Mubadala Energy, based in Abu Dhabi, has recently acquired a 24.1% stake in SoTex HoldCo LLC, a company owned by Kimmeridge, an energy-focused alternative asset manager. This deal marks a significant strategic move for both parties. SoTex holds two key assets: Kimmeridge Texas Gas and Commonwealth LNG. Kimmeridge Texas Gas operates an unconventional gas business in South Texas, with current production over 500 MMcfe/d, set to grow to 1.5 Bcfe/d by 2031. Commonwealth LNG, on the other hand, is a 9.3 MMtpa LNG facility located in Louisiana, strategically positioned at the Calcasieu Pass. It is finalizing key pre-FID workstreams and is expected to take FID later this year, with first production targeted for 2029.

Mubadala Energy enters major U.S. upstream gas and LNG operation with Kimmeridge.

The acquisition is seen as a strategic move by Mubadala Energy to expand its presence in the U.S. Gulf Coast, positioning it for accelerated growth in the gas value chain. Dr. Bakheet Al Katheeri, Chairman of Mubadala Energy, expressed excitement about the deal, highlighting its significance in the world's most important energy hub. Mubadala Energy's Managing Director and CEO, Mansoor Mohamed Al Hamed, also emphasized the strategic international portfolio and opportunities this partnership presents, aligning with the company's strategy to play a proactive role in the energy transition.

Kimmeridge, led by Ben Dell, Managing Partner, commended the deal as a milestone in realizing their wellhead-to-water strategy. They are accelerating Commonwealth LNG's path to FID and are grateful to the Mubadala Energy team for their collaboration in driving energy innovation and transitioning to a cleaner energy future.

With U.S. LNG supply expected to reach 33% of the global market by 2050, this investment underscores strategic positioning in one of the world's most important gas hubs. The transaction, supported by robust infrastructure and a dynamic M&A market, offers attractive long-term prospects, driven by energy demand trends in AI data centers and other high-value sectors.

This deal not only strengthens Mubadala Energy's position in the U.S. but also enhances SoTex's capabilities, positioning both companies for success in the competitive energy landscape.