Aethon Completes Acquisition of Tellurian Upstream and Midstream Assets
July 01 2024 - 7:00AM
Business Wire
Aethon Energy Management LLC (Aethon) today announced the
successful closing of Aethon’s acquisition of Tellurian’s
integrated upstream assets. Aethon’s footprint across its Fund II
and Fund III assets in the Haynesville Shale now includes
approximately 375,000 net acres with gathering and treating
capacity of over 3 Bcf/d.
Concurrent with the acquisition, Aethon also signed a Heads of
Agreement (HOA) for two metric tons per annum (mtpa) of liquified
natural gas (LNG) from the Driftwood LNG project.
“As a private equity firm and operator, we are excited to
enhance our strategic footprint by integrating Tellurian's upstream
and midstream assets into our extensive Haynesville position,” said
Gordon Huddleston, President and Partner of Aethon Energy. “Our
goal is to generate compelling returns while supporting the
communities we operate in as we make progress towards providing net
zero natural gas to both domestic and international customers. We
continue to work with Tellurian on a long-term sale and purchase
agreement for two mtpa of LNG and believe in the many benefits that
low emission exports have for the broader energy transition.”
“This transaction is a significant step in securing our balance
sheet and progressing Driftwood,” added Tellurian Executive
Chairman Martin Houston. “The partnership between Aethon and
Tellurian is vital as we continue securing buyers for Driftwood’s
remaining capacity and advance its development. Our agreement
validates the role of U.S. LNG as the global transition fuel and in
providing energy security to America’s partners around the
world.”
Citi and Truist Securities served as financial advisors to
Aethon, and Gibson Dunn as legal counsel. Lazard was financial
advisor to Tellurian, and Akin Gump provided legal counsel.
About Aethon Energy Management
Aethon Energy Management is a private investment firm and
registered investment adviser that manages closed-end funds focused
on acquiring, operating, and developing onshore energy resources
across North America. Headquartered in Dallas, TX, Aethon has
deployed more than $9 billion over a 34-year track record while
generating attractive returns for its fund investors across
multiple commodity price cycles. Aethon’s vertically integrated
strategy provides capital efficient growth, combined with
disciplined risk management to support cash flow assurance. Today,
Aethon is a leading, low-emission operator and one of the largest
private natural gas producers and suppliers to LNG facilities in
the U.S., including more than 1,700 miles of midstream
infrastructure. Please visit www.AethonEnergy.com for more
information.
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Clayton McGratty Phone: +1 (214) 356-7959 Email:
cmcgratty@aethonenergy.com
Andrew Von Kerens Phone: +1(817) 456-2280 Email:
avonkerens@aethonenergy.com