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.

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.

TG Natural Resources, owned by Tokyo Gas Co. and Castleton Commodities International, is acquiring a 70% stake in the East Texas gas assets of Chevron U.S.A