Tokyo Gas is transferring its Louisiana-based gas field subsidiary TGNR TVL LLC to Grayrock Energy IV, LLC as part of its asset portfolio realignment strategy.

Target Company Information

Tokyo Gas Co., Ltd. has announced the transfer of its local subsidiary, TGNR TVL LLC, which holds gas field interests in Louisiana, to the Texas-based oil and gas development firm Grayrock Energy IV, LLC. This move is part of Tokyo Gas's broader initiative to reassess and optimize its asset portfolio. Since the beginning of this year, Tokyo Gas has been strategically entering into partnerships, including a joint shale gas development project with Chevron in East Texas, while also divesting its gas field interests in other regions such as the sale to Shizuoka Gas.

For the fiscal year ending December 2024, TVL is reported to have generated revenues of approximately 13.6 billion yen, with an operating profit of around 2.78 billion yen. The company’s net assets stand at 55.7 billion yen. The transfer agreement, valued at approximately 39.3 billion yen (or 255 million USD), specifies the sale of Tokyo Gas's entire stake in TVL, which is set to finalize on December 31, 2025.

Industry Overview in the United States

The oil and gas industry in the United States remains one of the most influential sectors in the global economy. In recent years, there has been a significant shift toward shale gas extraction, particularly in states like Texas and Louisiana. This shift has led to a b