Expand Energy (EXE) Q1 2025 Earnings Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 28 2026
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Should l Buy EXE?
Source: NASDAQ.COM
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Analyst Views on EXE
Wall Street analysts forecast EXE stock price to rise
21 Analyst Rating
19 Buy
2 Hold
0 Sell
Strong Buy
Current: 95.940
Low
106.00
Averages
132.89
High
150.00
Current: 95.940
Low
106.00
Averages
132.89
High
150.00
About EXE
Expand Energy Corporation is an independent natural gas producer in the United States. The Company is focused on developing a supply of natural gas, oil and natural gas liquids (LNG) to expand energy access for all. Its operations are located in Louisiana, in the Haynesville and Bossier Shales (Haynesville), in Pennsylvania in the Marcellus Shale (Northeast Appalachia) and in West Virginia and Ohio in the Marcellus and Utica Shales (Southwest Appalachia) and include interests in approximately 8,000 gross natural gas and oil wells. The Company's operations include drilling, completion, and production. It also operates drilling rigs and provides certain oilfield products and services, principally serving the Company’s E&P operations through vertical integration. Haynesville is rich in natural gas with proximity to LNG export infrastructure. The Company's operations in Ohio and West Virginia target the Marcellus and Utica shales and provide oil and natural gas liquids.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Iran War Drives Surge in Global Natural Gas Prices
- Global Supply Disruption: The Iran war has halted 20% of global LNG supply, with Qatari facilities damaged and tankers unable to navigate the Strait of Hormuz, causing prices to surge by 84% in Europe and 108% in Asia, severely impacting import-dependent countries.
- U.S. Market Conditions: Despite U.S. gas production reaching a record 107.7 billion cubic feet per day, pipeline congestion and LNG export facilities operating near capacity have driven domestic prices down to a 17-month low of $2.52/mmBtu, creating a stark divergence from international markets.
- Transport Capacity Bottleneck: Analysts indicate that significant transport relief won't materialize until late 2026 or early 2027 when larger pipeline projects are expected to commence, forcing regions like New England to rely on expensive LNG imports and oil for power generation, exacerbating energy cost pressures.
- Market Winners and Losers: Companies like Venture Global have capitalized on global price dislocations, while major gas producers like EQT have had to cut output due to low domestic prices, highlighting the stark polarization in the market dynamics.
See More
Expand Energy Shares Rise Despite Downgrade
- Downgrade Impact: William Blair downgraded Expand Energy's shares from Outperform to Market Perform with a $112 price target, citing the need for time to achieve goals, including a $0.20/Mcfe margin improvement aimed at generating approximately $500 million in annual free cash flow.
- Strong Financial Performance: Earlier this week, Expand Energy reported solid Q1 results, generating $1.7 billion in free cash flow, primarily used to reduce leverage and return capital to shareholders, paying down $1.3 billion in gross debt and exiting the quarter with about $2.8 billion in debt while returning $290 million to shareholders.
- Demand Growth Outlook: While long-term U.S. natural gas demand growth remains robust, linked to LNG, power generation, and industrial use, the analyst noted that Expand's timeline visibility is limited, with expected demand growth dependent on gradual infrastructure buildout and project execution, which are progressing slower than initially anticipated.
- Market Competitive Landscape: Although Expand Energy's shares trade at a slight discount to some gas-focused peers, the analyst indicated that much of this discount is likely to persist until the company executes meaningful advancements beyond initial announcements, reflecting market caution regarding its future performance.
See More
Expand Energy Reports Strong Q1 2026 Earnings with Significant Cash Flow
- Free Cash Flow Performance: Expand Energy generated $1.7 billion in free cash flow in Q1 2026, successfully reducing gross debt by $1.3 billion and returning over $290 million to shareholders through base dividends and buybacks, demonstrating strong cash generation capabilities and commitment to shareholders.
- Capital Expenditure Adjustments: Despite the impact of Winter Storm Fern, which shifted some capital expenditures from Q1 to Q2, management maintained unchanged full-year production and capital guidance, indicating the company's ability to adapt in uncertain environments.
- New Contract Signing: The company announced a new offtake agreement with Delfin LNG for 1.15 million tons per year, which is larger and more cost-effective than the previous agreement, showcasing Expand Energy's strategic positioning and competitiveness in the LNG market.
- Future Outlook: Management expects to achieve production of 7.5 Bcf per day with $2.85 billion in CapEx for the year, and while market conditions may soften, the company remains capable of flexibly adjusting operations to ensure continued growth.
See More
Expand Energy Declares Quarterly Dividend of $0.575 per Share
- Quarterly Dividend Declaration: Expand Energy has declared a quarterly dividend of $0.575 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability, which is likely to attract more investor interest.
- Dividend Yield: The forward yield of 2.28% reflects the company's appeal in the current market environment, potentially boosting shareholder confidence and stabilizing the stock price.
- Strong Financial Performance: Expand Energy reported a non-GAAP EPS of $3.83 for Q1 2026, beating expectations by $0.20, with revenue of $4.39 billion exceeding forecasts by $1.34 billion, showcasing the company's robust market performance.
- Analyst Optimism: Analysts maintain a bullish outlook on Expand Energy, anticipating that the company will continue to benefit from strong free cash flow and market demand, further enhancing shareholder returns and driving company growth.
See More
Expand Energy Q1 Earnings Exceed Expectations
- Strong Performance: Expand Energy reported a Q1 Non-GAAP EPS of $3.83, beating expectations by $0.20, which reflects the company's robust profitability and enhances investor confidence.
- Significant Revenue Growth: The company achieved revenue of $4.39 billion, a 99.5% year-over-year increase, surpassing market expectations by $1.34 billion, indicating strong demand and a significant increase in market share in the natural gas sector.
