In response to this week’s announcement that JERA, a leading Japanese energy company and one of the world’s largest LNG buyers, was expanding its upstream footprint through the $1.5 billion acquisition of the South Mansfield joint venture from GEP Haynesville and Williams, Andrew Dittmar, principal analyst at Enverus Intelligence® Research provided this commentary explaining the deal’s significance:
“A land rush into the Haynesville by Asia companies with LNG commitments continues with JERA acquiring the South Mansfield joint venture from GEP Haynesville and Williams for $1.5 billion. Asia-based buyers have become the dominant force for acquisitions in the play, willing to outbid domestic producers to secure natural gas feedstock linked to the Gulf Coast’s growing LNG hub. For these buyer groups, a premium for assets is justified to hedge against a longer-term increase in Henry Hub as Haynesville inventory is depleted and ensure a cost-effective source of supply. The move by JERA follows Tokyo Gas acquiring Rockcliff Energy and buying into a joint venture with Chevron. After the latest transaction, private opportunities in the Haynesville are becoming sparse. Aethon remains the juggernaut among private operators far outstripping other groups with more than 800 remaining gross operated locations. There is new private equity capital flowing in to rebuild positions though, most notably Rockcliff Energy acquiring Pine Wave in one of the few Haynesville deals that has not featured an international buyer.”
