Expand Energy To Buy Twin Eagle For $1.25 Bln
(RTTNews) - Expand Energy Corporation (EXE), a natural gas producer, said on Monday that it has inked a deal to acquire Twin Eagle Holdings, N.A., LLC, a private asset-backed natural gas marketing and optimization business, for $1.25 billion from Five Point Infrastructure. Expand Energy will fund the acquisition, to be closed in the third quarter, through cash on hand and debt.
Expand Energy noted that the acquisition is initially expected to contribute over $200 million in annual EBITDA and $150 million per year of synergies by year-end 2028.
Michael Wichterich, Interim CEO of Expand Energy, said: "This transaction accelerates Expand's evolution into a leading integrated natural gas company with a commercial and marketing advantage compared to peers."
As of now, Twin Eagle markets over 5 billion cubic feet per day (Bcf/d) of natural gas and manages roughly 44 Bcf of storage capacity, and around 2 Bcf/d of firm transportation. On a pro forma basis, the combined portfolio will have around 14 Bcf/d of marketed volume supported by roughly 9 Bcf/d of firm transportation and 49 Bcf of storage capacity.
