(Bloomberg) – Tokyo Gas Co. will offload its stake in a Texas shale project, amid scrutiny from activist shareholder Elliott Investment Management, which has called for the utility to streamline its portfolio.
The company will sell all the interests held by its subsidiary in the Eagle Ford shale gas project to Shizuoka Gas Co. for $130 million, the two firms said in a statement on Friday.
Japan’s largest gas utility has been under Elliott’s scrutiny since last year, when the activist investor revealed it held a 5% stake in Tokyo Gas and called for it to sell down its multi-billion-dollar real estate portfolio. The company has since said it is considering various measures to unlock value of assets with low capital efficiency, in all areas of its business portfolio.
The firm, which acquired a stake in the Eagle Ford project in 2016, will instead focus on assets it gained through the acquisition of Rockcliff Energy in 2023 in East Texas and North Louisiana, according to a statement.
For Shizuoka Gas, the deal will be its first foray into the U.S. market, and comes as the Japanese government makes overtures to President Donald Trump about buying more U.S. energy. The company said it will also consider additional business developments in the U.S.
This article was originally posted at www.worldoil.com
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