Tokyo Gas subsidiary TG Natural Resources (TGNR) has acquired a 70% stake in Chevron U.S.A.’s (CVX) East Texas gas assets for $75MM in cash and $450MM in capital carry, enabling long-term development in the Haynesville formation.
The deal encompasses 71,000 net contiguous acres in Panola County, TX that are largely unexplored. CVX’s Haynesville acreage was one of the few remaining undeveloped parcels in the region, allowing TGNR to develop the plot with ideal well spacing.
The additional acreage extends TGNR’s drilling inventory beyond 20 years and supports Tokyo Gas’ strategy of bolstering its position in US shale near export facilities. This transaction follows TGNR’s $2.7B acquisition of Rockcliff last year, and comes amid heightened merger and acquisition (M&A) activity in the Haynesville.
East Daley Analytics shares a similar view of the value of the Haynesville, as the basin is well positioned to supply the coming waves of LNG growth. In the Macro Supply & Demand Report, we forecast the Haynesville to grow 1.2 Bcf/d over the next year, with ~20% of that growth coming from East Texas acreage (see figure).
M&A is heating up ahead of the turnaround. Citadel recently acquired Paloma Natural Gas for $1.2B, setting a high benchmark for the basin. Aethon, a private operator with over 2 Bcf/d of production across Louisiana and East Texas, could be a future acquisition target. The company has significant assets in the Western Haynesville, where wells report initial production (IP) rates above 30 MMcf/d, and could command over $7B based on recent transactions.
As consolidation accelerates, the Haynesville remains a hotspot for deals shaping the future of US natural gas production. - Alex Gafford. Tickers: CVX.
Get the FERC Intrastate Pipeline Data
Introducing East Daley’s latest data file: FERC 549D Intrastate Contract Data. This new offering delivers contract shipper data for intrastate pipelines — scrubbed and ready to use. Use the 549 data to identify which intrastate pipelines have available capacity, understand pipeline rate structures, gain insights into shippers, and spot contract cliffs and opportunities for higher rate renewals. Reach out to East Daley to learn more.
NEW NGL Webinar – Fueling the NGL Surge: Growth Across Key Basins, Infrastructure, and Midstream Advantage
Join East Daley on April 16th at 10 AM MST for an in-depth webinar on the NGL market. In Fueling the NGL Surge: Growth Across Key Basins, Infrastructure, and Midstream Advantage, we will cover basin growth and key producers, infrastructure and midstream players, and explore the growing linkage between crude oil, natural gas and NGL markets. Sign up now to attend.
Data Center Demand Monitor - Available Now!
Introducing Data Center Demand Monitor by East Daley Analytics. This is your go-to source for tracking data center projects and demand. We monitor and visualize nearly 300 US data center projects. Use Data Center Demand Monitor to forecast demand, identify pipeline corridors and track data center projects. — Request your demo now of the Data Center Demand Monitor!
The Daley Note
Subscribe to The Daley Note (TDN) for midstream insights delivered daily to your inbox. The Daley Note covers news, commodity prices, security prices and EDA research likely to affect markets in the short term.
-1.png)
-1.png)
-3.png)