Expand Energy: Southwestern Acquisition Synergies, Record Free Cash Flow Outlook, and Balanced Capital Allocation Underpin Buy Rating

William Blair analyst Neal Dingmann has maintained their bullish stance on EXE stock, giving a Buy rating today.

Neal Dingmann has given his Buy rating due to a combination of factors tied to Expand Energy’s strong recent performance and favorable outlook. He expects the company to deliver robust fourth-quarter 2025 results and to carry that momentum into 2026, supported by meaningful free cash flow growth that should reach record levels next year. The benefits from the Southwestern acquisition are enhancing scale and operating flexibility, allowing Expand to optimize production, capitalize on improving pricing, and generate one of its strongest free cash flow quarters while keeping capital spending in check.

Neal also views the company’s strategic focus as a key driver of upside, highlighting management’s intent to pursue accretive M&A and projects that preserve operational optionality, including power-related initiatives. Capital allocation is set to become more balanced, with less emphasis on variable dividends and more attention on debt reduction, opportunistic share repurchases, and a steadily rising base dividend, which he sees as supportive of shareholder value. Additionally, disciplined growth through targeted land leasing and selective bolt-on acquisitions positions Expand to navigate shifting natural gas basin dynamics and volatility, reinforcing his conviction in the stock’s risk-reward profile and justifying a Buy recommendation.

Dingmann covers the Energy sector, focusing on stocks such as Northern Oil And Gas, Ovintiv, and Coterra Energy. According to TipRanks, Dingmann has an average return of 0.1% and a 44.44% success rate on recommended stocks.

In another report released today, Stephens also maintained a Buy rating on the stock with a $140.00 price target.