Centalion Expands Haynesville Footprint with Silver Hill Acquisition
Centalion Group, a leading independent physical energy trading company, has expanded its footprint in the U.S. natural gas market by acquiring upstream and midstream assets in Texas and Louisiana from Silver Hill Energy Partners. The portfolio includes approximately 300 MMft3d of natural gas production, 72,000 net acres in the Haynesville and Bossier regions, and 300 gross operated development locations, offering significant growth potential.
Silver Hill, a Texas-based private oil and gas company, built the position through strategic acquisitions between late 2021 and mid-2023. Despite volatile gas markets, the company operated up to four rigs, boosting production from under 100 MMft3d to over 300 MMft3d while retaining additional drilling locations. The assets also feature expanded midstream and saltwater-disposal capacity, along with long-term gathering and transportation agreements.
Kyle D. Miller, Founder & CEO of Silver Hill, expressed satisfaction with the outcome, noting that the assets will thrive under Centalion's management. The acquisition aligns with Centalion's Gulf Coast strategy and positions the company as a major player in the U.S. natural gas market. Gary Pedersen, Chairman & CEO of Centalion, highlighted the scalable position in the Haynesville and the group's commitment to developing U.S. natural resources.
Centalion plans to execute an active development program in partnership with Western Natural Resources, leveraging its integrated Gulf Coast gas capabilities. The transaction was advised by Greenhill, Kirkland & Ellis, Jefferies, and Willkie Farr & Gallagher.