Chevron (NYSE:CVX) said post-market Monday it closed on the sale of a 70% interest in its east Texas natural gas assets to TG Natural Resources, an affiliate of Tokyo Gas (OTCPK:TKGSF) (OTCPK:TKGSY), and Castleton Commodities International for $525M, including $75M in cash and $450M as a capital carry to fund Haynesville development.

Chevron (NYSE:CVX), which will retain a 30% non-operated working interest in a joint venture with TGNR and an overriding royalty interest in the assets, said it expects the deal will generate more than $1.2B in value at current Henry Hub prices through the multi-year capital carry, retained working interest, and overriding royalty interest.

The company said the transaction supports its previously announced plans to divest $10B-$15B worth of assets by 2028 in order to optimize its global energy portfolio.