Citadel Expands Further in US Natural Gas With $1 Billion Deal

Citadelmade one of its biggest investments yet in the physical US natural gas market, expanding in one of its most profitable business areas.

The hedge fund, led by Ken Griffin, agreed to buy assets from closely held Paloma Natural Gas LLC in a deal valued at about $1 billion, people familiar with the matter said. The acquisition gives Citadel access to acreage and producing assets, though it will not operate them directly.

While Citadel is already one of the most active traders of physical gas in the country, a foray into the drilling and production side of the ...