Mubadala Energy Joins Forces with Kimmeridge in Strategic U.S. Gas Expansion
Deal News | Apr 10, 2025 | Zawya
Mubadala Energy, based in Abu Dhabi, has signed a major agreement with Kimmeridge to acquire a 24.1% share in Kimmeridge's SoTex HoldCo LLC. SoTex, which holds interests in Kimmeridge Texas Gas and Commonwealth LNG, represents Mubadala's strategic entry into the U.S. upstream gas and LNG market. This partnership is poised to enhance Mubadala Energy's international portfolio, comprising 70% gas, as it expands across the global gas value chain. Kimmeridge's current operations include producing unconventional gas in Texas and a pre-FID LNG facility in Louisiana, intended to capitalize on the increasing demand for natural gas and LNG worldwide. The deal aligns with the UAE's 2050 net-zero ambitions and stands as a testament to both firms' commitment to a cleaner energy future. The transaction awaits regulatory approvals.
Sectors
- Energy
- Private Equity
Geography
- United States – The transaction marks Mubadala Energy's entry into the U.S. market via investment in Kimmeridge's gas and LNG operations.
- United Arab Emirates – Mubadala Energy is based in Abu Dhabi, UAE, and the investment aligns with the country's strategic energy goals.
Industry
- Energy – The article discusses Mubadala Energy's investment in the U.S. gas and LNG sector, a critical part of the energy industry.
- Private Equity – Kimmeridge, an alternative asset manager, is engaging in a transaction with Mubadala, which involves equity issuance in its portfolio company.
Financials
- 24.1% – The stake acquired by Mubadala Energy in Kimmeridge's SoTex HoldCo LLC.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Mubadala Energy | Investor | Company | An international energy company focused on expanding its gas portfolio, headquartered in Abu Dhabi. |
| Kimmeridge | Asset Manager | Company | An alternative asset manager focused on the energy sector. |
| SoTex HoldCo LLC | Target Company | Company | A portfolio holding under Kimmeridge, comprising upstream gas and LNG projects. |
| Kimmeridge Texas Gas | Operating Company | Company | Operates an upstream unconventional gas business in the Eagle Ford in South Texas. |
| Commonwealth LNG | Operating Company | Company | Owns a pre-FID LNG liquefaction and export facility in Louisiana. |