfeited(37)$98.24 Unvested as of December 31, 2025957 $94.61 _________________________________________(a)During the year ended December 31, 2024, approximately 5.2 million Southwestern RSUs were converted to 478 thousand Company RSUs, of which approximately 384 thousand RSUs were accelerated. We recognized the accelerated share-based compensation expense related to these awards in other operating expense, net on our consolidated statements of operations. Additionally, approximately 105 thousand RSUs were accelerated related to one-time termination benefits for certain employees.The aggregate intrinsic value of RSUs that vested during the years ended December 31, 2025, 2024 and 2023 was approximately $58 million, $77 million and $25 million, respectively, based on the stock price at the time of vesting. As of December 31, 2025, there was approximately $58 million of total unrecognized compensation expense related to unvested RSUs. The expense is expected to be recognized over a weighted average period of approximately 1.93 years.Performance Share Units.

7.LeasesWe are a lessee under various agreements for drilling rigs, pressure pumping equipment, vehicles, office space, compressors and other equipment under non-cancelable operating leases expiring through 2036. Certain of our lease agreements include options to renew the lease, terminate the lease early or purchase the underlying asset at the end of the lease. We determine the lease term at the lease commencement date as the non-cancelable period of the lease, including options to extend or terminate the lease when we are reasonably certain to exercise the option. The Company’s vehicles are the only leases with renewal options that we are reasonably certain to exercise. The renewals are reflected in the right of use (“ROU”) asset and lease liability balances. Regarding our drilling rigs and pressure pumping equipment, our policy is to treat both lease and non-lease components as a single lease component.Our operating ROU assets are included in other long-term assets while operating lease liabilities are included in other current and other long-term liabilities on the consolidated balance sheets. Our total lease costs are recognized within proved natural gas and oil properties, production expenses and general and administrative expenses within our consolidated financial statements.The following table presents our ROU assets and lease liabilities as of December 31, 2025 and 2024. As of December 31, 2025 and 2024, we did not have any finance leases.Operating Leases December 31, 2025December 31, 2024ROU assets$99 $145 Lease liabilities:Current lease liabilities$51 $71 Long-term lease liabilities48 74 Total lease liabilities, net$99 $145 Additional information for the Company’s operating leases is presented below:Years Ended December 31, 202520242023Lease cost:Operating lease cost$91 $88 $107 Short-term lease cost45 62 40 Total lease cost$136 $150 $147 Other information:Operating cash outflows from operating leases$32 $13 $10 Investing cash outflows from operating leases$104 $137 $137 December 31, 2025December 31, 2024Weighted average remaining lease term - operating leases2.49 years3.03 yearsWeighted average discount rate - operating leases5.77 %5.

We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of our critical systems and information.We design and assess our cybersecurity risk management program guided by the NIST Cybersecurity Framework to help us identify, assess and manage cybersecurity risks relevant to our business.Our cybersecurity risk management program is integrated into our overall enterprise risk management program, and shares common methodologies, reporting channels and governance processes that apply across the enterprise risk management program to other legal, compliance, strategic, operational, and financial risk areas.Our cybersecurity risk management program includes, but is not limited to, the following key elements:•risk assessments designed to help identify and address material cybersecurity risks to our critical systems and information;•a security team principally responsible for managing our cybersecurity risk assessment processes, our security controls, and our response to cybersecurity incidents;•the use of external service providers, where appropriate, to assess, test or otherwise assist with aspects of our security processes;•systems for protecting information technology systems and monitoring for suspicious events, such as threat protection, firewall and anti-virus software;•cybersecurity awareness training for our employees and contractors; •a cybersecurity incident response plan that includes procedures for responding to, escalating, and reporting cybersecurity incidents; and•a third-party risk management process for service providers, suppliers, software, and vendors who access our data and/or systems.We have not identified risks from known cybersecurity threats, including as a result of any prior cybersecurity incidents, that have materially affected us, including our business strategy, results of operations, or financial condition. We face certain ongoing risks from cybersecurity threats that, if realized, are reasonably likely to materially affect us, including our business strategy, results of operations, or financial condition. See Item 1A. Risk Factors “Cyber-attacks targeting systems and infrastructure used by the gas and oil industry and related regulations may adversely impact our operations and, if we or our third-party providers are unable to obtain and maintain adequate protection for our key systems and data, our business may be harmed.