TGNR adds East Texas gas assets in $525-million deal with Chevron
TG Natural Resources LLC (TGNR) has acquired 70% interest in East Texas gas assets from Chevron USA Inc., a subsidiary of Chevron Corp., for $525 million.
Chevron will hold a 30% non-operated working interest in a joint venture with TGNR and an overriding royalty interest in the assets.
The deal adds over 250 gross locations to TGNR’s existing Haynesville inventory (assuming four wells per section), extending inventory life beyond 20 years at the current development pace, not counting the Bossier and Cotton Valley plays which are commercial at current prices, the company said in a release Mar. 31.
According to its website, Chevron holds about 72,000 net acres (283 sq km) in the Haynesville shale in East Texas as of Dec. 31, 2024.
TGNR said the deal’s acreage is “relatively undrilled and held by shallower production, allowing parent-child effects between wells to be mitigated.”
The company expects to realize synergies of over $170 million during the assets’ development.
Chevron, in a separate release Mar. 31, said the deal is expected to generate over $1.2 billion in value to the company at current Henry Hub prices through the multi-year capital carry, retained working interest, and overriding royalty interest.
For Chevron, the deal with TGNR supports its plans to divest $10-15 billion of assets by 2028.
TGNR is focused on the Ark-La-Tex region of East Texas and Northern Louisiana. It is owned by TG East Texas Resources LLC, a wholly owned subsidiary of Tokyo Gas America, and CCI US Asset Holdings LLC, a wholly owned subsidiary of Castleton Commodities International LLC.
The purchase price is comprised of $75 million paid in cash and $450 million as a capital carry to fund Haynesville development.
Mikaila Adams | Managing Editor - News
Mikaila Adams has 20 years of experience as an editor, most of which has been centered on the oil and gas industry. She enjoyed 12 years focused on the business/finance side of the industry as an editor for Oil & Gas Journal's sister publication, Oil & Gas Financial Journal (OGFJ). After OGFJ ceased publication in 2017, she joined Oil & Gas Journal and was named Managing Editor - News in 2019. She holds a degree from Texas Tech University.
