BANPU Successfully Acquires Natural Gas and Midstream Assets in Barnett Shale, US

Banpu Public Company Limited (SET: BANPU) has successfully acquired natural gas and midstream assets in the Barnett Shale in the United States from Exxon Mobil, according to a statement released on Friday.

On 30th June 2022, BANPU’s subsidiary BKV Corporation (BKV) acquired the natural gas and midstream assets in the Barnett Shale, United States from Exxon Mobil Corporation’s subsidiaries XTO Energy, Inc. and Barnett Gathering LLC (XTO). The transaction is valued at US$750 million (roughly THB26,452 million), including contingent payments of up to US$50 million. The revenue recognition from the operation of this asset will be realized from 1st July 2022 onward.

Upon a successful acquisition, BANPU will increase its production by 225 MMcfepd, resulting in total net gas production from approximately 700 MMcfepd to 900 MMcfepd and 1P reserves increase from approximately 4.4 Tcfe to more than 5.8 Tcfe. BKV therefore became the largest gasweighted producer of natural gas in the Barnett area. 

The asset is a scale and low-risk producing asset in the known basin with a 100% owned including midstream gathering system and compression of approximately 750 miles of gathering pipelines and over 20 compressor stations with direct access to key markets with ample midstream infrastructure in-place and diversified products of Natural Gas, Natural Gas Liquid (NGL), and condensate for sufficient takeaway capacity to an attractive key gas demand center in the Gulf Coast. BKV therefore is a natural basin acquiror for the asset having extensive synergies with our existing operation and can immediately generate additional cash flow. 

This acquisition represents a significant milestone in the development of BANPU’s Greener Smarter business in the US. BANPU is committed to accelerate business transformation by expanding greener energy and energy technology portfolio, elevating antifragile strategy across all business groups to deal with the challenge of emerging uncertainty as well as exploring new business opportunities for sustainable growth.