Latest news with #AethonEnergy
Bloomberg
12 hours ago
- Business
- Bloomberg
Texas Oil Dynasty Targets Payout With $8 Billion Mitsubishi Deal
By and Pui Gwen Yeung Save Albert and Gordon Huddleston are on the cusp of cementing their place in a gilded lineage of Texas oil tycoons who amassed fortunes drilling across the world. The father and son — part of the H.L. Hunt family — are in advanced talks to sell the assets of Aethon Energy Management to Mitsubishi Corp. for nearly $8 billion, people familiar with the matter say.
Yahoo
15 hours ago
- Business
- Yahoo
Right Risk, High Return: Aethon Jumps on Elevated NatGas Prices
Private producers account for roughly 40% of U.S. oil and gas supply, and many are focused on continuing to grow. As M&A rumors swirl around the Haynesville Shale's Aethon Energy, the natural gas leader is among E&Ps in the play building on a strong portfolio and seeing opportunity despite widespread volatility. This interview with Gordon Huddleston, president and partner at Aethon Energy Management, is the first in a series that examine how private producers are navigating an uncertain market with cautious optimism. Deon Daugherty: How does the macro market uncertainty impact Aethon's plans for growth? Gordon Huddleston: We remain bullish on natural gas considering the broader macroeconomic factors driving demand growth, but we also see the potential for volatility and risk increasing. LNG and AI datacenters are supportive of demand and pricing, but without corresponding storage growth, price volatility is likely to increase in parallel. RELATED LNG, AI Fervor Raises M&A Interest for US Shale Gas—PwC DD: At the beginning of the year, Aethon was planning to drill new western Haynesville wells in 2025. Is that still the plan, and if so, how is it progressing? GH: We're very optimistic about the Western Haynesville wells we've brought online. We've seen significant improvements in our economics as we continue to better understand the geology and iterate our well designs. It's certainly an area we'll continue to focus on in the coming years, especially as demand and infrastructure improves in bringing that gas to market. We've drilled 500 wells in the Haynesville since 2018, so we have a lot of experience drilling hotter and deeper wells, and that experience prepared us for the challenges of the Western Haynesville. We try to be very measured in our approach from a development perspective—but higher pricing allows us to try things that we wouldn't necessarily be able to in a lower-price environment. Ideally, we're always spending some capital on areas like the Western Haynesville that are less understood but have the right risk/return profile as they will be important to meet future natural gas demand growth. DD: How do you differentiate Aethon from other private producers? GH: In addition to our scale, Aethon's vertically integrated upstream and midstream assets set us apart from other private producers and many public operators. Our owned midstream is a competitive advantage, providing additional uplift and pricing support along with our low-cost operations. Together, this vertical integration along with our extensive marketing activity and a unique approach to boxing in risk allow us to drive peer-leading margins through volatile market conditions. DD: What are your activity plans for the second half of this year and into 2026? GH: Aethon has evolved from a phase of rapid growth to another where we are focused on prioritizing investor returns while maintaining production volumes. Capital efficiency and optimization across our mature integrated upstream, midstream and marketing activities are the key factors driving our development plan today. That said, we've been consistent in saying that around $5/Mcf is where more overall growth of natural gas production could materialize. We are currently running five rigs and have the flexibility to add a rig or more if longer-term pricing signals justify it. We are also always looking for opportunities to acquire great assets that typically have the potential to be integrated into our existing midstream infrastructure. DD: What is the opportunity set presented by U.S. LNG exports? How will AI factor into Aethon's strategy? GH: LNG is the big story and is driving unprecedented demand growth for U.S. natural gas, and predominantly from the Haynesville. We're fortunate that Aethon is best positioned to meet this demand given our scale, proximity to the Gulf and peer-leading emissions profile. AI and data center demand represents an exciting tailwind, but it's dwarfed by new LNG offtake that we have greater certainty in realizing with each new train that comes online. However, there are still exciting opportunities we're discussing with datacenter developers and others—especially if you look at the regions best suited for these sites and how they align with gas producing basins. DD: What is Aethon's outlook on E&P consolidation? What are challenges, if any, with access to capital? GH: We expect to see additional consolidation, but there aren't many large pieces left on the board, especially in the Haynesville. Natural gas pricing has been trending favorably for deals and capital raising, creating the best financial environment we've seen for gas-focused businesses in quite a while. Fundamentally, there is an increasing flight to quality that prioritizes scale and risk mitigation. We believe investors will continue to value producers with higher margins, advantaged pricing exposure and high-quality inventory. RELATED ADNOC Explores $9B Acquisition of Aethon's Haynesville Assets—Report Reports: Mitsubishi Targeting Haynesville E&P Aethon in $8B Deal
