Kimmeridge Secures Gas Takeaway Deal with Kinder Morgan for Eagle Ford Assets

By Mary Holcomb, Digital Editor

(P&GJ) — An affiliate of Kimmeridge, an investment firm focused on the energy sector, has signed a definitive agreement to acquire certain upstream assets from a private seller, as it expands its footprint in the Eagle Ford shale play.

Kimmeridge signed a definitive multi-year transportation agreement with Kinder Morgan Texas Pipeline LLC (KMTP) to secure midstream takeaway for its Eagle Ford natural gas, enabling KTG to deliver natural gas across multiple LNG facilities along the Gulf Coast.

These assets, which include approximately 30,000 acres and current production of 65 MMcfe/d, have a strong degree of overlap with Kimmeridge Texas Gas’ (KTG) existing 75,000-acre position in the play, offering significant scale and operational synergies. KTG anticipates continuing its multi-rig program focused on the Eagle Ford and Austin Chalk, with a target of delivering over 500 MMcfe/d net on a pro forma basis in 2026.

Combined with Kimmeridge's previously announced investment in Commonwealth, an LNG export terminal project strategically located on the Calcasieu River at the Gulf of Mexico near Cameron, Louisiana, these investments deepen Kimmeridge's South Texas foothold, and will position KTG to deliver natural gas/LNG from the wellhead to the water.

"Our acquisition of these upstream assets and agreement with KMTP will meaningfully advance KTG's ambitions of becoming fully integrated from source to sink, providing reliable, secure and clean energy to global markets,” Ben Dell, co-founder and managing partner of Kimmeridge, said. “Through our investments in South Texas, we believe we will be able to deliver net zero LNG, where all Scope 1 and 2 emissions will be offset by a combination of mitigation, sequestration and carbon removal."  

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