SWN Overview

Goldman Sachs Coverage on Expand Energy Corp: Goldman Sachs has reinstated a "Buy" rating for Expand Energy Corp (NASDAQ:EXE) with a price target of $121, emphasizing its operational efficiency and strategic positioning in key natural gas basins after its merger with Chesapeake Energy and Southwestern Energy.

Downgrades for Other Companies: The bank downgraded Magnolia Oil & Gas to "Neutral" with a price target of $26 and Occidental Petroleum to "Sell," citing concerns over capital returns and balance sheet issues, while noting potential long-term improvements for Occidental.

Oilfield Service Sector Consolidation: The oilfield service sector is expected to see increased consolidation in 2025, driven by a potential loosening of regulations under President-elect Donald Trump and a wave of mergers among oil producers, which may lead smaller companies to seek favorable buyouts.

Market Dynamics and M&A Activity: The U.S. shale patch has experienced a reduction in customer bases due to significant mergers, with the oilfield services sector witnessing $19.7 billion in deals in 2024, the highest since 2018, indicating strong buyer interest and a fragmented market ripe for further consolidation.

Company Merger Announcement: Chesapeake Energy Corporation and Southwestern Energy Company have completed their merger, forming a new entity called Expand Energy Corporation, which will begin trading on NASDAQ under the ticker "EXE" starting October 2, 2024.

Future Plans and Commitments: Expand Energy aims to disrupt traditional energy delivery models while enhancing shareholder value and sustainability, with plans to release its third quarter results and preliminary 2025 operational plans on October 29, 2024.

Investment Opportunities in Low-Priced Stocks: The article discusses the potential of investing in stocks under $10, highlighting their high-risk but high-reward nature. It emphasizes the importance of selecting stocks based on strong fundamentals and market sentiment, particularly in the context of current economic volatility.

Focus on Southwestern Energy Company (SWN): Southwestern Energy Company is identified as a leading stock under $10, showcasing solid operational performance despite recent losses. The company has demonstrated agility in production and investment strategies, positioning itself favorably within the energy sector amidst fluctuating commodity prices.

NASDAQ 100 After Hours Performance: The NASDAQ 100 is down -23.84 to 20,036.85 with a total after-hours volume of 112,596,343 shares traded, featuring active stocks like Southwestern Energy (SWN) and NVIDIA (NVDA), which have shown varying performance against their target prices.

Stock Recommendations: Several companies including Bath & Body Works (BBWI), Comcast (CMCSA), and Apple (AAPL) are reported to be in the "buy range" according to Zacks, while others like Intel (INTC) and Alphabet (GOOGL) show mixed results in after-hours trading.

Chesapeake Energy's Stock Performance: Shares of Chesapeake Energy Corp rose 3.3% to $82.98 as oil prices increased following a lower-than-expected inflation report for August, with analysts predicting rising gas prices in the coming years due to its merger with Southwestern Energy Co.

Analyst Outlook: Analyst Leo Mariani initiated coverage with a Buy rating and a price target of $92, highlighting Chesapeake's competitive cost structure and potential for increased gas pricing driven by LNG deals in the future.