Natural gas cycle ignition: Could EXE be the next triple-bagger?

Let’s continue examining U.S. natural gas companies. If the market has been focused on AI and chips over the past few years, the truly undervalued theme emerging now may well be—natural gas. Why? Because natural gas is currently at a very delicate inflection point: • Low prices + imminent demand surge (LNG + AI-related power demand) What does this mean? A classic early-stage scenario: “cycle bottom + demand inflection.” At this stage, selecting the right stock matters more than ever. I. EXE: The ‘King of Natural Gas’? Expand Energy Corporation (ticker: EXE) is currently the largest independent natural gas producer in the U.S. (by daily production). Many may ask: Didn’t we just discuss EQT Corporation yesterday as the industry leader? Here’s the key distinction: EQT produces *purely natural gas*, whereas EXE’s production volume includes natural gas *plus oil and natural gas liquids (NGLs)*. II. From bankruptcy to dominance: EXE’s turnaround story EXE’s predecessor was Chesapeake Energy: • Founded: 1989 • IPO: 1993 • 2020: Filed for Chapter 11 bankruptcy protection (approx. $7 billion in debt) • 2021: Completed restructuring The true turning point came on: October 1, 2024 — acquisition of Southwestern Energy (SWN) • All-stock merger • Enterprise value ~$24 billion • Rebranded as Expand Energy (EXE) This transaction effectively catapulted EXE into the industry’s top tier. III. Core assets: America’s most premium natural gas acreage EXE’s resource portfolio is strategically focused: • Marcellus (Appalachia) • Haynesville (~745,000 net acres) • Eagle Ford (liquid-rich resources) These three basins constitute the absolute “lifeblood” of U.S. natural gas production. IV. Revenue structure: Nearly identical to EQT Production mix: • 92% natural gas • 8% crude oil + NGLs 2025 revenue breakdown: • Natural gas: $10.3 billion • NGLs: $860 million • Crude oil: $450 million • Hedging gains: $550 million Conclusion: EXE and EQT are fundamentally alike—both are “pure-play natural gas” companies whose core business is selling natural gas! V. 2025 financials: A textbook cash-flow machine Key metrics: • Net income: $1.819 billion • Adjusted net income: $1.467 billion • Adjusted EBITDAX: $5.078 billion • Operating cash flow: $4.575 billion • Daily production: 7.18 Bcfe/d • Shareholder returns: $865 million (dividends + buybacks) • Debt optimization: Total debt reduced by ~$660 million

From applications to chips: Is energy the ultimate frontier of AI?

This is a leading solar panel manufacturer, renowned for its thin-film solar panel technology. Sunrun Inc. (RUN) Sunrun is one of the largest residential solar, energy storage, and energy services companies in the United States. SolarEdge Technologies, Inc. (SEDG) SolarEdge provides intelligent energy technologies, including solar inverters and energy storage systems. NextEra Energy, Inc. (NEE) A power and energy infrastructure company—and also one of the world’s largest wind and solar power generators. Vestas Wind Systems A/S (VWDRY) Although headquartered in Denmark, Vestas’ American Depositary Receipts (ADRs) enable U.S. investors to trade its shares. Vestas is a world-leading wind turbine manufacturer. Albemarle Corporation (ALB) One of the world’s largest lithium producers, engaged in lithium mining and processing—the critical raw material supplier for battery manufacturing. We observe divergent performance across clean-energy stocks. Why? Because every segment of new energy—including photovoltaics, lithium batteries, and wind power—relies heavily on massive inputs of traditional energy. Without coal, oil, and natural gas as foundational support, so-called ‘the Nth Industrial Revolution’ would be like water without a source—or a tree without roots. In the U.S., renewable energy has likewise been elevated to high strategic priority—but reality forces a pivot back toward natural gas, coal, and nuclear power. The U.S. natural gas sector Coal-fired power has long been viewed by the U.S. government as a major pollution source; reducing coal’s share in electricity generation remains a central objective of the Biden administration. In 2016 alone, the U.S. retired 531 coal-fired units totaling 56 GW of capacity; from 2022 to 2023, another 22.3 GW of coal generation was decommissioned. By the end of 2030, over 80 GW of coal-fired capacity is projected to be retired. Currently, natural gas appears to be the only viable alternative. Since the shale gas revolution, natural gas has accounted for roughly 40% of U.S. electricity generation—making it the undisputed backbone of the power system. When wind and solar cannot yet deliver sufficient, reliable energy in the near term, natural gas remains the sole dependable lifeline for America’s energy system. U.S.-listed natural gas stocks include: Cheniere Energy, Inc. (LNG) Cheniere is a leading player in the liquefied natural gas (LNG) industry, specializing in LNG liquefaction and export. EQT Corporation (EQT) EQT is among the largest U.S. natural gas producers, primarily developing the Marcellus and Utica shale formations. Range Resources Corporation (RRC) An independent natural gas, natural gas liquids (NGL), and oil company, with primary operations in the Marcellus Shale. Cabot Oil & Gas Corporation (COG)

EQT to Buy Range Resources, Creating Largest US Gas Producer

17 hours ago

EQT Corp. agreed to acquire Range Resources Corp. in an all-stock deal valued at approximately $12.8 billion, forming the largest vertically integrated U.S. natural gas producer. The combined entity will produce over 9 billion cubic feet daily and expects $325 million in annual savings.

bloomberg

2026-10-26

EQT, Range Resources Tie Up in $50 Billion Deal to Create US Gas Giant

2026-10-26

EQT to Buy Range Resources, Creating Largest US Gas Producer

EQT to Buy Range Resources, Creating Largest US Gas Producer

FAQ