Victory Capital Management Inc. — Sycamore Mid Cap Value Equity on Expand Energy Corp.
Thesis
Expand Energy delivered first-quarter revenue and earnings above expectations and repurchased $150 million of stock. Shares nevertheless weakened after management's capital-spending outlook for the remainder of 2026 disappointed investors. Sentiment was also hurt by the controller's resignation, which left the CFO temporarily handling additional accounting responsibilities. Sycamore says its thesis remains intact.
“Despite the recent performance, our theses for both DVN and EXE remain intact.”
Key risks
- Lower-than-expected capital spending outlook
- Accounting leadership disruption following the controller's resignation