Aethon to acquire Tellurian’s integrated upstream assets for $260M

Tellurian and Aethon Energy Management or Aethon, announced an agreement for Aethon to acquire Tellurian’s integrated upstream assets for $260M , alongside a Heads of Agreement for Aethon to purchase two million tons per annum or mtpa, of liquified natural gas LNG from Tellurian’s Driftwood LNG plant. The assets will expand Aethon’s footprint in the Louisiana Haynesville and Bossier shale basins with approximately 31,000 net acres, including gathering and treating systems that have capacity for up to 100Mcubic feet per day that will bring Aethon’s pro forma gathering and treating capacity to over 3 Bcf/d across its assets… The transaction is expected to close during the second quarter of 2024, and Tellurian will use the proceeds to reduce borrowings and for general corporate purposes. Tellurian Executive Chairman Martin Houston said, “Today’s agreements with Aethon take us several steps closer to developing the Driftwood LNG project, for which Aethon is a vital partner. The offtake agreement for two mtpa provides the foundation to accelerate Driftwood and demonstrates that we have successfully aligned our commercial offerings to meet the needs of potential customers. For Tellurian, the proceeds from the sale of our upstream assets allow us to retire senior secured notes and strengthen our balance sheet for the long term. “