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.

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, CompressorTech² News features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
CONNECT WITH THE TEAM
Mike Brezonick
Mike Brezonick VP, Power Division Tel: +1 262 754 4112 E-mail: mike.brezonick@khl.com
Pete Ballistrieri Sales Manager Tel: +1 262 754 4131 E-mail: pete.ballistrieri@khl.com
CONNECT WITH SOCIAL MEDIA
Latest News
FCI meter designed for gas flow measurement
Designed for gas compression, boilers, clean room air flow, engines and furnaces
Hydrogen Online Conference scheduled for Oct. 8
Event also includes an online exhibition
Olaf Berlien becomes new CEO of gas engine manufacturer INNIO
Current CEO Carlos Lange will join advisory board as planned