UGI to acquire Mountaineer Gas Co.
By DJ Slater04 January 2021
UGI Corp., one of Pennsylvania’s largest natural gas utility companies, has signed an agreement to purchase Mountaintop Energy Holdings LLC, the owner of Mountaineer Gas Co., for US$540 million. UGI serves 700,000 customers across Pennsylvania and one county in Maryland. Mountaineer Gas Co., one of West Virginia’s largest natural gas utility companies, serves 215,000 customers across the state.
Mountaineer’s customer base is 90% residential, with the remaining 10% comprised of commercial and industrial customers. The fully regulated company with nearly 6000 miles (9656 km) of distribution, transmission, and gathering pipelines.
The purchase, subject to federal and state approvals, includes US$140 million of debt and is expected to close in the second half of the year.
The Marcellus Shale and Mountaineer’s capabilities and presence in this area served as some of the attractions for making the purchase, the company said.
“The transaction … provides us with an opportunity to support our customers in West Virginia with a long-term commitment to ensure safe, reliable, affordable and environmentally responsible natural gas services,” said John L. Walsh, UGI’s president and CEO. “We see significant investment opportunities to continue, if not accelerate, the replacement of over 1500 miles (2414 km) of bare steel pipelines and expand the reach of natural gas in West Virginia to both unserved and underserved areas.