Yahoo
4 days ago
- Business
- Yahoo
Mitsubishi Eyes $8 Billion Shale Gas Acquisition
Mitsubishi Corp. is about to acquire the shale and pipeline assets of Aethon Energy Management and is ready to pay up to $8 billion for them, Reuters has reported, citing unnamed sources. The deal would give Mitsubishi a solid presence in shale gas, the publication said, adding the assets were conveniently located close to the Gulf Coast and all the LNG plants already operating and getting built there. The negotiations on the deal are still ongoing and the acquisition may yet fall through, the Reuters sources said. Aethon Energy Management has been exploring options for its natural gas assets since last year. At the time, the assets were valued at some $10 billion. Originally, the company considered either a sale or an initial public offering for the assets, which include over 1,400 miles of pipelines. Mitsubishi Corp., a major player on the global LNG market, recently indicated it might become an investor in the Alaska LNG project—a priority energy project for the Trump administration. Mitsubishi is already one of the five joint venture partners in the LNG Canada project on the country's West Coast, which is nearing completion and set to ship out its first LNG export cargoes by the middle of this year. The Alaska LNG project would also be close to Japan and other Asian markets, Alaska Governor Mike Dunleavy and state officials said as they toured north Asia earlier this year in a bid to attract Asian investors in the project. The Japanese conglomerate, meanwhile, hold stakes in LNG projects around the world, including Russia, Malaysia, Oman, Australia, and the United States. It annual LNG production from all these assets averages 13 million tons, per Reuters. The company recently boosted its stake in Malaysian Petronas's LNG complex—one of the world's largest single LNG production facilities. By Irina Slav for More Top Reads From this article on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Mitsubishi eyes $8bn acquisition of Aethon Energy Management
Mitsubishi is reportedly in advanced discussions to acquire the US shale production and pipeline assets of Aethon Energy Management for an estimated $8bn (Y1.16bn), reported Reuters, citing a source familiar with the matter. The Aethon assets, primarily located in the Haynesville shale formation in Louisiana and east Texas, are one of the largest privately held gas producers in the US. Aethon is backed by investment firm RedBird Capital Partners and Canada's Ontario Teachers' Pension Plan, which hold significant stakes in the assets. The acquisition would provide the Japanese conglomerate with significant natural gas operations near the US Gulf Coast, complementing the energy export facilities currently under development in the region. The ongoing talks between Mitsubishi and Aethon were disclosed by a source who requested anonymity due to the confidential nature of the negotiations. The source also noted that there is no certainty that the deal will be finalised. In response to inquiries, Mitsubishi, Aethon, RedBird and the Ontario Teachers' Pension Plan all declined to comment on the matter. Mitsubishi released a statement regarding the acquisition, stating: 'Reports in certain news media, regarding Mitsubishi Corporation being in advanced negotiations for the acquisition of US-based Aethon Energy Management, have been circulated. 'At this point, however, Mitsubishi Corporation has not made any decision that is consistent with the contents of those reports. Should any matter requiring disclosure be decided, we will make an announcement in a timely and appropriate manner.' Mitsubishi has a diversified portfolio with equity in multiple liquefied natural gas (LNG) projects globally, including in Australia, Canada, Malaysia, Oman, Russia and the US. The company's total equity LNG production is approximately 13 million tonnes per year. In November last year, Aethon was reportedly considering options for the sale of its US natural gas production and midstream assets, valued at approximately $10bn. "Mitsubishi eyes $8bn acquisition of Aethon Energy Management" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
4 days ago
- Business
- Yahoo
Mitsubishi reportedly in talks to buy Aethon Energy US assets for $8 billion
-- Mitsubishi Corp is negotiating to purchase the U.S. shale production and pipeline assets of Aethon Energy Management for approximately $8 billion, according to a Reuters report on Monday. If completed, the acquisition would provide the Japanese conglomerate with a substantial natural gas operation located next to the U.S. Gulf coast and its developing energy export facilities. The discussions between Mitsubishi and Aethon are still in progress, the report added, and there is no guarantee that an agreement will be reached. While Aethon, a U.S. energy-focused investment firm, owns and operates the assets under consideration, other significant stakeholders include RedBird Capital Partners and Ontario Teachers' Pension Plan from Canada. Related articles Mitsubishi reportedly in talks to buy Aethon Energy US assets for $8 billion Analysts start with bullish ratings on Hinge Health on growth potential UBS starts coverage on packaged food stocks with cautious tone, Sell on Freshpet 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
