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Expand Energy to Acquire Twin Eagle in $1.25 Billion Deal

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Expand Energy (EXE) said on Monday it had agreed to acquire natural gas marketing firm Twin Eagle Holdings for $1.25 billion in cash and debt from Five Point Infrastructure.

The energy firm said the transaction is expected to close in Q3 2026, subject to regulatory approvals.

Expand said it would fund the acquisition using a combination of cash on hand and borrowings under its revolving credit facility.

The acquisition is set to expand Expand's downstream marketing capabilities, combining its large-scale natural gas production with Twin Eagle's physical gas marketing, storage and transportation portfolio.

Twin Eagle currently markets more than 5 billion cubic feet per day of natural gas, manages about 44 Bcf of storage capacity and controls about 2 Bcf/d of firm transportation capacity. It serves over 1,000 customers across the US and Canada.

Following the acquisition, the combined energy firm is projected to market about 14 Bcf/d of natural gas, supported by about 9 Bcf/d of firm transportation capacity and 49 Bcf of storage.

Expand said the transaction is projected to be immediately accretive to earnings before interest, taxes, depreciation and amortization, contributing more than $200 million in annual EBITDA initially, while generating about $150 million of annual cost savings by the end of 2028.

The company also raised its long-term marketing and commercial strategy target, saying it now expects to generate $750 million of incremental annual free cash flow from the business, up 50% from its previous goal.

Expand said the acquisition would extend its reach to about 90% of North America's natural gas market by broadening access to major demand centers across the US and Canada while enhancing its ability to optimize production, transportation and storage assets.

Following completion of the transaction, Twin Eagle will operate as a wholly owned subsidiary of Expand.

Price: $90.83, Change: $-0.69, Percent Change: -0.75%

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