#United States #Houston #SM Energy #Caturus #Galvan Ranch

Caturus Expands Its Gulf Coast Gas Platform

Caturus has officially announced the finalization of an acquisition agreement with SM Energy Company to obtain the Galvan Ranch assets, further solidifying its position in the Gulf Coast's energy sector. This strategic expansion will bolster Caturus’ production capacity and enhance its operational scale.

Acquisition Overview

The Galvan Ranch assets encompass roughly 60,000 acres of high-quality land situated in South Texas, contributing approximately 250 million cubic feet equivalent per day (MMcfe/d) from 260 active wells as of December 2025. Following the acquisition, Caturus is expected to boast total production capabilities of about 950 MMcfe/d.

David Lawler, the Chief Executive Officer of Caturus, referred to this acquisition as a transformative advancement for the company, reinforcing their operational scale in a crucial area for natural gas production. He emphasized that the Galvan Ranch’s strategic location enhances their current holdings in the prominent Eagle Ford and Austin Chalk formations, emphasizing the existing infrastructure's role in facilitating cost-effective long-term development.

Significant Upgrades to Infrastructure

The integration of Galvan Ranch into Caturus' portfolio opens up more than a decade of high-quality drilling opportunities across the wet and dry gas regions. Additionally, the assets are located adjacent to existing operations, maximizing efficiency and potential productivity. This acquisition not only expands land holdings to more than 275,000 net acres but also positions Caturus strategically within the North American cost curve for natural gas production.

What makes this deal particularly notable is Caturus' recent entry into the Haynesville Basin through a development agreement with Black Stone Minerals, which complements the Galvan Ranch assets. By integrating these developments, Caturus is poised to deliver low-nitrogen natural gas to key liquefied natural gas (LNG) hubs like Gillis and Agua Dulce, thus enhancing their market reach significantly.

Commonwealth LNG Project Prospects

This announcement follows Caturus' ongoing progress with its wholly-owned Commonwealth LNG export facility, which has an impressive annual capacity of 9.5 million tons per annum (Mtpa) near Cameron, Louisiana. The company has successfully executed long-term natural gas offtake agreements with renowned partners, including Mercuria, Glencore, and PETRONAS, securing an additional market presence.

The Commonwealth facility's development includes issuing a Limited Notice to Proceed (LNTP3) to its engineering, procurement, and construction (EPC) partner, Technip, moving towards a final investment decision expected in the first quarter of 2026. Together, these assets and projects reinforce Caturus' strategy to establish itself as a premier integrated natural gas provider across North America.

Future Outlook

The Galvan Ranch transaction is anticipated to close in the second quarter of 2026, subject to standard conditions and regulatory confirmations. Caturus positions itself not only to respond to escalating domestic and international natural gas demands but also aims to promote its responsible and low-emission fuel strategy effectively.

By continuing to build out its wellhead-to-water approach, Caturus is on track to become a leading force in the natural gas market, committed to delivering high-quality U.S. natural gas reliably and sustainably.

In summary, Caturus’ acquisition of the Galvan Ranch assets is a decisive move towards consolidating its competitive edge in the energy sector, amplifying both production capacities and market outreach while ensuring further investment in infrastructure that supports sustainable energy development.