US-based natural gas producer Expand Energy has signed a definitive agreement to purchase Twin Eagle from Five Point Infrastructure in a transaction valued at $1.25bn.
The company plans to finance the purchase through a mixture of existing cash and borrowings from its revolving credit facility.
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The transaction is contingent upon standard purchase price adjustments and is expected to close in the third quarter of 2026, pending customary closing conditions and regulatory approvals.
Upon completion, Twin Eagle will become a wholly owned subsidiary of Expand Energy.
The combined entity, on a pro forma basis, is forecast to have a marketed natural gas volume of approximately 14 billion cubic feet per day (bcf/d), supported by around 9bcf/d of firm transportation and 49bcf of storage capacity.
Twin Eagle currently markets more than 5bcf/d and manages around 44bcf of storage and 2bcf/d of transportation.
Expand Energy expects the deal to contribute more than $200m in projected annual earnings before interest, taxes, depreciation and amortisation and anticipates $150m per year in cost synergies by the end of 2028.
The company has also raised the target for incremental free cash flow from its marketing and commercial strategy to $750m per year, a 50% increase from its previous estimate.
Expand Energy interim president and CEO Michael Wichterich said: “This transaction accelerates Expand’s evolution into a leading integrated natural gas company with a commercial and marketing advantage compared to peers.
“We are already North America’s largest natural gas producer, and now we will be its leading gas marketer, with direct access to customers and structural demand growth.
“By combining Expand’s scale, resource depth and financial strength with Twin Eagle’s marketing and optimisation platform, we will capture additional margin across the natural gas value chain and deliver more durable shareholder returns.”
Twin Eagle, founded in 2010, operates across wholesale marketing, asset management, logistics, structuring and analytics, serving more than 1,000 customers in the US and Canada.
PJT Partners is acting as the exclusive financial adviser to Expand Energy for the Twin Eagle acquisition, with White & Case providing legal counsel and DrivePath Advisors handling communications.
On Twin Eagle’s side, Lazard is serving as financial adviser, while Latham & Watkins has been appointed as lead legal counsel.
Kekst CNC advised Five Point Infrastructure on communications matters.
