Mitsubishi Corp. has agreed to acquire Aethon Energy Management LLC’s US natural gas production and pipeline assets for $5.2 billion, marking the largest purchase ever by a Japanese company in the American shale sector.
Including debt, the deal values the assets at about $7.5 billion and significantly expands Mitsubishi’s footprint in the US gas market.
The transaction involves the sale of Aethon III LLC, Aethon United LP, and related entities and interests to Mitsubishi, the Japanese trading house said in a statement on Friday.
The companies had been working toward a deal since at least mid-2025.
Deal structure and strategic rationale
Under the agreement, Mitsubishi will pay $5.2 billion for Aethon’s equity interests and assume $2.33 billion of net interest-bearing debt.
A separate statement put the total enterprise value at $7.5 billion.
Aethon Energy Management will retain the right to buy back up to 25% of Aethon’s upstream and midstream assets.
“The US gas market is the world’s largest in domestic demand, production, and exports, and further demand growth is expected, driven by rising power needs from AI/data centers,” Mitsubishi said.
The acquisition gives Mitsubishi substantial natural gas production and pipeline assets located near the US Gulf Coast, an area that hosts several liquefied natural gas export terminals.
Aethon’s upstream assets are concentrated in the Haynesville shale basin in eastern Texas and northern Louisiana, one of the most prolific gas-producing regions in the country.
Albert Huddleston, who founded Dallas-based Aethon, and his family are set to benefit significantly from the transaction.
The company is among the most active drillers in the Haynesville and is strategically positioned close to LNG export facilities along the Gulf Coast.
Japan’s expanding bet on US Gas
The deal reflects a broader push by Japanese energy companies to expand their exposure to US oil and gas, particularly natural gas.
Japanese firms are responding to renewed support for US energy development from President Donald Trump’s administration, which has urged Tokyo to increase investment in North America.
Mitsubishi, which counts Berkshire Hathaway Inc. as a major shareholder, is already a major global player in liquefied natural gas.
It engages across the full LNG value chain, from upstream production to trading, marketing, and logistics, and holds equity stakes in LNG projects in Malaysia, Oman, Australia, Russia, the US, and Canada.
Its total equity LNG production is currently about 15 million metric tons per year.
Japan’s government has identified natural gas as a key transition fuel even beyond 2050 and expects power demand to rise sharply over the next decade due to the artificial intelligence boom and the growth of data centers.
Market impact and recent precedents
The acquisition adds to a string of recent Japanese investments in US shale.
Tokyo Gas Co. bought Rockcliff Energy II LLC for $2.7 billion in 2023, while Jera Co. recently acquired a stake in a shale gas asset in western Louisiana.
In October, JERA announced its intention to acquire US natural gas production assets for $1.5 billion, and in December, Japan Petroleum Exploration confirmed its plan to acquire Verdad Resources Intermediate Holdings for $1.3 billion, marking its largest-ever deal.
Shares in Mitsubishi extended their decline following the announcement, trading down 2%, compared with a 0.3% fall in Japan’s Nikkei 225 index.
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