Would AvX Thor be able to trigger his penetrating damage from his trait via Energy Explosion? I've heard a lot of mixed responses when people discuss what occurs during an Energy Explosion.

Energy Explosion: When this character is given a ranged combat action and deals damage, an area of effect may include all untargeted characters that are adjacent to one or more hit targets. Hit targets are dealt damage normally, other hit characters are dealt 1 damage for each# printed on this character’s base.

Thor:
CALL THE STORM & TEAR OPEN THE SKY:#Thor can use Super Strength. When Thor targets and hits more than 1 opposing character with an attack, targets of the attack are dealt penetrating damage.

This has been answered several times.

The characters in the area of effect of EE are not targeted. Only figures that are targeted are dealt penetrating damage.

no.

CALL THE STORM & TEAR OPEN THE SKY:#Thor can use Super Strength. When Thor targets and hits more than 1 opposing character with an attack, targets of the attack are dealt penetrating damage.

the answer is right here in the text. Only those he targets can be dealth penetrating damage. EE is not a targetted attack, it is an AoE

And since the EE spash doesn't target it wouldn't count for the required two targets to deal penetrating damage.

Thank you!

yes and no, you just have to make sure to target atleast 2 characters

This is only correct for the two characters targeted by the attack, not for the area of effect splash damage of EE. As the characters in the AoE were not targeted the damage to them is not penetrating.

Now a character like Demogoblin, on the other hand, can still trigger his powers on Energy Explosion area of effects, correct? Because his powers state he just needs to hit, not target with an attack.

BLACK PUMPKIN BOMBS OF FEAR:#Demogoblin can use Energy Explosion. When he does, hit characters modify their defense value by -1 until your next turn.

REPENT!:#When Demogoblin hits an opposing character, that character's controller chooses one: give that character two action tokens; or that character's defense power is countered until your next turn.

Yes. The difference is those powers affect hit characters rather than targeted characters. Characters in an AoE aren't necessarily targeted, but if you roll high enough, they will still be hit.