Mitsubishi Corp in talks to acquire Aethon Energy Management

Mitsubishi Corp in talks for $8 billion US shale acquisition, source says

By Reuters  June 16, 2025

June 16 (Reuters) - Mitsubishi Corp is in talks to acquire the U.S. shale production and pipeline assets of Aethon Energy Management for roughly $8 billion, a person familiar with the matter said on Monday.

The deal, should it be struck, would give the Japanese conglomerate a substantial natural gas operation adjacent to the U.S. Gulf coast and the energy export facilities being developed along it.

Talks between Mitsubishi and Aethon are ongoing, said the source, who cautioned that there was no guarantee a transaction would be agreed and spoke on condition of anonymity to discuss confidential deliberations.

While the assets are owned and operated by U.S. energy-focused investment firm Aethon, fellow money managers RedBird Capital Partners and Canada's Ontario Teachers' Pension Plan also hold sizable stakes.

Aethon and RedBird declined comment. OTPP did not immediately respond to a comment request. Mitsubishi could not be reached outside of normal business hours in Japan.

The upstream assets of Aethon, which primarily focus on the Haynesville shale formation in Louisiana and East Texas, constitute one of the largest privately held U.S. gas producers.

Reuters reported in November that Aethon was exploring options for its operations, which also include more than 1,400 miles (2,250 km) of pipelines across the Haynesville basin and Wyoming, where Aethon also has some production assets.

Bloomberg News earlier on Monday reported the talks between Mitsubishi and Aethon, citing people familiar with the matter.

Reporting by David French in New York; Editing by Alison Williams

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Permalink Reply by Alan Herrington on June 16, 2025 at 10:15

If this deal goes through, we will likely have at least four major players in the emerging Western Haynesville play:

Comstock

Expand (Chesapeake)

Mitsui

Mitsubishi

Comstock is well established, with more than 520,000 net acres leased, primarily in Robertson, Leon, Freestone, and Anderson Counties.


Expand is currently leasing in Houston, Leon, and Anderson Counties.

Mitsui is leasing in Leon, Freestone, and Anderson.

Permalink Reply by Skip Peel - Mineral Consultant on June 16, 2025 at 10:27

Thanks, Alan.  That could be the main reason for Mitsubishi to pursue Aethon.  Soon maybe Mitsubishi will be referring to their Louisiana leasehold as "legacy".

Permalink Reply by Alan Herrington 13 hours ago

Looks like the land rush has begun here in Anderson County Texas.! Friend of mine was contacted by a landman today who was looking to lease his his minerals located in southwestern Anderson County.  He stated that he was leasing for Expand.  Initial offer was $750 bonus and 25% royalty...said he could go higher on bonus money.

The landman said he didn't even know where the mineral tract is located!  He said he was calling from Midland and had just been pulled in by Expand because they know they are competing with Mitsui (Vanna Production) for acreage, and they want to get acreage ;eased as quickly as possible.

This was the first actual confirmation that Expand (formerly Chesapeake) is leasing in Anderson County.  Drake Exploration (leasing for Expand) has recorded lease memos covering about 50,000 acres in Leon, Houston, and Anderson Counties so far,

Permalink Reply by Skip Peel - Mineral Consultant 13 hours ago

That would be one heck of a step out for the Western Haynesville Play.  It's a good ways from the counties where Comstock and Aethon have proven up the play.  Have any wells been drilled in Anderson County?

Permalink Reply by Rock Man 13 hours ago

Three 17,000'+ wells west of Palestine. Then two very deep (19,000'+) wells to the south in Houston County.

All these will have gotten into the upper part (about half to 2/3'rds) of the Bossier / HV section in those areas.

And of course, the deep Augusta Yancey well in NW Houston County in 2024- which was most probably a CHK stealth well.

Permalink Reply by Skip Peel - Mineral Consultant 12 hours ago

Thanks, Rock Man/  Even the far west of Anderson is still a long way from the counties I've usually associated with the Western Haynesville.  The play area must be quite a bit larger.

Permalink Reply by Alan Herrington 12 hours ago

Yes, I think it is!  Over in Cherokee County, to the east of Anderson, more than 50,000 acres have been leased so far.  The project began in 2020 with two-year seismic options.  More than 90% of those were converted into O/G leases written by Key Exploration and East Texas Energy.  They have been extending leases that reached the end of the primary term.

I think it is likely that Expand is the company behind the Cherokee County leasing.  If you draw a line extending to the northeast through the leased areas in Robertson and Leon Counties, that line runs through southern Anderson County and into the Cherokee County lease area.

It's about 100 miles from Comstock's lease area in Robertson into the Cherokee lease area.

Permalink Reply by Skip Peel - Mineral Consultant 12 hours ago

It certainly looks to on trend with the formation.

Permalink Reply by Alan Herrington 13 hours ago

Comstock has competed a very successful well (tested at 41,000 MCF) in Freestone County, about 15 miles from the Anderson County border.  In addition, Expand drilled a vertical test well in northwest Houston County, and data is available from some deep Bossier vertical wells in the Tennessee Colony area in Anderson.  All the Mitsui and Expand leasing so far is located between these two data sources.  However, Mitsui (via Vanna Production) has started pushing the leasing eastward in south central Anderson County.  

There are indications that there are tens of thousands of acres in southern Anderson County that are likely to be viable for these Bossier/Haynesville horizontal wells.  However, there is no deep well data available, so leasing in these areas will be more speculative.  

Permalink Reply by Rock Man 12 hours ago

Companies like CHK, Comstock, EOG, Mitsui and others have the G&G manpower and smarts to understand the prospectivity of this part of the East Texas Basin based on a total basin analysis approach to that issue (especially as to organic presence and preservation)

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