Citadel, Ken Griffin’s hedge fund, is expanding into physical energy assets by seeking US shale oil production assets. Over the past year, the firm has invested approximately $1.4 billion in natural gas assets, including the acquisition of Paloma Natural Gas for around $1 billion and additional assets from Comstock Resources for roughly $430 million. The fund now operates 14 drilling rigs in the Haynesville basin, making it one of the largest operators in the region. Citadel also submitted a bid for WildFire Energy, an operator in the Eagle Ford shale formation in South Texas, but was outbid by Magnolia Oil & Gas, which acquired the company for $4.06 billion. This strategy marks the hedge fund’s transformation into an energy producer, with the goal of securing captive supply for its commodities trading operations.
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