It was recently reported that analysts at Bernstein have initiated coverage of Expand Energy Corporation (NASDAQ:EXE). Let's shed some light on the development.
A technician making adjustments to a natural gas pipeline entering a processing facility.
Formed in 2024 by the merger of Chesapeake Energy Corporation and Southwestern Energy Company, Expand Energy Corporation (NASDAQ:EXE) is the largest natural gas producer in America. The company is focused on responsibly developing an abundant supply of natural gas, oil, and natural gas liquids, with assets concentrated across ~1.83 million net acres in the Appalachia and Haynesville basins.
On May 22, 2025, Bernstein SocGen Group initiated coverage on Expand Energy Corporation (NASDAQ:EXE) with an Outperform rating and a price target of $150. The analyst is bullish on natural gas and sees mid-cycle Henry Hub price rising to $5/mcf. The American natural gas industry is set to receive a significant boost from the ballooning LNG industry, especially with more export projects coming online under the Trump administration. Moreover, natural gas has emerged as a leading candidate to power the ongoing AI boom and its accompanying data centers.
The Haynesville Shale, where Expand Energy Corporation (NASDAQ:EXE) is a significant player, is identified as a crucial gas basin in the United States. Thanks to its increased capacity in the Haynesville region, Bernstein projects that EXE's production could reach 7.5 bcf/d by 2026, enabling the company to deliver on its synergy guidance, achieving $500 million in annual savings by 2026. Expand Energy is Bernstein’s top investment choice in the Haynesville ‘value over volume' theme and its second-favorite equity to invest in the future of the gas sector, ranking slightly behind EQT Corporation.
It must be mentioned that Expand Energy Corporation (NASDAQ:EXE) has hit some significant milestones recently, including joining the S&P 500 and achieving an upgrade to investment grade by Moody’s. The company had a production rate of approximately 6.79 bcfe/d in the first quarter of 2025, with 92% from natural gas. These numbers are expected to receive a significant boost since Expand plans to invest $2.7 billion to increase its rig count to approximately 15 by the end of 2025.
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