Caturus Energy LLC plans to expand its LNG business through a $950‑million agreement to acquire South Texas assets from SM Energy Co.
The transaction—for SM Energy’s Galvan Ranch assets—includes about 61,000 net acres, roughly 250 MMcfed of production as of December 2025 from 260 wells in the southern Maverick basin in Webb County, Tex., and related infrastructure.
SM Energy expects the assets to produce 37,000–39,000 boe/d this year (45% liquids, 9% oil). Net proved reserves totaled about 168 MMboe as of Dec. 31, 2025.
“Galvan Ranch significantly expands our footprint in the Eagle Ford and Austin Chalk and comes with existing infrastructure that supports long‑term, capital‑efficient development,” said David Lawler, chief executive officer of Caturus. He added that the largely contiguous Webb County Core position provides “more than a decade of high‑quality drilling inventory across both the wet and dry gas windows, with additional upside beyond that horizon.”
Wellhead-to-water
Caturus is pursuing a wellhead‑to‑water model supported by its proximity to the Gulf Coast. The company aims to establish the only independent, fully integrated natural gas and LNG export platform in the US through Caturus Energy’s upstream operations and its 9.5-million tonnes/year (tpy) Commonwealth LNG project in Cameron, La. The company is moving toward a final investment decision on the plant and has secured 7 million tpy of long-term offtake agreements.
Following the acquisition, Caturus would have proforma net production of about 950 MMcfed across 275,000 net acres along the Gulf Coast. This deal follows a 2025 development agreement with Black Stone Minerals covering 220,000 gross acres in the Shelby Trough for a multi‑year drilling program.
Caturus said the Galvan Ranch acquisition and its Haynesville entry position the company “to deliver low‑nitrogen natural gas to key LNG hubs at Gillis and Agua Dulce.”
The transaction is expected to close in second‑quarter 2026. SM Energy president and chief executive officer Beth McDonald said the company plans to prioritize debt reduction with the proceeds and aims to sell more than $1.0 billion in assets. The company in late January 2026 closed its all-stock merger with Civitas Resources Inc.
