Expand Energy

(d) Included approximately $2,120 million of future plugging and abandonment costs as of December 31, 2025.

(e) Included approximately $1,625 million of future plugging and abandonment costs as of December 31, 2024.

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EXPAND ENERGY CORPORATION AND SUBSIDIARIES

SUPPLEMENTARY INFORMATION - (Continued)

(f) Included approximately $730 million of future plugging and abandonment costs as of December 31, 2023.

A ratings downgrade could adversely impact future access to debt markets, increase the cost of future debt and could require posting letters of credit or other collateral.

Adjusted EBITDAX: Adjusted EBITDAX is defined as net income (loss) before interest expense, income tax expense (benefit), depreciation, depletion and amortization expense, exploration expense, unrealized (gains) losses on derivatives, separation and other termination costs, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results. Adjusted EBITDAX is presented as it provides investors an indication of the Company's ability to internally fund exploration and development activities and service or incur debt. Adjusted EBITDAX should not be considered an alternative to, or more meaningful than, net income (loss) as presented in accordance with GAAP.

Adjusted Net Income: Adjusted Net Income is defined as net income (loss) adjusted to exclude unrealized (gains) losses on derivatives, separation and other termination costs, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results, less a tax effect using applicable rates. Expand Energy believes that Adjusted Net Income facilitates comparisons of the Company's period-over-period performance, by excluding the impact of items that, in the opinion of management, do not reflect Expand Energy's core operating performance. Adjusted Net Income should not be considered an alternative to, or more meaningful than, net income (loss) as presented in accordance with GAAP.

Although the company says it has endeavored to implement management transitions in a non-disruptive manner, such transitions can be inherently difficult to manage, may hamper meeting financial and operational goals, and may create uncertainty among customers, investors, vendors and employees, potentially causing significant operational disruptions.