Centalion Expands Gulf Coast Footprint with Silver Hill Asset Buyout

The transaction transfers a high-quality asset base that Silver Hill aggressively expanded between 2021 and 2023. By scaling production from under 100 MMcfd to its current output while enhancing saltwater disposal and midstream capacity, Silver Hill optimized the fields for Gulf Coast trading. These assets now anchor Centalion’s broader regional strategy, which focuses on leveraging integrated logistics to supply both domestic and LNG export markets.

Silver Hill founder Kyle D. Miller noted that the sale marks a successful exit after years of disciplined risk management in a volatile market. For Centalion, the move represents a significant commitment to domestic production. Chairman and CEO Gary Pedersen stated the firm intends to deploy capital to develop these resources further, bolstering energy supply for households and industrial users alike.

Centalion will manage the development program in partnership with Western Natural Resources, led by Heath Mireles. The group plans to utilize its existing trading infrastructure to maximize value across the basin. Financial advisory for the deal was provided by Greenhill for Centalion and Jefferies for Silver Hill, with Kirkland & Ellis and Willkie Farr & Gallagher serving as legal counsel, respectively.