Expand Energy said on Monday it would buy privately held natural gas marketer Twin Eagle Holdings from Five Point Infrastructure for US$1.25 billion to expand its marketing business across North America.
With U.S. natural gas demand expected to grow, producers are increasingly expanding into marketing and logistics businesses to improve margins and gain greater control over how gas reaches end-users.
Founded in 2010, Twin Eagle is an independent natural gas and power marketer, with operations spanning wholesale marketing, asset management, logistics and analytics.
Following the deal’s completion, it will operate as a wholly owned subsidiary of Expand, with key members of Twin Eagle’s management team, including Chief Executive Jeremy Davis, remaining with the company, the companies said.
Expand now expects $750 million per year of incremental free cash flow from its marketing and commercial strategy, a 50 per cent jump from its previous target.
Twin Eagle currently markets more than 5 billion cubic feet of natural gas per day and manages about 44 billion cubic feet of storage capacity, but together, they would market about 14 billion cubic feet of gas per day.
The combined company is expected to reach about 90 per cent of the U.S. and Canadian natural gas market through access to key demand centers, the companies said.
The deal is expected to close in the third quarter of 2026. Expand plans to fund the acquisition through a mix of cash on hand and borrowings under its revolving credit facility.
(Reporting by Sumit Saha in Bengaluru; Editing by Shinjini Ganguli)
