EVA is registered trademark of Stern Stewart.

Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

Economic Profit
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

Expand Energy Corp., economic profit calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net operating profit after taxes (NOPAT)¹	(723)	2,933)	3,737)	6,263)
Cost of capital²	8.96%	9.25%	9.07%	8.92%
Invested capital³	22,822)	11,924)	10,988)	7,990)

Economic profit⁴	(2,768)	1,830)	2,740)	5,550)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2024 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= -723 – 8.96% × 22,822 = -2,768

Download chart

Item	Description	The company
Economic profit	Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital.	Expand Energy Corp. economic profit decreased from 2022 to 2023 and from 2023 to 2024.

Expand Energy Corp., NOPAT calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net income (loss)	(714)	2,419)	4,936)	6,328)
Deferred income tax expense (benefit)¹	(123)	428)	(1,332)	(106)
Increase (decrease) in allowance for doubtful accounts²	10)	(2)	—)	(27)
Increase (decrease) in equity equivalents³	(113)	426)	(1,332)	(133)
Interest expense	123)	104)	160)	84)
Interest expense, operating lease liability⁴	9)	7)	8)	1)
Adjusted interest expense	132)	111)	168)	85)
Tax benefit of interest expense⁵	(28)	(23)	(35)	(18)
Adjusted interest expense, after taxes⁶	104)	88)	133)	68)
Net operating profit after taxes (NOPAT)	(723)	2,933)	3,737)	6,263)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in allowance for doubtful accounts.

³ Addition of increase (decrease) in equity equivalents to net income (loss).

⁴ 2024 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 145 × 5.99% = 9

⁵ 2024 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 132 × 21.00% = 28

⁶ Addition of after taxes interest expense to net income (loss).

Download chart

Item	Description	The company
NOPAT	Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income.	Expand Energy Corp. NOPAT decreased from 2022 to 2023 and from 2023 to 2024.

Expand Energy Corp., cash operating taxes calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Income tax expense (benefit)	(127)	698)	(1,285)	(106)
Less: Deferred income tax expense (benefit)	(123)	428)	(1,332)	(106)
Add: Tax savings from interest expense	28)	23)	35)	18)
Cash operating taxes	24)	293)	82)	18)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

Download chart

Item	Description	The company
Cash operating taxes	Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction.	Expand Energy Corp. cash operating taxes increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Expand Energy Corp., invested capital calculation (financing approach)

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Current maturities of long-term debt, net	389)	—)	—)	—)
Long-term debt, net, excluding current maturities	5,291)	2,028)	3,093)	2,278)
Operating lease liability¹	145)	99)	119)	38)
Total reported debt & leases	5,825)	2,127)	3,212)	2,316)
Stockholders’ equity	17,565)	10,729)	9,124)	5,671)
Net deferred tax (assets) liabilities²	(579)	(933)	(1,351)	—)
Allowance for doubtful accounts³	11)	1)	3)	3)
Equity equivalents⁴	(568)	(932)	(1,348)	3)
Accumulated other comprehensive (income) loss, net of tax⁵	—)	—)	—)	—)
Adjusted stockholders’ equity	16,997)	9,797)	7,776)	5,674)
Invested capital	22,822)	11,924)	10,988)	7,990)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

¹ Addition of capitalized operating leases.

² Elimination of deferred taxes from assets and liabilities. See details »

³ Addition of allowance for doubtful accounts receivable.

⁴ Addition of equity equivalents to stockholders’ equity.

⁵ Removal of accumulated other comprehensive income.

Download chart

Item	Description	The company
Invested capital	Capital is an approximation of the economic book value of all cash invested in going-concern business activities.	Expand Energy Corp. invested capital increased from 2022 to 2023 and from 2023 to 2024.

