-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Our 12-month target of $119, raised by $8, reflects a combination of relative valuation and DCF model analyses. On a relative basis, we apply a 4.7x multiple of enterprise value to projected 2027 EBITDA, in line with EXE's historical forward average in the short period following the formative merger of CHK and SWN. This approach yields a value of $103 per share. Meanwhile, our DCF model - using free cash flow growth of 7.1% per year for 10 years, 2% thereafter, discounted at a WACC of 5.8% - yields a value of $135 per share. We cut our 2026 EPS estimate by $0.17 to $8.97 and reduce 2027's by $0.43 to $9.48. Although natural gas prices have moderated, we note that EXE took advantage of stronger pricing in Q1 to reduce debt on the balance sheet. As of March 31, it sported a net debt to capital ratio of just 11.5%, considerably better than gas-focused E&P peers averaging 25%. Although natural gas spot prices are weak at the moment, EXE is 70% hedged for the next six months.