"Catorus" US Gulf Coast gas platform expands with acquisition of farm assets "S. M. Galvan"
Houston, February 20 / WAM / Today, Catorus Company entered into a final agreement with SM Energy to acquire the assets of its Galvan farm.
The transaction includes approximately 60,000 net high-quality acres in South Texas, in addition to production of approximately 250 million cubic feet equivalent per day from 260 producing wells through December 2025, bringing total net production (estimated adjusted) to approximately 950 million cubic feet equivalent per day upon completion of the deal.
This acquisition reinforces Catorus’ continued growth trajectory towards establishing itself as one of the largest independent natural gas producers in the United States.
David Lawler, CEO of Catorus, said: “The acquisition of these high-quality, distinguished assets represents a transformational step for Catorus in terms of location, and enhances the scope of our operations along the Gulf Coast, while Galvan Farm significantly expands our presence in the Eagle Ford and Austin Chalk regions, and comes supported by existing infrastructure that supports long-term development with high capital efficiency.”
“By virtue of their proximity to the westernmost reaches of our operations, including a highly connected site in the heart of Webb County, they provide high-quality drilling inventory spanning more than a decade across both wet and dry gas windows, with additional growth opportunities beyond this time horizon,” Catorus CEO added.
With the completion of the transaction, the company will own more than 275,000 net acres across the US Gulf Coast, along with high-quality investment grade inventory spanning more than 15 years and positioned at the front of the cost curve in North America.
The integration of these assets, along with Catorus’ recent entry into the Haynesville Basin through a development agreement with Blackstone Minerals, uniquely enables the company to supply low-nitrogen natural gas to the key LNG hubs at Giles and Agua Dulce.
Today’s announcement follows continued progress at the Commonwealth LNG Project, Catorus’s wholly-owned 9.5 million tons per year export facility near Cameron, Louisiana.
Commonwealth previously announced long-term LNG purchase agreements totaling 7 million tons per year with Mercuria, Aramco Trading, Glencore, JERA, Petronas and EQT.
As the project progresses towards a final investment decision during the first quarter of 2026, Catoros has issued a limited notice of commencement to its EPC partner, Technip.
Together, these assets place Catorus in a unique position to implement its integrated wellhead-to-export strategy, as one of the leading fully integrated natural gas producers in North America, while providing reliable, high-quality American natural gas to domestic and global markets through LNG.
The Galvan Farm transaction is expected to be completed during the second quarter of 2026, subject to meeting the usual conditions and obtaining the necessary regulatory approvals.
BofA Securities serves as the exclusive financial advisor to Catorus, and Bank of America is the sole provider of committed debt financing.
Kirkland & Ellis is acting as legal counsel to Katoros, and Paul Hastings is acting as legal counsel to Bank of America in connection with the financing of the committed debt.
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