EXPAND ENERGY (EXE) risk factors, FY2024 10-K

Risks Related to Operating our Business

1. 01Financial Risks Related to our Business
2. 02Natural gas, oil and NGL prices fluctuate widely, and lower prices for an extended period of time are likely to have a material adverse effect on our business
3. 03Conservation measures and technological advances could reduce demand for natural gas and oil
4. 04Negative public perception regarding us or our industry could have an adverse effect on our operations
5. 05The gas and oil exploration and production industry is very competitive; some of our competitors have greater financial and other resources than we do, and there is competition to attract and retain talent and competition over access to certain industry equipment

Risks related to potential acquisitions or dispositions may adversely affect our business

1. 06If commodity prices fall or drilling efforts are unsuccessful, we may be required to record write-downs of the carrying value of our natural gas and oil properties
2. 07Significant capital expenditures are required to replace our reserves and conduct our business
3. 08If we are not able to replace reserves, we may not be able to sustain production
4. 09The actual quantities of and future net revenues from our proved reserves may be less than our estimates
5. 10Our development and exploratory drilling efforts and our well operations may not be profitable or achieve our targeted returns
6. 11Certain of our undeveloped properties are subject to leases that will expire over the next several years unless production is established on units containing the acreage or the leases are renewed
7. 12Our commodity price risk management activities may limit the benefit we would receive from increases in commodity prices, may require us to provide collateral for derivative liabilities and involve risk that our counterparties may be unable to satisfy their obligations to us
8. 13Natural gas and oil operations are uncertain and involve substantial costs and risks
9. 14Our ability to produce natural gas, oil and NGL economically and in commercial quantities could be impaired if we are unable to acquire adequate supplies of water for our operations or are unable to dispose of or recycle the water we use economically and in compliance with environmental laws
10. 15Our operations may be adversely affected by pipeline, trucking and gathering system capacity constraints and may be subject to interruptions that could adversely affect our cash flow
11. 16Regional epidemics or pandemics and related economic turmoil, including supply chain constraints, have affected, and could in the future adversely affect our business, financial condition, results of operations and cash flows
12. 17Cyber-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
13. 18We collect, process, store and use personal information and other data, and our actual or perceived failure to protect such information and data or comply with data privacy and security laws and regulations could damage our reputation and brand and harm our business and operating results
14. 19Our business is subject to risks related to catastrophes, natural disasters, severe weather and human causes beyond our control, which may have a negative impact on our results of operations and financial condition
15. 20A deterioration in general economic, political, business or industry conditions would have a material adverse effect on our results of operations, liquidity and financial condition
16. 21We may be unable to dispose of assets on attractive terms, and may be required to retain liabilities for certain matters
17. 22Military and other armed conflicts, including terrorist activities, and related price volatility and geopolitical instability could materially and adversely affect our business and results of operations
18. 23We have significant capital needs, and our ability to access the capital and credit markets to raise capital on favorable terms is limited by industry conditions
19. 24Restrictive covenants in certain of our existing and future debt instruments may limit our ability to finance our operations, fund our capital needs, respond to changing conditions and engage in other business activities that may be in our best interests
20. 25Changes to the ability of our customers to receive our products or meet their financial, performance and other obligations to us could adversely impact our business and financial condition
21. 26Any failure to meet our debt obligations could harm our business, financial condition and results of operations
22. 27Our ability to comply with the covenants and other restrictions in our financing agreements may be affected by events beyond our control, including prevailing economic and financial conditions
23. 28Our common stockholders will be diluted if additional shares are issued
24. 29The trading price and volume of our common stock may be volatile, and you could lose a significant portion of your investment

Risks Related to the Company Following the Southwestern Merger

1. 30Failure to successfully integrate the business of the Company and Southwestern or realize the anticipated benefits of the Southwestern Merger may adversely affect our future results and financial condition
2. 31The market price for our common stock as a result of the Southwestern Merger may be affected by factors different from those that historically have affected our common stock
3. 32The Company’s operating results following the Southwestern Merger will suffer if we do not effectively manage our expanded operations
4. 33We have a significant amount of indebtedness, which will limit our liquidity and financial flexibility. We may also incur additional indebtedness in the future

Legal and Regulatory Risks

1. 34We are subject to extensive governmental regulation, which can change and could adversely impact our business
2. 35Costs to comply with environmental, health and safety regulations and initiatives can be significant
3. 36Increasing attention to ESG matters and our ability to achieve and maintain ESG certifications, goals and commitments may impact our business, financial results or stock price
4. 37The taxation of independent producers is subject to change, and changes in tax law could increase our cost of doing business
5. 38Judicial decisions can affect our rights and obligations