Bernstein SocGen Group Starts Expand Energy (EXE) at Outperform

Bernstein SocGen Group analyst Bob Brackett initiates coverage on Expand Energy (NASDAQ: EXE) with a Outperform rating and a price target of $150.00.

The analyst comments: "We are gas bulls and see mid-cycle Henry Hub price rising to $5/mcf. We have expounded on our bullishness in the call on a US gas supercycle, driven by significant (and certain) LNG demand as well as growing power demand. We view the Haynesville as the pivotal gas basin. Over 70% of US gas supply is either associated gas and therefore linked to oil prices or pipeline-constrained (as in the case of the Appalachia). The Haynesville is one of the few swing basins with the ability to increase production – it can decide whether to be the marginal basin. Producing nearly a quarter of gas coming out of the Haynesville, we believe Expand will grow as the US electrifies the economy. We expect production to reach 7.5bcfe/d in 2026 on additional Haynesville capacity. We believe Expand will deliver on its synergy guidance of $500 mln annually by 2026, mostly driven by corporate cost savings and drilling optimization. EXE is our favorite equity to invest in the Haynesville value over volume theme and our second favorite equity to invest in the future of gas theme (slightly behind EQT given lower beta to price)."

For an analyst ratings summary and ratings history on Expand Energy click here. For more ratings news on Expand Energy click here.

Shares of Expand Energy closed at $114.71 yesterday.

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