Stonehenge, UGI Acquire Superior Midstream Appalachian Pipeline Gathering Systems for $120 Million
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Pine Run Gathering has completed a transaction to acquire Superior Midstream Appalachian for $120 million subject to customary adjustments.
Pine Run Gathering is a joint venture owned by a subsidiary of Stonehenge Energy Resources, a portfolio company of Energy Spectrum Partners, and UGI Corporation’s wholly owned subsidiary, UGI Energy Services.
Superior Appalachian owns and operates three gathering systems in Pennsylvania, namely Pittsburgh Mills, Snow Shoe, and Brookfield. The Pittsburgh Mills system is connected to UGIES’ Big Pine gathering system. All three have long-term acreage dedications and total combined daily flow of approximately 190 million cubic feet per day. The transaction was wholly financed by debt at Pine Run Gathering, in which Stonehenge and UGIES hold a 51 percent and 49 percent ownership interest, respectively, and is expected to be immediately accretive to earnings.
“Today marks an exciting day for us and our partners at UGI Energy Services. This acquisition underscores our optimism about the future of our industry and the strength of our partnerships with UGI and Energy Spectrum,” said Patrick Redalen, president and CEO of Stonehenge.
“We are excited to welcome the talented team that has been supporting these assets and look forward to continuing to work closely together with the customers on all our systems as we help provide the energy needed by our country and the world,” added Redalen.
“We are excited to announce this investment alongside our partners at Stonehenge,” said Bob Flexon, president and CEO, UGI Corporation.
“The assets are highly complementary to our existing midstream footprint and will extend our reach from producers through to end-use customers, demonstrating our commitment to explore additional growth opportunities within the midstream business,” added Flexon.
Headquartered in Westminster, Colorado and backed by Energy Spectrum Capital, Stonehenge Energy Resources is a private energy company focused on building, owning, and operating midstream facilities in the Appalachian basin to support its producer-partners in the optimum development of their resources. Formed in 2007, Stonehenge supported the early Appalachian unconventional shale gas development by gathering and processing NGL-rich gas in western Pennsylvania. With this acquisition, Stonehenge operates five natural gas gathering systems across western and central Pennsylvania.
UGI Corporation is a distributor and marketer of energy products and services in the U.S. and Europe. UGI offers safe, reliable, affordable, and sustainable energy solutions to customers through its subsidiaries, which provide natural gas transmission and distribution, electric generation and distribution, midstream services, propane distribution, renewable natural gas generation, distribution and marketing, and energy marketing services.
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