Expand Energy Corporation: Swimming Downstream: EXE Acquires Gas Marketing Business

Research evidence excerpt

Expand Energy Corporation: Swimming Downstream: EXE Acquires Gas Marketing Business

. Twin Eagle Q1 3.83 3.83

markets >5 Bcfpd of gas, bringing EXE's marketed volumes to 14Bcfpd pro forma, Q2E 0.99 1.13

and holds 2Bcfp of FT capacity, lifting EXE's pro forma FT capacity to 9Bcfpd. Last, Q3E 1.16 1.30

Twin Eagle also buttress EXE's storage business, adding 44Bcf of capacity, with EXE Q4E 2.36 2.17

12/26E 8.36 8.55

now holding 49Bcf of storage capacity. Twin Eagle leases and doesn't own any

12/27E 9.23 8.02

physical assets, and it's not a trading business, making it more capital-light, and

12/28E 10.92 8.85

aiding profitability.

Josh Silverstein

Synergies. EXE estimates ~$150mm of annual synergies that can be achieved by Analyst

YE28, with the broader platform offering upside opportunity through greater josh.silverstein@ubs.com

scale. These synergies are split between $!00mm that are expected to be realized +1-212-713 3513

by EXE achieving its existing marketing and commercial goals, with the remaining

Peyton Dorne

$50mm reflecting the gains achieved by expanding access to end users. Analyst

Capital Allocation. For deal financing, we estimate EXE has ~$800mm in cash on peyton.dorne@ubs.com

+1-212-713 4359

its B/S to help fund the acquisition, and with no current borrowings on the

revolver, and leverage of only ~0.5x, see EXE as well-positioned to fund the William Barber

purchase, but it does reverse some of the progress made on net debt reduction Associate Analyst

YTD. EXE will report its 2Q26 earnings after market close on Tuesday July 28th william.barber@ubs.com

+1-212-713 5553

(note), and we look for a ramp in buybacks to $400mm/quarter.

Highlights (US$m) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E