Expand Energy Corporation (EXE)

Debt-to-equity ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	2,017,000	2,021,000	2,025,000	2,028,000	2,032,000	2,036,000	2,040,000	3,093,000	2,717,000	3,046,000	2,774,000	2,278,000	1,259,000	1,261,000	1,262,000	0	0	0	9,163,000	9,073,000
Total stockholders’ equity	US$ in thousands	10,188,000	10,370,000	10,682,000	10,729,000	10,268,000	10,396,000	10,283,000	9,124,000	6,347,000	5,808,000	5,383,000	5,671,000	3,038,000	3,413,000	3,881,000	-5,341,000	-4,940,000	-4,209,000	-3,945,000	4,364,000
Debt-to-equity ratio		0.20	0.19	0.19	0.19	0.20	0.20	0.20	0.34	0.43	0.52	0.52	0.40	0.41	0.37	0.33	—	—	—	—	2.08

September 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,017,000K ÷ $10,188,000K
= 0.20

The debt-to-equity ratio of Expand Energy Corporation has shown a decreasing trend over the past few quarters from 0.52 in the first quarter of 2022 to 0.19 in the most recent quarter of September 2024. This indicates that the company has been reducing its reliance on debt as a source of financing relative to its equity. The significant decrease from 0.52 to 0.40 in the fourth quarter of 2021 suggests a notable shift in the company's capital structure. The ratio remained relatively stable around 0.20 from the third quarter of 2023 to the second quarter of 2024, indicating a consistent debt-to-equity mix during that period.

It is important to note that there was a significant spike in the debt-to-equity ratio to 2.08 in the fourth quarter of 2019, which could be a cause for concern as it indicates a high level of debt relative to equity at that time. However, since then, the company has made efforts to bring this ratio down, reflecting a more balanced financial position.

Overall, the decreasing trend in the debt-to-equity ratio signals that Expand Energy Corporation has been managing its debt levels effectively and moving towards a healthier capital structure with a lower reliance on debt financing. Investors and stakeholders may view this trend positively as it indicates improved financial stability and reduced risk of financial distress due to excessive debt burden.