Houston-based Chevron Corp. (NYSE: CVX) has sold a 70% stake in its East Texas gas assets for half a billion dollars. TG Natural Resources LLC, also based in Houston, bought the majority stake for $525 million. The company paid $75 million in cash and $450 million as a capital carry to fund development in the Haynesville Shale.

Chevron has agreed to sell 70% interest in its East Texas gas assets for $525 million, as part of the U.S. energy company’s strategy to optimize its portfolio.

Chevron has finalized a $525 million deal to sell a 70% stake in its East Texas natural gas assets to TG Natural Resources LLC, backed by Tokyo Gas and Castleton Commodities.