Expand Energy Corporation, the largest natural gas producer in North America, is expanding its footprint with a $1.25 billion acquisition of Twin Eagle's gas marketing and storage business, but the growth story is facing headwinds from a sharp decline in natural gas prices. The company, held by 70 hedge funds with a total investment value of almost $2.7 billion at the end of Q2 2026, down from 81 funds and $3.1 billion in the prior quarter, expects the Twin Eagle deal to add more than $200 million in EBITDA in the first year, growing to $350 million annually within two years. Expand Energy has also raised its annual free cash flow target for its marketing and commercial business by 50% to $750 million, with the transaction expected to close in the third quarter. However, the US Henry Hub natural gas price has fallen over 40% since the start of 2026 due to milder weather and strong production, and EXE shares are down over 14% year-to-date. The company's Q2 revenue declined almost 10% year-over-year, missing Wall Street estimates, and analysts at Johnson Rice, Barclays, and Benchmark have lowered their outlooks on the stock.
Expand Energy CorporationNatural gas prices down over 40% and Q2 revenue missed estimates, hurting outlook
Chevron CorpAcquired by Expand Energy for $1.25 billion, adding EBITDA and free cash flow
