Will TG Natural Resources Be the Next Haynesville M&A Buyer?

SHREVEPORT, La.—TG Natural Resources is considering more Haynesville Shale M&A after closing a $2.7 billion deal in late 2023.

TG Natural Resources (TGNR) has grown into a top Haynesville producer in East Texas and Louisiana through several large-scale transactions.

The company manages 410,000 net Haynesville acres today, TGNR President and CEO Craig Jarchow said during Hart Energy’s 2025 DUG Gas Conference & Expo.

Production averages around 1.2 Bcfe/d. But TGNR is looking for additional scale and inventory life in the Haynesville.

The company has about 10 years of inventory today. It plans to exit 2025 with 20 years of inventory life, Jarchow said.

“Inventory is highly valuable. Now we have a scarcity premium,” he said. “We’re starting to see that play out in the Permian, and it’s playing out here in the Haynesville.”

Rumors are swirling that TGNR is interested in an East Texas property being marketed by Chevron, the Financial Times reported last fall.

The Chevron acreage in Panola County, Texas, is mostly undeveloped horizontally and includes about 300 operated Haynesville locations. The acres are 85% operated and 100% HBP, primarily by vertical Cotton Valley wells.

Chevron produced 11.5 Bcf from the Panola County property in 2024, according to Texas Railroad Commission (RRC) files.

As of the DUG Gas conference, the Chevron Haynesville property remains on the market.

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Inventory additions

TGNR, which is majority owned by Tokyo Gas America Ltd., got deeper in the Haynesville with a $2.7 billion acquisition of Rockcliff Energy II in late 2023.

Rockcliff II was attractive to TGNR for several reasons. The acquisition added production of around 1 Bcfe/d net, Jarchow said.

Rockcliff also demonstrated that the Haynesville play works in East Texas immediately adjacent to the Texas-Louisiana border.

“That was not at all clear when they started out,” Jarchow said.

The deal also added 207 net (332 gross) undeveloped locations, many of which support laterals over 10,000 ft. TGNR has 4.4 Tcfe in total proved reserves (3P reserves 6.7 Tcfe).

Acquiring Rockcliff grew TGNR’s production by 300%, cementing it as the fourth-largest producer in the Haynesville—behind Expand Energy, Aethon Energy and Comstock Resources.

TGNR plans to keep 2025 production flat at 1.2 Bcfe/d, Jarchow said. The company is currently running three rigs and two frac crews.

Using free cash flow from rising natural gas prices, TGNR plans to reduce debt and reach a 1.0x leverage ratio by year-end. It aims to reach a $1 billion debt target next year.

TGNR wants to keep debt low to have liquidity on hand for its next acquisition, Jarchow said.

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M&A history

TGNR was built through a series of acquisitions across East Texas and Louisiana.

In 2015, Castleton Commodities International (CCI) acquired East Texas assets from EDF Trading Resources for an undisclosed sum.

Castleton followed on in November 2016 with a $1.03 billion acquisition of Anadarko Petroleum’s Carthage assets, boosting its leasehold to 160,000 net acres.

Six months later, Tokyo Gas decided to buy a 30% stake in Castleton for a foothold in U.S. gas and LNG.

In 2019, Castleton bought Shell’s Haynesville assets from legacy BG for $150 million, and Tokyo Gas upped its stake to 46%.

In 2020, Castleton acquired Range Resources’ Terryville acreage in North Louisiana for $245 million, and Tokyo Gas hiked its ownership to a majority 70%.

In 2021, the name-change to TG Natural Resources became official and Tokyo Gas eventually took an ownership stake of just more than 90%.

CCI owns a minority stake in TGNR. CCI is backed by family offices, including Walmart’s Walton family, and was originally established as a subsidiary of the Louis Dreyfus Group.

The Rockcliff acquisition in December 2023 was the largest move for the Japanese utility giant, Jarchow told   last year.

Experts say buyers want Haynesville Shale exposure as U.S. natural gas prices rise and gas demand grows to fuel LNG exports, AI data centers and power generation.

In February, hedge fund giant Citadel acquired Haynesville Shale E&P Paloma Natural Gas for $1.2 billion, Hart Energy reported. Paloma Natural Gas was backed by private equity firm EnCap Investments LP.

Last summer, private operator Aethon Energy acquired Tellurian’s upstream assets for $260 million.

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Sources: Citadel Buys Haynesville E&P Paloma Natural Gas for $1.2B