UGI to Acquire Stonehenge Appalachia Midstream Natural Gas Gathering System
UGI Corporation announced that its subsidiary, UGI Energy Services, (UGIES), has entered into a definitive agreement to acquire Stonehenge Appalachia, (Stonehenge) from Stonehenge Energy Holdings, LLC for approximately $190 million. This investment is expected to be immediately accretive to adjusted earnings.
The Stonehenge system, located in Butler County, Pennsylvania, includes more than 47 miles of pipeline and associated compression assets, and has gathering capacity of 130 million cubic feet per day.
“We are very pleased with this investment and the opportunity to grow our presence in the Appalachian Basin,” said Robert F. Beard, Executive Vice President – Natural Gas, Global Engineering, Construction and Procurement. “When we acquired the assets of Columbia Midstream Group in 2019, we committed to additional investments to build or buy quality systems in the region.”
The acquisition of Stonehenge, in addition to UGI’s recent purchase of an ownership stake in the Pine Run gathering system, demonstrates the company’s commitment to the Appalachian basin, which averaged a record 31.9 billion cubic feet per day of production in the first half of 2021, the highest for a six-month period since production began in 2008, Beard said.
“Importantly, this transaction has stable cash flows that are underpinned by a long-term contract with minimum volume commitments and significant acreage dedications in some of the most prolific production areas in the Appalachian Basin,” he said.
The transaction is subject to customary regulatory and other closing conditions, including Federal antitrust clearance pursuant to the U.S. Hart-Scott-Rodino Antitrust Improvements Act. Assuming fulfillment of all conditions, the transaction is expected to close by Jan. 31.
Related News
Related News
- Freeport LNG Plant Runs Near Zero Consumption for Fifth Day
- Biden Administration Buys Oil for Emergency Reserve Above Target Price
- Mexico Seizes Air Liquide's Hydrogen Plant at Pemex Refinery
- Kinder Morgan Declares Force Majeure on West Texas Gas Pipeline After Fire
- Williams Delays Louisiana Pipeline Project Amid Dispute with Competitor Energy Transfer
- Venezuela Proposes Alternative Payment Plan as Weak Bids Surface in Citgo Auction
- Baker Hughes Wins Contract for Huge Aramco Gas Expansion Project
- Enbridge Picks Contractors for Great Lakes Tunnel Project, Securing Line 5 Pipeline Route
- Russia's Gazprom Sees Worst Loss in Decades as European Gas Sales Collapse
- Shell Nigeria Inks $100 Million Gas Pipeline Deal with Oyo State
Comments