Key Takeaways:
- Expand Energy acquires Twin Eagle for $1.25 billion in cash and debt
- Deal expected to contribute more than $200 million in annual EBITDA
- Combined entity targets $750 million yearly free cash flow from marketing
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Expand Energy buys Twin Eagle for $1.25B in gas marketing push
Expand Energy Corporation agreed to buy Twin Eagle Holdings from Five Point Infrastructure for $1.25 billion, merging North America's largest natural gas producer with a top independent gas marketer to capture more value across the supply chain.
"The transaction accelerates Expand's evolution into a leading integrated natural gas company with a commercial and marketing advantage compared to peers," said Michael Wichterich, interim president and chief executive officer of Expand Energy.
The deal, expected to close in the third quarter of 2026 pending regulatory approvals, combines Expand's roughly 9 Bcf/d of production with Twin Eagle's marketing platform that moves more than 5 Bcf/d of natural gas across the U.S. and Canada. Twin Eagle manages roughly 44 Bcf of storage capacity and serves more than 1,000 customers. On a pro forma basis, the combined portfolio will market approximately 14 Bcf/d supported by 9 Bcf/d of firm transportation and 49 Bcf of storage capacity, reaching about 90 percent of the North American natural gas market.
The acquisition is immediately accretive, with Expand projecting more than $200 million in annual EBITDA contribution from Twin Eagle and $150 million per year in cost and revenue synergies by the end of 2028. The company raised its incremental free cash flow target from its marketing and commercial strategy by 50 percent to $750 million per year, reflecting the expanded platform's repeatable earnings stream. PJT Partners advised Expand on the transaction, while Lazard served as financial advisor to Twin Eagle. White & Case and Latham & Watkins provided legal counsel to Expand and Twin Eagle, respectively.
Founded in 2010, Twin Eagle has grown into one of the largest independent asset-backed natural gas marketing and optimization businesses in North America, with earnings supported by recurring physical supply and delivery relationships. The deal marks a significant exit for Five Point Infrastructure, the private equity firm that partnered with Twin Eagle management over the past dozen years. "We saw a tremendous opportunity to partner with Twin Eagle management to expand its platform and capitalize on the growing demand for North American gas," said David Capobianco, CEO and managing partner of Five Point Infrastructure. Expand expects to fund the purchase through cash on hand and borrowings under its revolving credit facility, with key Twin Eagle executives including President and CEO Jeremy Davis remaining with the company after closing.
This article is for informational purposes only and does not constitute investment advice.
[1] Expand Energy Corporation to Acquire Twin Eagle, Creating North America's Leading Integrated Natural Gas Company[2] Ukraine war latest: Russian attack on Kyiv triggers fires - as Iran blames Ukraine for attack on vessel[3] Expand Energy's $1.25B deal would combine approximately 14 Bcf/d in marketed volume - Stock Titan[4] Expand Energy Corporation to Acquire Twin Eagle, Creating North America’s Leading Integrated Natural Gas Company - Yahoo Finance
