For private-equity buyers, the gas deal is dead. Long live the gas deal.

The one on the slab is 2007’s $45 billion buyout of TXU, now known as Energy Future Holdings and facing bankruptcy. With natural gas usually setting power prices in Texas, TXU was effectively a leveraged bet on gas. When the deal was announced, futures indicated that gas would average almost $8 a million British thermal units over the following five years. One shale boom and economic recession later, it actually averaged less than $5.50 and was heading down, hence Energy Future’s lack of a clear one.

Find the full story at The Wall Street Journal.