Expand Energy to Buy Gas Firm Twin Eagle for $1.25 Billion

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessExpand Energy to Buy Gas Firm Twin Eagle for $1.25 BillionExpand Energy Corp. agreed to buy gas marketer Twin Eagle Holdings NA LLC from private equity firm Five Point Infrastructure for $1.25 billion, moving the largest US natural gas producer further into marketing and trading.Author of the article:Mitchell Ferman and Doug Alexander You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Expand Energy Corp. agreed to buy gas marketer Twin Eagle Holdings NA LLC from private equity firm Five Point Infrastructure for $1.25 billion, moving the largest US natural gas producer further into marketing and trading.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe takeover will make Expand Energy a leading gas marketer, with the company raising its target for annual free cash flow from its marketing and commercial by 50% to $750 million, the company said in a statement Monday. The transaction, which should help Expand reach customers across key markets in the US and Canada, is expected to close in the third quarter. The deal reflects an effort by gas producers to capture a greater share of the value chain as US demand grows. Rather than simply selling gas at the wellhead, Expand is betting it can earn higher and more stable returns by marketing more directly to customers, managing transportation and storage and optimizing flows across North American markets as LNG exports, data centers and power demand increase. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againExpand’s shares fell about 1% before the start of regular trading in New York. The company expects to pay for the transaction through cash on hand and borrowings from its revolving credit facility. “This is a bit expensive for trading and marketing businesses, which typically sell at a low multiple,” Roth analyst Leo Mariani said in a note on Monday. “However, we think this acquisition is a good strategic fit for the company.”Expand, formed through the 2024 combination of Chesapeake Energy and rival Southwestern Energy, has been building out its in-house trading team in an effort to improve margins and avoid outsourcing sales to middlemen. The company has been recruiting from ExxonMobil Holdings Corp., with a number of the Texas oil giant’s former gas traders leaving for Expand over the last year following Dan Turco, Expand’s executive vice president for marketing and commercial, who joined from ExxonMobil last year.Expand netted $91 million on its marketing in the first quarter, when a major winter storm caused gas prices to surge.(Updates details beginning in the second paragraph.)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.