Aethon facilities in Wyoming, US, reported production levels of 2.5 billion cubic feet per day (bcf/d) in 2023. Credit: Postmodern Studio/Shutterstock.

Aethon Energy Management, a US-based investment firm, is considering strategic options for its natural gas production and midstream assets, which could include a potential sale or an initial public offering, reported Reuters.

The assets are valued at approximately $10bn, including debt.

This move is in response to the increasing demand for power, partly driven by the growth in AI and data centres, which has boosted the prospects for gas producers.

In 2023, natural gas accounted for around 42% of US power supply, as per US Energy Information Administration data.

Aethon’s assets, particularly concentrated in the Haynesville shale formation across Louisiana and East Texas, rank it among the largest privately held gas producers in the US.

It has hired investment banks Goldman Sachs and Citigroup to assess its options, with the transaction likely to take place in 2025.

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RedBird Capital Partners and the Ontario Teachers’ Pension Plan also own sizeable stakes in the assets up for sale.

A sale would align with the ongoing consolidation trend in the US oil and gas industry, marked by deals over the past two years.

Notable transactions include EQT’s acquisition of Equitrans Midstream and the merger of Chesapeake Energy with Southwestern Energy to form Expand Energy.

Beyond the Haynesville formation, Aethon also possesses upstream facilities in Wyoming.

The company’s production was reported to be around 2.5bcf/d in 2023.

In May 2024, Aethon agreed to acquire upstream assets from Tellurian for $260m, expanding its footprint in the Louisiana Haynesville and Bossier shale basins.

The deal includes approximately 31,000 net acres and systems capable of gathering and treating up to 100 million cubic feet per day.