Piper Sandler raises Expand Energy stock to overweight, PT to $136

Published 13/05/2025, 12:20
Piper Sandler raises Expand Energy stock to overweight, PT to $136

Tuesday, Piper Sandler upgraded Expand Energy (NASDAQ:EXE) stock from Neutral to Overweight, with a new price target set at $136, up from the previous $103. Currently trading at $110.92, the stock is near its 52-week high of $114.03. The adjustment reflects a positive outlook based on revised gas price forecasts, with the mid-cycle gas price prediction increasing to $3.50 from $3.25. According to InvestingPro data, 10 analysts have recently revised their earnings estimates upward, suggesting growing confidence in the company’s prospects.

The firm’s analysts highlighted EXE’s strategic positioning to capitalize on the growing demand for natural gas, which is expected to rise with the expansion of liquefied natural gas (LNG) export capabilities along the Gulf Coast. The company’s strong market position is reflected in its impressive 35.62% revenue growth over the last twelve months. Notably, the Plaquemines facility has reached a capacity of 2 billion cubic feet per day in the first quarter of 2025. Further increments in LNG export are anticipated with the upcoming Corpus Christi Phase 3 and the Golden Pass facility, slated to commence operations in early 2026.

EXE has been proactive in responding to the market’s demand, accelerating its previously delayed turn-in-line (TIL) capacity. The company is planning to increase its rig count and drilled but uncompleted (DUC) well completions in the second half of 2025. This strategy is projected to yield approximately 800 million cubic feet equivalent per day (mmcfe/d) and 300 mmcfe/d of exit rate growth in 2025 and 2026, respectively.

The upgrade comes despite EXE trading at a significant discount compared to its gas-weighted peers, even as it stands out as one of the few operators able to deliver near-term growth in a robust natural gas market. Piper Sandler’s endorsement suggests confidence in EXE’s potential for growth and its ability to meet the increasing energy demands. For a comprehensive analysis of EXE’s valuation and growth prospects, including 8 additional exclusive ProTips and detailed financial metrics, visit InvestingPro.

In other recent news, Expand Energy Corp reported its first-quarter 2025 earnings, which showed a mixed financial performance. The company exceeded earnings per share (EPS) expectations with a reported EPS of $2.02, surpassing the forecasted $1.67 by 21%. However, revenue fell short of expectations, coming in at $2.2 billion against an anticipated $2.49 billion, raising concerns among investors. Despite the EPS beat, the company’s stock saw a decline of 3.88% in after-hours trading, reflecting apprehension over the revenue miss. Additionally, Expand Energy achieved significant operational milestones, including bringing online 130 wells over the last two quarters and achieving record drilling footage in key regions. The company also reduced its gross debt by approximately $1 billion, which enhances its financial health. Furthermore, Expand Energy recently joined the S&P 500 Index and received an upgrade to investment grade by Moody’s, showcasing its growing credibility. The company is targeting production of 7.5 billion cubic feet per day in 2026 and is exploring opportunities in the LNG market, with expectations for significant free cash flow growth in the coming years.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.