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Expand Energy Corporation (EXE)

Fair Value
EnergyOil & Gas E&PUnited States

Fundamental

82

Price

$84.09

Market Cap

$21.20B

Part 1 · What the company is worth

Overview

Expand Energy drills and produces natural gas, formed by the 2024 merger of Chesapeake Energy and Southwestern Energy into the largest natural gas producer in the United States. Its wells sit in two shale regions, the Appalachian basin in Pennsylvania, West Virginia and Ohio and the Haynesville basin in Louisiana, and roughly 92% of what it produces is natural gas rather than oil, with small amounts of oil and natural gas liquids alongside it.

How it makes money

Revenue comes from selling the natural gas, oil and natural gas liquids it extracts at prevailing market prices, which the company partly locks in ahead of time through hedging contracts to smooth out the swings. It has no control over the price it receives the way a branded consumer company would; profitability instead depends on producing at low enough cost per unit that even a weak gas price still leaves a margin, and on growing sales tied to new gas-fired power plants and LNG export terminals.

Competitive moat

No identified moat · None

Natural gas is a commodity: one producer's molecule is interchangeable with another's, and Expand Energy has no ability to charge more than the market price regardless of how large or efficient it is. Being the largest US gas producer gives it scale advantages in cost and infrastructure access, but that lowers costs rather than creating pricing power or locking in customers.

What drives demand

Cyclical

Natural gas prices move sharply with weather, how much gas is in storage, and how much demand comes from LNG export terminals and power plants, so revenue can swing significantly between quarters even if the company's own production stays steady. A structurally new driver — gas-fired electricity for data centres and AI computing — is adding demand, but the underlying commodity price remains volatile.

Key risks

  • Natural gas price volatility — The company states that a sustained period of low natural gas, oil or NGL prices is likely to have a material adverse effect on its financial condition and results of operations.
  • Uncertainty in reserve estimates — Estimated gas and oil reserves are inherently uncertain and often differ from the quantities actually recovered, which can lead to future write-downs or lower-than-expected output from existing wells.
  • Climate and methane regulation — EPA methane rules, potential emissions charges and evolving regulation of LNG exports could raise compliance costs or restrict how and where the company can produce and sell gas.
  • Limits on tax attributes from the merger — The 2024 merger with Southwestern Energy triggered an annual limitation on how much of the company's accumulated tax attributes it can use, reducing a benefit that would otherwise have lowered future cash taxes.

The case for

Buyers argue that Expand Energy's scale as the largest US gas producer gives it a low-cost position across two premier shale basins, that growing gas demand from LNG exports and new gas-fired power plants for data centres supports prices over time, and that continued debt reduction strengthens the balance sheet through the commodity cycle.

The case against

Sellers fear that natural gas prices are inherently volatile and outside the company's control, that stricter methane and emissions regulation could raise costs, and that a leveraged balance sheet inherited from recent mergers leaves less room to absorb a prolonged period of weak gas prices.

Written by the editors, published on August 18, 2026

Direct competitors

Who this company fights with for the same customers

Compare

Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users

P/E: 11.3Score: 72Market cap: $31.19B

EQT is the other giant of Appalachian shale gas, selling the same Marcellus and Utica dry gas into the same pipelines and to the same utility, industrial and LNG-bound buyers.

P/E: 9.6Score: 81Market cap: $10.56B

Antero drills the same southwest Appalachian acreage in West Virginia and Ohio and competes with Expand for pipeline capacity, drilling rigs and leases in that basin.

Comstock Resources, Inc.CRK

Comstock is the other leading operator of the Haynesville and Bossier shales in Louisiana, selling gas to the same Gulf Coast LNG plants and industrial buyers that Expand's Haynesville output targets.

Coterra Energy Inc.CTRA

Coterra's Marcellus operations in northeast Pennsylvania put its gas into the same regional market and pricing hubs as Expand's Northeast Appalachia production.

