TG Natural Resources LLC (“TGNR”), a company indirectly owned by Tokyo Gas Co., Ltd. (“Tokyo Gas”) and Castleton Commodities International LLC (“CCI”), announced that it has closed on a transaction to acquire a 70% interest in the East Texas gas assets of Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (“Chevron”), for $525 million, with $75 million paid in cash and $450 million as a capital carry to fund Haynesville development, prior to customary adjustments (the “Transaction”).

With this transaction, TGNR will add over 250 gross locations to its existing Haynesville inventory (assuming four wells per section). This will extend TGNR’s inventory life beyond 20 years at the current development pace, not counting the Bossier and Cotton Valley plays which are commercial at current prices. The Haynesville acreage in this transaction is relatively undrilled and held by shallower production, allowing parent-child effects between wells to be mitigated.

Craig Jarchow, CEO of TGNR said, “We are excited to partner with a world-class company like Chevron on this transaction. There is considerable operational overlap between the Chevron acreage and the legacy TGNR acreage, which will allow TGNR to realize synergies of over $170 million during the development of the asset.”

Advisors

Truist Securities served as the financial advisor to TGNR and Kirkland & Ellis LLP served as the legal advisor to TGNR.

About TG Natural Resources

TGNR is one of the largest producers in the Ark-La-Tex region of East Texas and Northern Louisiana. TGNR is jointly owned by TG East Texas Resources LLC, a wholly owned subsidiary of Tokyo Gas America, and CCI U.S. Asset Holdings LLC, a wholly owned subsidiary of Castleton Commodities International LLC (“CCI”). Please visit TGNR’s website for more information: www.tgnr.com

About Tokyo Gas

Founded in 1885, Tokyo Gas Co., Ltd. is Japan’s largest provider of city gas primarily in the Tokyo metropolitan area and surrounding Kanto region. Since the liberalization of Japan’s electricity market, it has also been providing electricity in the same area. As of its group’s management vision “Compass2030,” Tokyo Gas promotes the challenge of achieving “Net-Zero CO2” and will lead the transition to a decarbonized society. Please visit Tokyo Gas’ website for more information: www.tokyo-gas.co.jp/en/

About Castleton Commodities International LLC

CCI is a global energy commodity merchant with integrated businesses focused on marketing, merchandising, and trading commodities, and the ownership, operation, and development of commodities-related infrastructure assets. Please visit CCI’s website for more information: www.cci.com.

Forward-Looking Statements

This communication includes statements regarding the Transaction may contain forward-looking statements within the meaning of federal securities laws. TGNR believes that these expectations are based on reasonable assumptions; however, no assurance can be given that such expectations will prove to be correct. A number of factors could cause actual results to differ materially from the expectations, anticipated results or other forward-looking information expressed in this communication, including risks and uncertainties regarding state and federal tax matters, TGNR’s pro forma results after giving effect to the Transaction, capital expenditures, liquidity and financial market conditions, sufficiency of cash from operations, adverse market conditions and governmental regulations. TGNR undertakes no obligation to update these forward-looking statements except as required by law.

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