Mubadala Energy Enters Major U.S. Upstream Gas and LNG Operation with Kimmeridge
- Equity investment into Kimmeridge's SoTex HoldCo marks Mubadala Energy's U.S. market entry and ambitious expansion strategy
- Kimmeridge's highly scalable upstream gas and LNG business comprises currently producing upstream gas assets and a pre-FID LNG project
ABU DHABI, United Arab Emirates, NEW YORK and HOUSTON, April 10, 2025 /PRNewswire/ -- Mubadala Energy, the Abu Dhabi headquartered international energy company, has today signed an agreement with Kimmeridge, the energy-focused alternative asset manager, to acquire a 24.1% interest in Kimmeridge's SoTex HoldCo LLC ("SoTex"), via the issuance of new equity.
SoTex holds two portfolio companies: Kimmeridge Texas Gas, which operates an upstream unconventional gas business in the Eagle Ford in South Texas, and Commonwealth LNG, which owns the 9.3 million metric tons per year (MTPA) pre-FID LNG liquefaction and export facility strategically located at the mouth of the Calcasieu Pass in Louisiana. Through SoTex, Kimmeridge is building America's first integrated gas independent to deliver low-cost natural gas from wellhead to water and meet burgeoning demand for responsibly-produced LNG across global markets.
Kimmeridge Texas Gas' current net production is over 500 MMcfe/d which is expected to grow organically to 1.5 Bcfe/d by 2031, while Commonwealth LNG is finalizing key pre-FID workstreams ahead of taking FID later this year with first offtake from the LNG plant planned for 2029.
Dr Bakheet Al Katheeri, Chairman of the Mubadala Energy Board and Chief Executive Officer, UAE Investments Platform, Mubadala Investment Company, commented: "Through this partnership and our entry into the U.S., we are to further build on our leading role in building energy champions that deepen our position in the global economy. We are delighted that Mubadala Energy has finalized this equity investment with Kimmeridge to enable the development of key gas projects in the U.S. Gulf Coast. As the company's first major investment in the U.S., this transaction positions Mubadala Energy for accelerated growth across the gas value chain in one of the world's most important and attractive energy hubs."
Marking Mubadala Energy's entry into the U.S. market, this significant equity investment is an important moment in Mubadala Energy's international expansion. It bolsters the company's ambitious growth plans to invest across the gas value chain in key energy hubs around the world and acts as a major addition to its existing global gas portfolio. Moreover, with the company's goal of playing a proactive role in the energy transition by supporting major gas projects as a bridge to a lower carbon energy future, this investment is in line with the UAE's 2050 net zero ambition.
Commenting on the investment, Mansoor Mohamed Al Hamed, Managing Director and CEO, Mubadala Energy, said: "As our first major investment in the U.S. this transaction offers a significant platform for future growth in one of the world's most important energy hubs. The investment also highlights our strong position to accelerate our expansion across the gas value chain and build on our strategic international portfolio. We're excited about the long-term opportunities this partnership offers, in line with our strategy to play a proactive role in the energy transition and grow our global gas portfolio."
Ben Dell, Managing Partner of Kimmeridge, added: "Mubadala's investment and unwavering support represent a significant milestone in the realization of our wellhead-to-water strategy, accelerating Commonwealth LNG's path to Final Investment Decision. We extend our sincere gratitude to the Mubadala Energy team for their invaluable partnership and collaboration as we work together to drive energy innovation and accelerate the transition to a cleaner, more sustainable energy future."
With U.S. LNG supply expected to grow to approximately 33% of the global market by 2050*, this investment is a strategic play in one of the world's most important gas hubs. In addition, world class infrastructure and a highly liquid M&A market ensure attractive long-term prospects in the region, supported by energy demand trends in areas such as AI data center development.
The transaction is subject to customary regulatory filings and approvals before closing.
Notes to Editor
*Wood Mackenzie data
About Mubadala Energy:
Mubadala Energy is an international energy company, headquartered in Abu Dhabi. With a diversified portfolio of operated and non-operated assets spanning 11 countries, its primary geographic focus is in the Middle East and North Africa, Russia and Southeast Asia.
Mubadala Energy is a wholly-owned subsidiary of Mubadala Investment Company, which is owned by the Government of Abu Dhabi. The company's portfolio is around 70 per cent gas, with an average working interest production of approximately 370,000 barrels of oil equivalent per day.
In line with Mubadala Energy's commitment to play an active role in the energy transition, the company is expanding across the gas value chain and actively pursuing opportunities in new energy sectors.
For more information, please visit www.mubadalaenergy.com
About Kimmeridge
Founded in 2012 by Ben Dell, Dr. Neil McMahon and Henry Makansi, Kimmeridge is an alternative asset manager focused on the energy sector. The firm is differentiated by its direct investment approach, deep technical knowledge, active portfolio management, proprietary research and data gathering.
For more information, please visit www.Kimmeridge.com
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