Range Resources CorporationRRC

Range is a long-established southwest Pennsylvania Marcellus producer competing for the same acreage, midstream capacity and gas buyers in Appalachia.

CNX Resources CorporationCNX

CNX produces Marcellus and Utica gas in Pennsylvania, West Virginia and Ohio, overlapping directly with Expand's Appalachian acreage and customer base.

Balance Sheet & Liquidity

Revenue

$14.32B

Trailing 12 months (through 3/31/2026)

Net Income

$3.23B

Trailing 12 months (through 3/31/2026)

Free Cash Flow

$1.84B

Total Equity

$18.58B

Total Liabilities

$9.71B

Current Ratio

1.11

Interest Coverage

18.17

Debt/EBITDA

0.93

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

CyclicalFairly Valued

Fair Value

$109.07

Current Price

$84.09

Margin of Safety

+22.9%

Fair Value Range

$77.49 - $140.65

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$125.52
Discounted cash flow (DCF):Not applicable to this type of company
Earnings multiple (P/E):$117.79
Graham growth formula:Not applicable to this type of company
Earnings power value (EPV):$153.31
Justified P/B:Not applicable to this type of company
Dividend discount (Gordon):Not applicable to this type of company
P/FFO, funds from operations:Not applicable to this type of company
Mid-cycle earnings:$75.34
Revenue multiple:Not applicable to this type of company
Analyst Consensus:Strong Buy (24B / 6H / 0S)
Last Earnings Surprise:+14.91%

Valuation Metrics

P/E Ratio

6.26

ROE

9.8%

P/B Ratio

1.03

P/FCF

6.70

Gross Margin

-

ROIC

13.2%

Profitability Radar

Value Creation (Economic Moat)

ROIC

13.2%

WACC

7.1%

ROIC − WACC

+6.0 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (22)

  • EPS shows upward trend
  • EPS CAGR 6.05%
  • Price CAGR 6.17%
  • ROIC 13.2%
  • P/FCF 6.70
  • P/B Ratio 1.03
  • Debt/Equity ratio
  • Operating Margin 29.8%
  • Positive Free Cash Flow
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • Low reliance on intangibles
  • Price below Graham Number
  • ROE 14.7%
  • Revenue Growth 5Y 18.3%
  • Analyst Consensus 80% Buy
  • Earnings Surprise avg 5.7%
  • Earnings Quality (OCF/NI) 1.82
  • Net Margin Trend 22.5% vs -18.5%
  • Piotroski F-Score 7/9

Failed (3)

  • CapEx intensity
  • DCF valuation (Overvalued)
  • Share Dilution 53.1%

Unavailable (3)

  • Gross Margin NaN%
  • Dividend Payout NaN%
  • PEG Ratio (need PE > 0 and growth > 0)

Piotroski F-Score

7/9

Strong financial health

score
criteria

Earnings Quality

1.82

High quality: earnings backed by cash

Share Dilution

53.1%

Issuing new shares, diluting ownership

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Michael A. WichterichChairman of the Board, Interim President & CEO57
Mr. Joshua J. VietsExecutive VP & COO47
Ms. Brittany RaifordVice President of IR & Treasurer38
Mr. Christopher W. Lacy J.D.Executive VP, General Counsel & Corporate Secretary47
Mr. Marcel TeunissenExecutive VP & CFO51
Mr. John ChristVP & Chief Information Officer-
Brooke CoeManager of Communications & Media Relations-
Mr. Chris AyresSenior Vice President of Corporate Development & Strategy-
Ms. Toni Parks-PayneVice President of Human Resources & Employee Services-
Mr. Rob BrandenburgVP & Chief Risk Officer-

Audit Risk

5

Board Risk

8

Compensation Risk

3

Shareholder Rights Risk

8

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-18

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-07-28

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-09-17

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for EXE, sourced from Markets Gazette.

No recent news for EXE.