Mubadala Energy Strengthens Global Gas Portfolio with Strategic U.S. Investment

Mubadala Energy has acquired a 24.1% stake in SoTex HoldCo LLC, an affiliate of Kimmeridge, marking a significant move to bolster its presence in the U.S. natural gas sector and advance its global energy transition strategy.

The investment grants Mubadala Energy access to Kimmeridge's extensive operations in the Eagle Ford shale region of South Texas. SoTex's assets encompass approximately 30,000 acres with a current production rate of 65 million cubic feet equivalent per day. These holdings complement Kimmeridge's existing 75,000-acre position, offering substantial operational synergies and scalability.

Kimmeridge has outlined plans to enhance its production capacity, aiming for over 500 million cubic feet equivalent per day by 2026. This expansion is supported by a multi-year transportation agreement with Kinder Morgan Texas Pipeline LLC, ensuring efficient delivery of natural gas to multiple LNG facilities along the Gulf Coast.

Mubadala Energy's investment aligns with its strategic focus on expanding its gas-weighted portfolio and exploring opportunities in sustainable energy sectors. The company has been actively pursuing investments that support the energy transition, including ventures into LNG, blue hydrogen, and carbon capture technologies.

This acquisition also complements Kimmeridge's broader initiatives, such as its investment in Commonwealth LNG, a 9.5 million metric tons per annum export terminal project in Louisiana. Kimmeridge plans to reduce its stake in Commonwealth LNG to 51% post-final investment decision, bringing in infrastructure investors to support the project's development.