Expand Energy Corp., cost of capital calculations

Dec 31, 2024

	Capital (fair value)¹	Weights					Cost of capital
Equity²	23,835)	23,835)	÷	29,528)	=	0.81	0.81	×	10.05%	=	8.12%
Debt³	5,548)	5,548)	÷	29,528)	=	0.19	0.19	×	5.55% × (1 – 21.00%)	=	0.82%
Operating lease liability⁴	145)	145)	÷	29,528)	=	0.00	0.00	×	5.99% × (1 – 21.00%)	=	0.02%
Total:	29,528)					1.00					8.96%

Based on: 10-K (reporting date: 2024-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	10,967)	10,967)	÷	13,009)	=	0.84	0.84	×	10.05%	=	8.48%
Debt³	1,943)	1,943)	÷	13,009)	=	0.15	0.15	×	6.21% × (1 – 21.00%)	=	0.73%
Operating lease liability⁴	99)	99)	÷	13,009)	=	0.01	0.01	×	7.02% × (1 – 21.00%)	=	0.04%
Total:	13,009)					1.00					9.25%

Based on: 10-K (reporting date: 2023-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	10,737)	10,737)	÷	13,783)	=	0.78	0.78	×	10.05%	=	7.83%
Debt³	2,927)	2,927)	÷	13,783)	=	0.21	0.21	×	7.10% × (1 – 21.00%)	=	1.19%
Operating lease liability⁴	119)	119)	÷	13,783)	=	0.01	0.01	×	6.64% × (1 – 21.00%)	=	0.05%
Total:	13,783)					1.00					9.07%

Based on: 10-K (reporting date: 2022-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	8,407)	8,407)	÷	10,758)	=	0.78	0.78	×	10.05%	=	7.86%
Debt³	2,313)	2,313)	÷	10,758)	=	0.22	0.22	×	6.21% × (1 – 21.00%)	=	1.05%
Operating lease liability⁴	38)	38)	÷	10,758)	=	0.00	0.00	×	3.80% × (1 – 21.00%)	=	0.01%
Total:	10,758)					1.00					8.92%

Based on: 10-K (reporting date: 2021-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Expand Energy Corp., economic spread ratio calculation, comparison to benchmarks

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Selected Financial Data (US$ in millions)
Economic profit¹	(2,768)	1,830)	2,740)	5,550)
Invested capital²	22,822)	11,924)	10,988)	7,990)
Performance Ratio
Economic spread ratio³	-12.13%	15.34%	24.94%	69.46%
Benchmarks
Economic Spread Ratio, Competitors⁴
Chevron Corp.	-5.27%	-5.92%	4.58%	-4.44%
ConocoPhillips	-5.41%	-0.01%	12.59%	-1.31%
Exxon Mobil Corp.	-4.71%	-0.55%	8.18%	-0.21%
Occidental Petroleum Corp.	-9.30%	-5.72%	6.69%	-5.19%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2024 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -2,768 ÷ 22,822 = -12.13%

⁴ Click competitor name to see calculations.

Download chart

Performance ratio	Description	The company
Economic spread ratio	The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital.	Expand Energy Corp. economic spread ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Expand Energy Corp., economic profit margin calculation, comparison to benchmarks

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Selected Financial Data (US$ in millions)
Economic profit¹	(2,768)	1,830)	2,740)	5,550)
Revenues	4,259)	6,047)	14,123)	7,301)
Performance Ratio
Economic profit margin²	-65.00%	30.26%	19.40%	76.01%
Benchmarks
Economic Profit Margin, Competitors³
Chevron Corp.	-5.67%	-6.38%	4.12%	-5.52%
ConocoPhillips	-10.51%	-0.01%	12.11%	-2.18%
Exxon Mobil Corp.	-5.26%	-0.50%	6.09%	-0.21%
Occidental Petroleum Corp.	-23.28%	-11.50%	10.29%	-11.60%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

¹ Economic profit. See details »

² 2024 Calculation
Economic profit margin = 100 × Economic profit ÷ Revenues
= 100 × -2,768 ÷ 4,259 = -65.00%

³ Click competitor name to see calculations.

Download chart

Performance ratio	Description	The company
Economic profit margin	The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin.	Expand Energy Corp. economic profit margin improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Expand Energy Corp. (NASDAQ:EXE)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin