Expand Energy Corporation (NASDAQ:EXE), a $22.69 billion market cap company specializing in crude petroleum and natural gas, has successfully completed an underwritten public offering of $750 million in senior notes with a 5.700% interest rate, maturing in 2035.
The offering, registered under the Securities Act of 1933, was initially filed on November 20, 2024, and became effective immediately. The terms of the senior notes were detailed in a prospectus supplement dated November 21, 2024, which was filed with the SEC on November 22, 2024.
The notes, issued under an indenture agreement with Regions Bank as trustee, are unsecured and rank equally with Expand Energy's other unsecured senior debt. They are structurally subordinated to any debt that the company's subsidiaries may incur, as the notes are not guaranteed by these entities.
In other recent news, Expand Energy has seen several adjustments to its stock price target following its third-quarter financial performance and the completion of its merger with Southwestern Energy (NYSE:SWN). RBC (TSX:RY) Capital Markets increased the stock's price target to $116, citing the company's strategic position as the leading producer of natural gas in the United States.
Analyst firms including Citi, Mizuho (NYSE:MFG) Securities USA, and Stephens have maintained or upgraded their ratings on Expand Energy, with increased price targets based on the company's strategic positioning and operational planning.
Expand Energy's third-quarter earnings report showed an adjusted cash flow of approximately $337 million, aligning with consensus estimates. The company has also provided preliminary guidance for fiscal year 2025, projecting average production around 7.0 billion cubic feet equivalent per day and capital expenditures estimated at $2.7 billion.
The company has introduced a new cash return framework aiming to balance debt reduction and cash returns to shareholders while preserving the current base dividend yield of around 4.2%. Following a recent deal, Expand Energy has increased its target for anticipated synergies by about 25% to $500 million.
In terms of analyst insights, Mizuho Securities USA anticipates the company's free cash flow in 2025 to reach $1.6 billion, a figure significantly higher than previous estimates and well above analysts' consensus. Stephens raised the company's price target to $86, while BofA Securities initiated coverage with a Buy rating and a price target of $114.
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