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Kimmeridge Texas Gas (KTG), an affiliate of investment firm Kimmeridge, has signed a definitive agreement to acquire certain upstream assets from an undisclosed private seller in a bid to expand its footprint in the Eagle Ford shale play.
The assets, which include approximately 30,000 acres and current production of 65 million cubic feet equivalent per day (MMcfepd), have a strong degree of overlap with KTG’s existing 75,000-acre position in Eagle Ford, offering significant scale and operational synergies, Kimmeridge said in a news release Wednesday. The transaction value was not disclosed.
KTG said it anticipates continuing its multi-rig program focused on the Eagle Ford and Austin Chalk in the Gulf Coast region, with a target of delivering over 500 MMcfepd net on a pro forma basis in 2026.
Kimmeridge also signed a definitive multi-year transportation agreement with Kinder Morgan Texas Pipeline LLC to secure midstream takeaway for its Eagle Ford natural gas, enabling KTG to deliver natural gas across multiple liquefied natural gas (LNG) facilities along the Gulf Coast.
Combined with Kimmeridge’s previously announced investment in Commonwealth, an LNG export terminal project strategically located on the Calcasieu River at the Gulf of Mexico near Cameron, Louisiana, Kimmeridge said the investments deepen its South Texas foothold, and will position KTG to “deliver natural gas/LNG from the wellhead to the water”.
Our acquisition of these upstream assets and agreement with KMTP will meaningfully advance KTG’s ambitions of becoming fully integrated from source to sink, providing reliable, secure, and clean energy to global markets”, Kimmeridge Co-Founder and Managing Partner Ben Dell said. “Kimmeridge has always sought to be a pioneer in the energy space, first with the ideation and implementation of a new E&P [exploration and production] business model, followed by the formation of Civitas Resources, Colorado’s first carbon neutral energy company, and now as we build a leading international LNG platform. Through our investments in South Texas, we believe we will be able to deliver net zero LNG, where all Scope 1 and 2 emissions will be offset by a combination of mitigation, sequestration, and carbon removal”.
Solar Energy Investment
In September, Kimmeridge announced an investment of $15 million in US Light Energy, a distributed generation solar developer specializing in community solar projects across the USA. The investment was made through Kimmeridge Carbon Solutions, a dedicated fund focused on investments at the front end of the carbon abatement cost curve, according to an earlier news release.
“We couldn’t be more excited to partner with Kimmeridge”, US Light Energy CEO Mark Richardson said. ”Kimmeridge’s reputation as a proven, value-oriented investor with strong knowledge of the energy sector aligns seamlessly with our vision. The partnership will advance our mission of providing clean, community-driven solar energy solutions in New York, while empowering expansion into other states with burgeoning community solar programs”.
“US Light Energy is ideally situated, with a talented team, deep expertise, and a robust portfolio of community solar projects”, Kimmeridge Managing Partner Henry Makansi said. “We are excited to partner with them on this journey, leveraging their expertise in distributed generation solar to create long-term value for all stakeholders”.
Kimmeridge is an alternative asset manager specializing in the energy sector. The Kimmeridge Carbon Solutions fund focuses on sustainable and value-driven investments in the energy sector, and has a made a series of targeted investments, including Chestnut Carbon, Landgate, and Common Energy.
To contact the author, email rocky.teodoro@rigzone.com
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