Artificial intelligence (AI) is driving the need for more data centers, with the market projected to grow to $1,105.28 billion by 2030. However, this growth is putting pressure on U.S. electric grids, leading to potential emergency measures. Expand Energy Corporation (EXE) is a natural gas producer poised to benefit from this surge in energy demand.
EXE, based in Oklahoma, produces and markets natural gas, oil, and NGLs. The company offers a forward annual dividend of $2.30, with a current stock price of $101.09. EXE has returned $585 million to shareholders in 2025 and boasts strong financial metrics compared to industry peers.
Expand Energy’s recent financials show strong cash generation and profitability. The company reported net cash provided by operating activities of $1,322 million, with adjusted net income of $265 million. EXE also highlighted improved performance resulting in $425 million of additional free cash flow for 2025.
With a focus on disciplined capital allocation, EXE returned $585 million to shareholders in the first half of 2025. The company runs an average of 11 rigs, drilling 49 wells, and bringing 59 online, producing about 7.2 Billion Cubic Feet Equivalent (Bcfe) per day, primarily natural gas.
Expand Energy secured a $3.5 billion unsecured revolving credit agreement with J.P. Morgan Chase Bank, providing financial flexibility. The facility, expandable to $4.5 billion, matures in five years and supports funding for working capital, drilling, and infrastructure upgrades.
Analysts expect a significant increase in earnings for EXE, with estimates of $0.91 in Q3, $1.67 in Q4, $5.53 for full-year 2025, and $9.01 for 2026. This reflects a strong growth trajectory aligned with the increasing demand for natural gas from AI-driven data centers.
EXE’s leaner capital plan and increased synergy capture position the company for accelerated profitability. Analyst sentiment is overwhelmingly bullish, with a consensus “Strong Buy” rating and an average price target of $130.85, implying a 29% upside potential from the current price.
For investors seeking exposure to AI-driven energy demand, Expand Energy appears to be a compelling choice. With a focus on cash flow, accelerating earnings, and positive analyst outlook, EXE is well-positioned to benefit from the growing demand for natural gas in the AI sector.
Read more at Yahoo Finance: You’ve Likely Never Heard of This Natural Gas Stock, But It Could Be the Best Way to Play AI in 2026