2Wk·

Subsequent purchase of the US gas giant 🤞🏼🤑🤞🏼

If the deal between the USA and the EU holds up in anything like its current form, this company will benefit significantly from the LNG supply contracts.

29.07

CHK

Expand Energy

Bought x100 at $99.70

$9,970.00

Seventrader

@7Trader

8Mon·

New addition Expand Energy
$CHK (-0.37%)

Expand Energy was recently formed through the merger of Chesapeake Energy and Southwestern Energy. It is now one of the largest natural gas producers in the USA.

Expand Energy is active in the field of fracking, particularly in the extraction of natural gas. The company uses hydraulic fracturing (fracking) to extract gas from shale formations and other unconventional reservoirs. This process is a key part of their strategy as it enables them to efficiently extract large quantities of natural gas and maintain their production capacity.

The original companies before the merger:

Chesapeake Energy: A pioneer in the shale gas revolution, focused on the exploration and production of natural gas. It was a leader in the development of unconventional energy resources and was an early investor in the export of liquefied natural gas (LNG).

Southwestern Energy: Strong presence in shale gas areas with a stable base in the exploration and production of natural gas and crude oil.

The new company Expand Energy is largely controlled by institutional investors. The largest shareholders include:

Vanguard Group, Blackstone Inc. and Blackstone, BlackRock Inc. and T. Rowe Price

The merger has not only increased operational efficiency, but has also positioned Expand Energy to capitalize on growing global energy demand and LNG exports.

Donald Trump pledged extensive support for fracking as part of his 2024 election campaign. His key promises include the expansion of fracking activities, particularly on federal land, and the simplification of approval procedures for energy projects.

I can imagine increasing the position twice more in 2025.

😎💲🤞🏼

20.11

CHK

Expand Energy

Bought x50 at $98.26

$4,912.95

7 Comments

Chris@Multibagger

2Wk

For the past 2 months I have been relying more on $VG

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Seventrader@7Trader

2Wk

@Multibagger I started with this title in November 2024.
Thanks for your tip, I'll be happy to take a look.

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Gomerdoc@Gomerdoc

2Wk

Wait and see. Because the yellow Donald has not considered one thing: the super deal on energy supply covers roughly the quantities that would have been bought anyway, DEAL or no DEAL.

The EU had already decided beforehand not to buy any more Russian energy sources from 2027. This will also essentially be replaced by US supplies. In this respect, this is nothing new and nothing he can put on his credit side.
To a certain extent, Ursula has left him in the dark about this, or has pulled the wool over his eyes.

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Seventrader@7Trader

2Wk

@Gomerdoc For me, the title has been on the shopping list since his election. Customs deal or not. His presence in the White House can have a positive impact on this title.

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K@TechNav

2Wk

What I don't like is the short interest of 3.20%, and above all the dilution of shareholders through the constant issue of new shares. EPS has also fallen by -70%! . Even if they rise to 130$ or 150$ the shareholders are in a negative yield at the end ⚠️

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Seventrader@7Trader

2Wk

@TechNav na no na ned.
In October 2024, Chesapeake Energy Corporation and Southwestern Energy Company were merged to form a new company, Expand Energy Corporation.

In this type of merger, where one company pays for another primarily with its own shares and then reorganizes it into a new company, it is very likely that share dilution has occurred. The shareholders of the originally separate companies (Chesapeake and Southwestern) received shares in the new company (Expand Energy) in exchange for their old shares.

The aim is that the increased overall value of the merged company and the synergies achieved will more than compensate for this dilution in the medium term.
The new, larger and more efficient company is expected to generate a higher value per share than the individual companies would have done before the merger.

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K@TechNav

2Wk

@7Trader This must be reflected in EPS. If this does not happen for the time being, the current price is not justified.

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