- Stable Production Capacity: Net production stood at approximately 7.44 Bcfe/d, with 93% being natural gas, reaffirming the full-year 2026 guidance of around 7.5 Bcfe/d, demonstrating the company's stable production capabilities for the coming years.
- Investment Plans: Expand Energy plans to operate 11 to 12 rigs in 2026 with an estimated investment of $2.85 billion, aiming for approximately 7.5 Bcfe/d daily production, reflecting the company's strong confidence and strategic positioning for future growth.
See More
Expand Energy (EXE) Q1 2025 Earnings Transcript
See More
Iran War Drives Surge in Global Natural Gas Prices
- Global Supply Disruption: The Iran war has halted 20% of global LNG supply, with Qatari facilities damaged and tankers unable to navigate the Strait of Hormuz, causing prices to surge by 84% in Europe and 108% in Asia, severely impacting import-dependent countries.
- U.S. Market Conditions: Despite U.S. gas production reaching a record 107.7 billion cubic feet per day, pipeline congestion and LNG export facilities operating near capacity have driven domestic prices down to a 17-month low of $2.52/mmBtu, creating a stark divergence from international markets.
- Transport Capacity Bottleneck: Analysts indicate that significant transport relief won't materialize until late 2026 or early 2027 when larger pipeline projects are expected to commence, forcing regions like New England to rely on expensive LNG imports and oil for power generation, exacerbating energy cost pressures.
- Market Winners and Losers: Companies like Venture Global have capitalized on global price dislocations, while major gas producers like EQT have had to cut output due to low domestic prices, highlighting the stark polarization in the market dynamics.
See More
Expand Energy Shares Rise Despite Downgrade
- Downgrade Impact: William Blair downgraded Expand Energy's shares from Outperform to Market Perform with a $112 price target, citing the need for time to achieve goals, including a $0.20/Mcfe margin improvement aimed at generating approximately $500 million in annual free cash flow.
- Strong Financial Performance: Earlier this week, Expand Energy reported solid Q1 results, generating $1.7 billion in free cash flow, primarily used to reduce leverage and return capital to shareholders, paying down $1.3 billion in gross debt and exiting the quarter with about $2.8 billion in debt while returning $290 million to shareholders.
- Demand Growth Outlook: While long-term U.S. natural gas demand growth remains robust, linked to LNG, power generation, and industrial use, the analyst noted that Expand's timeline visibility is limited, with expected demand growth dependent on gradual infrastructure buildout and project execution, which are progressing slower than initially anticipated.
- Market Competitive Landscape: Although Expand Energy's shares trade at a slight discount to some gas-focused peers, the analyst indicated that much of this discount is likely to persist until the company executes meaningful advancements beyond initial announcements, reflecting market caution regarding its future performance.
See More
Expand Energy Reports Strong Q1 2026 Earnings with Significant Cash Flow
- Free Cash Flow Performance: Expand Energy generated $1.7 billion in free cash flow in Q1 2026, successfully reducing gross debt by $1.3 billion and returning over $290 million to shareholders through base dividends and buybacks, demonstrating strong cash generation capabilities and commitment to shareholders.
- Capital Expenditure Adjustments: Despite the impact of Winter Storm Fern, which shifted some capital expenditures from Q1 to Q2, management maintained unchanged full-year production and capital guidance, indicating the company's ability to adapt in uncertain environments.
- New Contract Signing: The company announced a new offtake agreement with Delfin LNG for 1.15 million tons per year, which is larger and more cost-effective than the previous agreement, showcasing Expand Energy's strategic positioning and competitiveness in the LNG market.
- Future Outlook: Management expects to achieve production of 7.5 Bcf per day with $2.85 billion in CapEx for the year, and while market conditions may soften, the company remains capable of flexibly adjusting operations to ensure continued growth.
See More
Expand Energy Declares Quarterly Dividend of $0.575 per Share
- Quarterly Dividend Declaration: Expand Energy has declared a quarterly dividend of $0.575 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability, which is likely to attract more investor interest.
- Dividend Yield: The forward yield of 2.28% reflects the company's appeal in the current market environment, potentially boosting shareholder confidence and stabilizing the stock price.
- Strong Financial Performance: Expand Energy reported a non-GAAP EPS of $3.83 for Q1 2026, beating expectations by $0.20, with revenue of $4.39 billion exceeding forecasts by $1.34 billion, showcasing the company's robust market performance.
- Analyst Optimism: Analysts maintain a bullish outlook on Expand Energy, anticipating that the company will continue to benefit from strong free cash flow and market demand, further enhancing shareholder returns and driving company growth.
See More
Expand Energy Q1 Earnings Exceed Expectations
- Strong Performance: Expand Energy reported a Q1 Non-GAAP EPS of $3.83, beating expectations by $0.20, which reflects the company's robust profitability and enhances investor confidence.
- Significant Revenue Growth: The company achieved revenue of $4.39 billion, a 99.5% year-over-year increase, surpassing market expectations by $1.34 billion, indicating strong demand and a significant increase in market share in the natural gas sector.
- Stable Production Capacity: Net production stood at approximately 7.44 Bcfe/d, with 93% being natural gas, reaffirming the full-year 2026 guidance of around 7.5 Bcfe/d, demonstrating the company's stable production capabilities for the coming years.
- Investment Plans: Expand Energy plans to operate 11 to 12 rigs in 2026 with an estimated investment of $2.85 billion, aiming for approximately 7.5 Bcfe/d daily production, reflecting the company's strong confidence and strategic positioning for future growth.
See More
Expand Energy (EXE) Q1 2025 Earnings Transcript
See More
