Oklahoma City-based Expand Energy Corporation (EXE) operates as an independent natural gas production company in the United States. With a market cap of $25.1 billion, the company engages in the acquisition, exploration, and development of properties to produce oil, natural gas, and natural gas liquids.
The energy major is expected to announce its second-quarter results on Monday, Aug. 4. Ahead of the event, analysts expect EXE to deliver a profit of $1.32 per share, significantly up from the $0.01 per share reported in the year-ago quarter. While the company has missed the Street’s bottom-line estimates in one of the past four quarters, it has surpassed the projections on three other occasions.
For the full fiscal 2025, analysts expect EXE to deliver an EPS of $7.41, up from $1.41 reported in fiscal 2024. Further, in fiscal 2026, its earnings are expected to surge 46.6% year-over-year to $10.86 per share.
EXE stock has soared 31.3% over the past 52 weeks, notably outperforming the S&P 500 Index’s ($SPX) 11.6% gains and the Energy Select Sector SPDR Fund’s (XLE) 2.6% dip during the same time frame.
Expand Energy’s stock prices dropped 3.3% in the trading session following the release of its Q1 results on Apr. 29. The company operated an average of 11 rigs during the quarter, drilling 46 wells and turning 89 wells in line, which significantly boosted its top-line performance. Despite the $1 billion loss due to derivatives, its topline increased 103.1% year-over-year to $2.2 billion. Meanwhile, its non-GAAP net income grew from $80 million in Q1 2024 to $487 million, and its non-GAAP EPS of $2.02 per share surpassed the consensus estimates by 9.2%.
However, its non-GAAP net income included an adjustment of $969 million for unrealized losses on natural gas and oil derivatives, and on a GAAP basis, the company reported net losses of $249 million, which likely failed to impress investors.
Among the 26 analysts covering the EXE stock, the consensus rating is a “Strong Buy.” That’s based on 22 “Strong Buys,” two “Moderate Buys,” and two “Holds.” Its mean price target of $131.62 suggests a 20.1% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
