Chevron U.S.A. Inc., a subsidiary of Chevron Corporation, has entered into a strategic joint venture with TG Natural Resources (TGNR) through the sale of a 70% interest in its East Texas natural gas assets. The $525 million transaction includes a $75 million upfront cash payment and a $450 million capital carry to fund future Haynesville Shale development.
TGNR—majority owned by Tokyo Gas (93%) and Castleton Commodities International (7%)—will assume operatorship and gain over 250 gross drilling locations, significantly extending its inventory life to more than 20 years at current development pace. Chevron will retain a 30% non-operated working interest along with an overriding royalty interest, maintaining upside exposure while reducing capital commitment.
Chevron expects to generate over $1.2 billion in value through this capital-efficient structure, aligning with its broader strategy to divest $10–15 billion in assets by 2028 and optimize its global energy portfolio. The Haynesville acreage, largely undrilled, provides development flexibility and minimizes well interference.
TGNR’s CEO, Craig Jarchow, highlighted the $170+ million in expected synergies due to operational overlap with TGNR’s legacy acreage.
This move follows Chevron’s recent acquisition of nearly 5% of Hess Corporation shares, reaffirming its focus on strategic partnerships and capital discipline amid ongoing energy market transformation.
