American Oil and Gas Reporter - January 2025 - 58

Expand Energy Profile
Noting that billions of people lack
access to affordable, reliable and clean
energy, Dell'Osso says one of humanity's
greatest challenges is effectively addressing
this crisis. " We believe natural gas is
the best positioned solution to answer
that call, " he relates. " By safely and responsibly
delivering critical energy to
markets in need, Expand Energy will
help address one of the great threats to
human prosperity. "
Comeback Story
Two decades ago, in the dawning days
of the shale gas revolution, Expand Energy's
predecessors quickly proved up
the production potential of unconventional
reservoirs. Within a few short years, North
American natural gas market forecasts
flipped 180-degrees from " chronic tightness
and high costs " to long-term " abundance
and affordability. " Seemingly all
of the sudden, analysts went from talking
about shortages to surpluses. It was one
of the greatest-and arguably least celebrated-comeback
stories of all time.
However, the reach of " U.S.-made "
natural gas was very short, constrained
by limited export capacity on pipelines
and a handful of small liquified natural
gas terminals constructed to move supplies
into the American market, not ship it out.
The game-changer, of course, is LNG
export capacity, Dell'Osso points out.
U.S. export volumes have ramped up
rapidly over the past decade, touching
record highs year after year as new terminals
and trains are commissioned. The world
now has access to U.S. gas, and markets
everywhere are taking advantage of the
supply surety and affordability that American
consumers have enjoyed for years. In
2025, outbound LNG cargoes from American
terminals are projected to average 14
billion cubic feet a day, according to the
U.S. Energy Information Administration.
Counting the announced construction
projects currently under way (with a
freeze on new projects lifted and even
more plants on the drawing board), EIA
estimates that U.S. exports will double
between 2023 and 2028, helping fuel
prosperity in even the most energystrapped
countries around the globe.
It takes a lot of production output to
sustain that level of growth in LNG exports,
let alone expansion in other domestic
market sectors. That's where Expand Energy
enters the picture. The company's fourthquarter
gas production is expected to close
the year averaging nearly 6.4 Bcfe/d from
the Appalachian and Haynesville Shale
basins, " delivering critical energy to markets
in need, " as Dell'Osso puts it.
Starring Role
One thing is certain: Expand Energy's
expansive leasehold in Appalachia and
the Haynesville positions it to play a
starring supply-side role for many years
to come. Expand Energy's portfolio includes
1.2 million net acres in Northeast
Pennsylvania, West Virginia and Ohio
and 650,000 acres in the Haynesville,
where 20% of its production in northern
Louisianna moves south to Gulf Coast
LNG terminals servicing overseas demand
centers.
" We are really excited about how all
of this sets up for our company, " Dell'Osso
says. " We have tremendous resources in
the ground. We have a tremendously talented
team that is always focused on getting
those resources out of the ground
and to market at the lowest cost. "
For preliminary guidance, the company
estimates a 2025 capital budget of $2.7
billion to maintain daily production at 7
Bcfe. Expand Energy will run 10-12 rigs
and five to six frac crews, reports Executive
Vice President and Chief Operating Officer
Josh Viets.
In Louisiana, the company's midstream
infrastructure and inventory depth provide
growth flexibility as LNG demand grows.
Expand Energy has been working eight
rigs and three frac crews in the Haynesville
and holds an average 91% working interest
per well with average net revenue interest
of 72%.
The Northeast Appalachia position includes
abundant dry gas reserves in
Susquehanna, Wyoming, Bradford, Sullivan,
Lycoming and Tioga counties, with
lateral lengths on more than 15 wells extending
beyond 18,000 feet. Although
gas accounts for 90% of companywide
production, oil and natural gas liquids
make up 35% of output in West Virginia
and Ohio.
Technological Advancement
Throughout the company's operational
Expand Energy emerged from the combination of Chesapeake and Southwestern as
America's premier natural gas company and its top gas producer with a daily average
volume of 7 Bcfe.
58 THE AMERICAN OIL & GAS REPORTER
footprint, technological advancement will
continue to drive efficiency improvements,
production gains and ultimate recovery,
Viets says, with the focus in 2025 continuing
to be on increasing lateral lengths
and optimizing completion designs.
In 2024, lateral lengths in Northeast
Appalachia increased by almost 20% and
drilling footage per day rose 25%, Viets
notes. Southwestern drilled a lateral in
Southwest Appalachia that Expand Energy
American Oil and Gas Reporter - January 2025

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