In This Article:
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.
While we acknowledge the potential of EXE to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than EXE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
