...On 16 December, Tokyo Gas Co., Ltd. (Tokyo Gas, A1 stable), a major Japanese gas company, announced that its whole owned US subsidiary will acquire through TG Natural Resources (79% owned by Tokyo Gas) all shares of Rockcliff Energy II LLC (B1 stable). Rockcliff is a US (Aaa negative) natural gas exploration and production company, from Quantum Energy Partners for $2.7 billion (Ñ405 billion). The acquisition will likely be leveraged-neutral. If we expect a similar level of retained cash flow (RCF) from Rockcliff as last year, Tokyo Gas' leverage ¡ as measured by RCF/net debt ¡ will remain around 20% for the fiscal year ending 31 March 2024 (fiscal 2023). The company's 2022 decision to sell its minority stakes in LNG upstream projects in Australia (Aaa stable) is also likely to provide a financial buffer when the company receives the cash proceeds. The acquisition fits into Tokyo Gas' strategic growth plans of increasing its revenue base from overseas, including from shale gas businesses,...