Expand Energy Corp. (EXE): Announces Plans to Acquire Twin Eagle for $1.25 bn

Research evidence excerpt

Expand Energy Corp. (EXE): Announces Plans to Acquire Twin Eagle for $1.25 bn

Goldman Sachs Expand Energy Corp. (EXE)

Transaction Details

Commercial and Marketing Strategy. EXE expects to grow its natural gas marketing

business by 5 Bcf/d through the pending transaction, creating a pro forma portfolio of

14 Bcf/d. As a result of the transaction, EXE is raising and accelerating its marketing and

commercial free cash flow target by 50% to $750 mn in incremental free cash flow

relative to the prior target of $500 mn. EXE expects the additional annual EBITDA and

synergy potential associated with this transaction will drive the upside to incremental

free cash flow target. EXE expects to broaden its footprint for its natural gas marketing

business, adding ~44 Bcf of storage capacity for a pro forma storage capacity of 49 Bcf.

This transaction also is expected to add ~2 Bcf/d of firm transport, leaving EXE with ~9

Bcf/d of pro forma firm transport. EXE noted this transaction would extend its access to

premium demand centers across the US and Canada, and EXE should reach ~90% of the

natural gas market.

Transaction Details and Synergies. EXE expects to finance the $1.25 bn consideration

for the acquisition of Twin Eagle with a mix of cash on hand and borrowings under the

company’s revolving credit facility. The acquisition is expected to close in 3Q26, subject

to customary closing conditions and regulatory approval. EXE expects the pending

transaction to be immediately accretive and contribute >$200 mn of projected annual

EBITDA, and EXE is targeting $150 mn in annual synergies by YE2028 which would grow

the EBITDA contribution to $350 mn as synergies are realized. On the synergies, EXE

expects to realize $100 mn in synergies through the acceleration of the existing goal of